Forums - trading account & IRA account with same broker. Twice the SIPC Protection?

HOME FORUMS BROKERS SOFTWARE BOOKS CONTACT US

Your Account • Become a Member • Help • Search

	Forums ›› Direct-Access Brokers ›› Retail Firms ›› trading account & IRA account with same broker. Twice the SIPC Protection?

Page 1 of 3: 1 2 3

jackpearson

Registered: Jul 2006
Posts: 307

03-20-12 11:49 PM

If you have a trading account with $250k cash in it & an IRA account with the same broker as the trading account with $250k cash in it, are you fully SIPC insured at that broker for both the trading account & the IRA account? OR, are you just SIPC insured for $250k of the total $500k you have at that broker?

Edit/Delete • Quote • Complain

rmorse

Registered: Apr 2011
Posts: 1056

03-20-12 11:58 PM

Quote from jackpearson:

If you have a trading account with $250k cash in it & an IRA account with the same broker as the trading account with $250k cash in it, are you fully SIPC insured at that broker for both the trading account & the IRA account? OR, are you just SIPC insured for $250k of the total $500k you have at that broker?

I believe SIPC goes by tax ID. So your IRA and your personal account have the same SS#, that would be one claim. If you do your person trading through an LLC with an EIN #, that would be a second claim with SIPC.

Edit/Delete • Quote • Complain

newwurldmn

Registered: Apr 2011
Posts: 2625

03-21-12 12:38 AM

I thought there is no issue with IRA's as they are cash accounts and thus securities are held in your name not the firms.

Is that right Bob?

Edit/Delete • Quote • Complain

jackpearson

Registered: Jul 2006
Posts: 307

03-21-12 12:41 AM

Quote from rmorse:

I believe SIPC goes by tax ID. So your IRA and your personal account have the same SS#, that would be one claim. If you do your person trading through an LLC with an EIN #, that would be a second claim with SIPC.

How about both the trading account & an IRA account, $250k cash in each, with the same retail broker? Will both be SIPC insured?

Edit/Delete • Quote • Complain

rmorse

Registered: Apr 2011
Posts: 1056

03-21-12 12:53 AM

Quote from newwurldmn:

I thought there is no issue with IRA's as they are cash accounts and thus securities are held in your name not the firms.

Is that right Bob?

SIPC covers cash and securities lost or stolen. Futures accounts are segregated accounts, but someone at MF Global still took the assets. So, you still need SIPC to protect cash accounts.

Edit/Delete • Quote • Complain

rmorse

Registered: Apr 2011
Posts: 1056

03-21-12 01:00 AM

Quote from jackpearson:

How about both the trading account & an IRA account, $250k cash in each, with the same retail broker? Will both be SIPC insured?

I'm not claiming to be an expert on this, but I have called SIPC in the past. At one broker, each "person" is allowed one claim. If you have multiple accounts, it would be included in one claim. Your max protection under SIPC is the SIPC limits on your combined accounts. SIPC only covers the loss, you can't assume the loss is total, so you might be fine anyway. But, you won't get paid for both over the SIPC limits if the loss needs to be replaced.

Again, if you use an entity for your personal trading, it would be considered another "person", as long as you use the EIN#.

Edit/Delete • Quote • Complain

Page 1 of 3: 1 2 3

Receive an email whenever a new post is added to this thread by subscribing to it.

Rate This Thread:

Forum Jump:

Conduct Rules - Privacy Policy - Day Trader - Day Trader Forum - Best Trading Software - Sitemap

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures Futures Brokerage & Clearing AMP Global Clearing Futures and FX Trading Bright Trading Professional Equities Trading CTS Futures Trading Software DaytradingBias.com Professional Trading Analytics ECHOtrade Professional Trading Firm	eSignal Trading Software Provider FXCM Forex Trading Services Global Futures Futures, Options & FX Trading Interactive Brokers Pro Gateway to World Markets JC Trading Group Direct Access Trading MB Trading Direct Access Trading	MultiCharts Trading Software Provider NinjaTrader Trading Software Provider OANDA Currency Trading optionshouse Option Trading & Education Rithmic Futures Trade Execution Platform SpeedTrader Direct Access Trading	SpreadProfessor Spread Trading Instruction thinkorswim by TD Ameritrade Direct Access Trading TradersStudio System Building & Backtesting Trading Technologies Trading Software Provider Trend Following Trading Systems Provider