SIPC protection in IB

Discussion in 'Retail Brokers' started by Nasdaq5048, Mar 17, 2008.

  1. The agrregate is 150M. Is that enough to cover all IB customers?

    If bear and man and IB all go bankrupt, do each firm still get 150M or will the money run out? If so, is the first one to go bankrupt gets more protection?
  2. I'm not aware of any $150 million limit on SIPC. The limit is $500K ($100K cash) per customer. If you read that somewhere, please provide a link.

  3. Firms can go bankrupt, but as customer accounts are "segregated" from firm assets, the demise of the firm SHOULD not result in a loss for customers... maybe some delay and hassle in getting the mess cleared up, however.

    SIPC insurance is for "missing securities and/or cash".
  4. So SIPC has no limit? and as long as our account is under 100K in cash and 500K in equities, we are completely covered??

    If thats the case, i am pretty comfortable
  5. I don't know.

    It's not that comforting that IBKR is down 19% on the day.
  6. pkts



    The Lloyd's insurance covers excess cash over 100K doesn't it?

  7. GTS


    Oh its written down in an advertisement? Now I feel so much better.
  8. just21


    IB send email linking to wsj ad

    Don’t Take Chances
    Investors concerned about deteriorating credit markets, looming write
    downs by brokers, the mishap at MF Global, rumors of hedge fund
    liquidations and counterparty credit risk should consider moving their
    accounts to Interactive Brokers.
    For 30 years, controlling and avoiding risk has been the primary
    consideration in building our automated dealing and brokerage systems.
    Other than cash and one day forwards foreign currency transactions,
    Interactive Brokers does not take positions in over the counter securities,
    including mortgage related or other collateralized debt obligations or
    swaps of any kind.
    In addition to foreign exchange, we trade only exchange listed products
    that are cleared through central clearing houses and are marked daily to
    external closing prices disseminated by the exchanges.
    Our proprietary positions and resulting payables and receivables are
    reconciled against external sources daily. Our real-time margin system
    prevents the execution of orders for accounts with insufficient margin
    by continuously enforcing limits for each account, and it automatically
    liquidates positions if any individual account violates its limits at any time.
    #10     Mar 17, 2008