At what point do you millionaires split up your funds and manage different brokerage accounts?

Discussion in 'Risk Management' started by ElectricSavant, Nov 22, 2019.

  1. 250k? 500k? 1 million?

    Just wondering as a friend of mine asked.


    P. S. Is there software to group trade them?
  2. dozu888


    a friend of yours... hm..

    SIPC limit is 500k, but the big brokerage houses all have additional insurance so it really shouldn't matter.. just spread them around as you see fit..
  3. Real Money

    Real Money

    Depends on the investment goals and what type of trading they're engaged in.
    Last edited: Nov 22, 2019
  4. speedo


    FDIC insures bank holdings 250k per account, account holder. SIPC will cover 500k total (250k cash and 250k securities). SIPC does not cover futures accounts.
  5. ETJ


    When another firm has some expertise that your existing firm doesn't possess. You are an equity owner and you want someone with muni bond skills your current broker doesn't have. Forget about brokerage firm excess coverage - it has a firm cap. If your big enough where SIPC becomes irrelevant you hold your positions away from the brokerage house.
  6. If this Futures trader wants to keep his funds fully invested as he has experienced an unexpected windfall with his Futures trading....does he leave it all at AMP for example? Do I suggest to him to put some at IB?..Dorman?...what if he leases his own seat at the CME? those retail firms accomodate him?

    I am surprised I cannot point him to a thread here...this is EliteTrader right?
    Last edited: Nov 22, 2019
  7. guru


    The more money you have the less brokers you need. Only the small guys constantly switch and try everything to find best broker for the future when they’ll have more money.
    While you can use sub-accounts for whatever purposes you may want.
  8. dozu888


    what -

    e.g. IB covers additional $30m... Fidelity covers $1b, why is this irrelevant..
    nooby_mcnoob likes this.
  9. ETJ


    IB is capped at $150 million last time I looked and if you don't think a $1B is chump change at Fidelity you are sorely mistaken. All the excess insurance used to be written by Lloyds - so it is truly irrelevant.
  10. ETJ


    Account Protection

    Customer securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sublimit of $250,000) and under Interactive Brokers LLC's excess SIPC policy with certain underwriters at Lloyd's of London 1 for up to an additional $30 million (with a cash sublimit of $900,000) subject to an aggregate limit of $150 million. Futures and options on futures are not covered. As with all securities firms, this coverage provides protection against failure of a broker-dealer, not against loss of market value of securities.

    For the purpose of determining an Interactive Brokers LLC customer account, accounts with like names and titles (e.g. John and Jane Smith and Jane and John Smith) are combined, but accounts with different titles are not (e.g. Individual/John Smith and IRA/John Smith).

    SIPC is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:

    $150 million cap - it's pretty much pennies on the dollar.
    Excess in the retail industry is pretty much for show.
    #10     Nov 22, 2019
    Aged Learner and Nobert like this.