InteractiveBrokers "hyper-hypothecates" $14.5b of Customer Funds?

That advice does not apply to IB, since you can trade everything with them.

 

IB has their timber hill market making division. Perhaps the $14.5bil in re-hypothecates is what IB uses to provide trading capital for that division.

 

You must not have read all of the information provided by the link provided by the original poster of this thread.

 

Ugh.

You're federally insured if you keep your cash in equity products and cash at IB.

 

Wonderful

 

Saico, be careful. There is prop trading going on at IB.

Look over this thread:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=230372

In which a company rep discusses just one such trade.

 

SIPC is NOT federal insurance. In any case it only covers 100k in cash and many full time traders have way more than that at IB.

 

Yes, with SIPC $400,000 in securities, and $100,000 in cash were the last figures I read about that are covered.

 

Well, only up to the limits of the SIPC insurance limits of $250K/$500K.

 

http://www.sipc.org/how/covers.cfm