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Canadian Discount Brokers

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I currently use one of the larger Canadian discount online brokers for my trading.  I am just wondering if people think that there is a need to diversify across brokers?  Is it possible that due to some type of fraud whether at the company at large or by disenfranchised employee I could find I don't actually own what I think I own?  Are they audited or is there some type of government oversight that reduces this risk?  I know that any cash sitting around is covered by the government up to a limit but I am not sure about the securities.  I do so much work against the various stocks I invest in but put almost no thought into the company actually holding my investments.

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Is your broker one of the big banks? While the industry funds mentioned would be sunk if one of the big banks brokers went under, I think it's a virtual certainty that the govt would consider all 5 too big too fail and would cover client losses in that unlikely event.

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I use multiple brokers because:


1. 2008 proved that big, well-respected brokers can fail.

2. Investor protection (CIPF) is capped at $1M.

3. Even if investor protection were unlimited, I imagine the payout wouldn't be quick. It would be annoying and stressful waiting to get access to my money if I had it all at one broker that failed.



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