I am wondering if postgres LDAP login is secure? Would passwords be transmitted in clear text potentially if this is not set up properly?

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    With Postgres LDAP authentication, the password stays in your LDAP server. Postgres never knows the password. Are you using TLS to connect to Postgres? Are you using TLS to connect to LDAP? – Neil McGuigan Jul 17 '15 at 18:30

PostgreSQL LDAP authentication mechanism does not provide by itself security guarantee. The password used for DB is either plain text based or MD5 hashed. Your communication protocols do. But even if the communication is encrypted using SSL, it is better to hash your passwords with MD5 since you can always be sniffed or trapped using other methods.

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