Registered: Apr 2011
12-29-11 07:22 PM
Quote from zdreg:
has any one received or a notice from a firm other than IB that the cash in their account is no longer sipc protected or is receiving a new type of protection?
All securities accounts (Equity/Option etc.) have SIPC. All futures accounts or any accounts that are not "securities" accounts are not covered. So, if you keep cash in your IB futures account, without knowing it, that cash is NOT covered by SIPC. Even though many IB customers don't know they have both accounts. I've spoken to traders that are convinced they trade futures at IB in their margin account, because it's one platform. ALL futures accounts in the USA must be a segregated futures account. If you're concerned, and I would not be, make sure your cash balances are moved after you close futures transactions.
Also, some brokerage firms are owned by banks. Some of those BDs give you the option to put some of your excess cash in an account at the bank, which would be covered by FDIC. So you can have your securities and cash up to the SIPC limited protected at the BD, and another $250K cash protected at the bank, then move money to the BD when you need it.