How is this diff from the SIPC protection you get if you are with IB USA or FCA coverage if you are with IB UK?
There is a page on IB's website which explains how it works in the US: https://www.interactivebrokers.com/en/index.php?f=27462#t-sweepprogram A partial quote from this: An example: suppose you have 700 k USD in cash in your IB account. The first 250 k USD is covered by FDIC at IB. The remaining 450 k USD will now be spread over two other banks: 250 k USD at bank A and 200 k USD at bank B. Banks A and B have FDIC protection on these cash amounts (because each is less than 250 k USD). So now your total 700 k USD cash is protected by FDIC.
IB UK accounts do not really "exist", your account is with IB US if you opened an account with IB UK and - I might be wrong - but I believe your deposits not covered by FCA. Different story if you have an account with IB EU.
Yes but my whole point is that IB UK does not hold your cash…it is IB US. IB UK only acts as a facilitator to open your IB US account, assets (except metals and cfd) are held there. United Kingdom Interactive Brokers (U.K.) Limited Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances. Your account is cleared and carried by Interactive Brokers LLC and for certain limited products by Interactive Brokers (U.K.) Limited. Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC (www.sipc.org) compensation scheme. Interactive Brokers (U.K.) Limited is authorised and regulated by the FCA and regulated products are covered by the UK FSCS. Certain financial products are not suitable for all investors. Customers should read the relevant risk warnings before investing. Your capital is at risk and your losses may exceed the value of your original investment. Got it?
I did not get the last sentence - does it refers to Interactive Brokers LLC or Interactive Brokers (U.K.) Limited? As far as i know, my account is managed by former about but because URL says co.uk at the end, we call it UK. It is covered by SIPC and now FDIC for cash over $250k. Can you confirm that the last sentence refers to LMT version or explain it more clearly.
I wonder how it works for account above $500k with small cash. Why IB does not offer something like that for such accounts as well. For example, if i have $700k worth account and let's say $650k invested into stocks and $50k is cash. Because SIPC covers only $500k, if something happens i may lose some of my assets. And, it is interesting which part of assets i would lose - $150k in stocks and $50k cash. I could not find answer to this question on IB. Any ideas?
what is the LMT version? Your cash and assets are with IB LLC even if you have an “IB UK account”. Proof is that when you wire new money into the account you wire it to IB LLC, not IB UK
LMT for limited. Yes, i say the same thing and it is good, but URL for IB where i am registered ends with co.uk. Who cares - i am happy it is tied to US and i have SIPC and now FDIC coverage. The last sentence was not clear on your previous email.
There is a difference between a cash position at IB and other assets. Your stock positions are not in IB's name. So if IB would go bankrupt those stock positions would not be affected. Your cash position would be affected. That's why there are these insurance systems in place specifically for cash positions.