When the credit market is in distresss and banks and brokers are hit by subprime mess left and right?
FDIC IS VERY SECURE.. IT BACKED BY THE GOVERNMENT. FOR MAX 100K IF THE GOVERNMENT CANT BACK YOU, THAT WILL MEAN THERE IS NO PLACE LEFT ON THE PLANET THAT CAN PROTECT YOU.. YOU WONT NEED MONEY ANYMORE AT THAT POINT.. BETTER GET YOU BO AND ARROWS READY TO GET YOUR DINNER
Yup. Most firms have "excess SIPC", that's insurance from 3rd parties, not covered by SIPC. That could be interesting too. Cash & positions can be ties up for days, weeks or months if SIPC steps in. So you are insured but you don't want to be involved in one of these. kny 3
Maybe not. Depending on what's left over, you may get $0.60 or $0.92 on the dollar for amounts over $100k. But they may have to sell the assets, that could take months or a year or two. kny 3
What if you have positions that must be closed, e.g. expiring options, and you can't while your broker is going under and SIPC is taking over?