How Safe are Interactive Brokers?

Discussion in 'Retail Brokers' started by LordMelbury, Nov 25, 2007.

  1. dabao91

    dabao91


    <<<
    IB sweeps excess funds in the commodities account to the securities account. Thus, the majority of client funds do not show up in the commodity reports.>>>


    OK, so WHERE (URL) we can find the total client account assests (both securities and commodities)???? Thanks.
     
    #31     Dec 24, 2007
  2. ids

    ids

    #32     Dec 24, 2007
  3. gnome

    gnome

    #33     Dec 24, 2007
  4. I'd say this is an incorrect conclusion. The Lloyds policy is intended to insure that amount in excess of the $500K SIPC insurance. So to know what exactly the Lloyd's policy is insuring, you would need to know the number of accounts in excess of the SIPC limits, and their respective sizes. If your account is under the SIPC limits then the Lloyds policy is less important. But frankly given the information that we currently know, it's impossible to tell how any specific customer would benefit from the Lloyd's policy provided your account exceeds the SIPC limits. I'd say one of the most important concerns would be the financial stability of the firm itself, because if a firm it strong enough, insurance would tend to be less important.

    OldTrader
     
    #34     Dec 24, 2007
  5. gnome

    gnome

    Sounds right. SIPC will cover the accounts =/< $500K. The additional insurance policy would cover account balances >$500K, however much that is.

    Conceptually... if "all" or "nearly all" of IB's accounts are < $500K, the additional insurance would barely be needed, if at all.
     
    #35     Dec 24, 2007