Interactive Brokers - SIPC protection for Currency and Futures Trading account

Discussion in 'Retail Brokers' started by Gcapman, Dec 14, 2010.

  1. Gcapman


    I want to open an account this week for currency and futures trading.

    One quick question: (copy and paste from their website)

    Customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.

    What does "periodically" mean? I plan to swing trade for a few days

    Please advise. Many thanks in advance!
  2. JackR


    Periodically means whatever the lawyers want it to mean. It is an ambiguous term. However, I trade futures via IB and in general (also an ambiguous expression) the money is moved no later than the night of the day after the trade. Trade on the 13th, move on the 14th.

  3. Gcapman


    So it's not every 15th of the month then?

    It's somewhat frequent -- usually after your trade exits...

    That's not a bad deal......

    How do you like IB so far??

    Cheers in advance!!