Which brokerages do people with deep pockets use? Say you have $5MM at any given time invested in various securities. Standard SIPC limit is $500K so you need more than that. So what do you do?
That's only for cash. If your money is in securities then it shouldn't matter what happens in case broker goes bankrupt.
This is not true. SIPC coverage comes in when brokerage is bankrupt. SIPC is 500K for securities and 250K for cash. My question is what if you have $5MM in securities and the brokerage goes bankrupt. Then what do you do? Are there any brokerages with additional coverage on top of the SIPC?
1) Fidelity's excess of SIPC policy is $1 billion, but there is a per customer limit of $1.9 million on coverage of cash awaiting investment. 2) TD Ameritrade provides each client $149.5 million worth of protection for securities and $2 million of protection for cash 3) Interactive Brokers provides client with $30 million of protection (including $900,000 for cash)
I believe the brokers go into the specialty insurance markets and buy policies for those amounts... They are as good as the policy that backs them...Thinking AIG 2008-2009.