Should someone with a $100K+ cash acct use a secondary broker? seeing that SIPC only covers up to $100K for cash accts(futures), what are some good ideas for secondary brokers? Thanks in advance.
someone closes their positions eod, then it would be all cash? SIPC doesnt cover that? what determines if your acct with IB is a futures acct(making it ineligible for SIPC coverage) when you're allowed to trade futures, stocks, currency, etc?
with 100k+, i'd suggest a secondary broker as a backup in case of outage by your main broker. not the question, but that's my answer.
SIPC only insures securities accounts which includes equities and options, not futures. So... IB and Etrade. Not sure if Etrade has automatic sweep of money into securities account, but I imagine it shouldn't be that difficult to move money back and forth internally between the futures and securities accounts. IB has automatic sweep of funds from futures in and out of securities account plus they have additional 900,000 cash coverage insurance from Lloyds, (provided of course that Lloyds is still around next week. )
Call IB legal department to get a real answer instead of 5 different guesses on this board. A unique idea mate!
Futures accounts are not securities accounts therefore they do not fall under the umbrella of SIPC protection. As to IB, cash is held in your securities account and only moved out when you enter a trade or back into your account when you exit a trade. It is done automatically on their system.