Is cash no longer fully insured in an IB account ?

Discussion in 'Retail Brokers' started by Damrak, Dec 27, 2011.

  1. Damrak

    Damrak

    IB used to transfer amounts from commodities to securities very quickly after you had closed futures positions.

    Since a few days this is no longer happening.

    As the commodities part of your account isn't insured by SIPC, has the risk for traders increased in an IB account ?
     
  2. are you sure about this?
     
  3. def

    def Interactive Brokers

    The policy has not changed, excess cash is still swept at days end to the securities account. Are you sure you're not referring to ending settled cash? Send me a PM if you want me to look into your specific case. Otherwise, do an online chat and the CS rep should be able to walk to you through things and provide additional comfort.
     
  4. Sorry Def, but you are wrong. The IB policy on moving cash has changed for now. Even with no futures position for multiple days my commodities cash has been stuck in my commodities account.

    I called IB customer service last week and after checking with his supervisor the IB CS rep said that management changed the cash movement policy for now and it was under review. I told the rep to tell management that this change in policy would make many IB customers very displeased. As IB has touted for years SIPC coverage for all unused cash, a changed cash movement policy will go over like a crushed lead balloon.
     
  5. def

    def Interactive Brokers

    Hmmm. I spot check a few statements from the 23rd and cash was swept. There have been a bunch of holidays in my neck of the woods so perhaps I missed something sent internally. I'll look into it.
     
  6. Nick29

    Nick29

  7. Many customers might be 'very displeased' but perhaps there is nothing IB can do about it.

    As perhaps SIPC no longer approve of the practice of sweeping in every case.

    Perhaps they will only approve if the customer does mostly securities trading with just the occasional non securities trade.

    Personally i never do any securities trading, it is all futures, i dont expect SIPC to bail me out, even if IB swept my funds before any bankruptcy.
    I got a strong feeling that the SIPC appointed bankruptcy trustee would wriggle out of paying me (under SIPC) on the basis that my trading was predominantly NOT securities trading.
     
  8. I have a rather big account at IB and all that stuff of the last months posting here about IB's actions and them making trades (like buying MF Global shares) makes me very nervous.

    What are the alternatives ? I'm looking for brokers who deal with securities.
     
  9. rcj

    rcj

    IB has NOT moved 3600+ from my comm acct. for 7 or 8 business
    days. No trades for at least one cycle before that.

    i put in a trouble ticket yesterday.

    Maybe a "rule" change.
     
  10. Daal

    Daal

    It looks like its the result of the all the idiots who think hyperhypothecation brought MFG down. Congratulation retards, you got what you wished for
     
    #10     Dec 28, 2011