Question for those with more than $100,000 in their accounts.

Discussion in 'Professional Trading' started by Pooks, Nov 4, 2007.

  1. Pooks


    Does it concern you that as far as I know all brokerage accounts or only FDIC insured up to $100,000.

    If any thing disasterous happens, everything extra would be lost?
  2. There are ways to have additional amounts over the $100,000 protected through other means. My advice would be to talk with your broker and ask them what options they provide for protection of amounts over the $100,000 threshold. This is not a difficult situation to address as you will find have options.
  3. $100,000? You're asking at the wrong place :D

    Besides, if true disaster strikes where major brokerages fail, you can wipe your ass with those Greenbacks anyway. Heck, after a few more rate cuts, Uncle Ben will make that a viable alternative to using toilet paper.
  4. lol you need to study your info more. its not fdic insurance. its called sipc ins which is not as safe as fdic as its not backed by the gov't. most insurers like penson cover another $30 mil per account. so if you have 3 accounts with penson clearing threw 3 different brokers each account is covered by the sec for 500k securities and 100k most brokers like penson insure a aggregate for the entire clearing house. so above the 500k securities and 100k cash its hard to know what excess you'll recover
  5. You are right...
    But SIPC steps in ONLY if a US broker-dealer fails and cannot cover Customer accounts.

    ONLY retail Customer accounts are covered...
    So if you have ANY type of "partnership" arrangement...
    You can only sue via the US court system.

    There are 5,000 US broker-dealers...
    And each year only about 0.1% or five (5) require SIPC to step in...
    So you have a better chance of winning a lottery...
    Then needing to be bailed out by SIPC.

  6. OBVIOUSLY you are not familiar how retail brokerage accounts work. They are unlike your checking and savings deposit. Here is info posted from website. Other brokers have smiliar arrangements and you can research that :

    "TradeKing is a member of the Securities Investor Protection Corporation (SIPC), which provides coverage for accounts up to $500,000, including $100,000 for claims for cash. Through a policy with Lloyd's of London, TradeKing offers you an additional $24.5 million (including up to $900,000 in cash) per client. This brings the total protection to $25 million with a limitation of $1 million on claims for cash balances for each client.

    Coverage does not protect against loss from transactions or trading losses or declines in the value of securities. "