Account Protection per account or per person

[Alver]

Hello,

I could not find this info on the site or it is not clearly stated. I have two similar accounts on IBKR and in total they exceed $500k. Do I have SIPC protection of $500k for each account or it is only per person?

If it is per person and I open an account for my wife, would that provide me $500k protection for each of us?

 

[rb7]

Multiple accounts are combined.
See here (from a 2-minute Google search):
https://www.sipc.org/for-investors/investors-with-multiple-accounts

 

[BMK]

Do I have SIPC protection of $500k for each account or it is only per person?

SIPC only protects you if the broker fails.

Do you really think that's a possibility?

I think you can have another account that is not subject to the combined limit if it is a business entity, such as an LLC, or a trust.

 

[Alver]

Thanks. I will probably open another one on my wife name or joint account.

On broker failure - after Lehman Brothers, Enron, AA, one cannot be sure it won't happen to any other "too big to fail" companies.

 

[Alver]

Multiple accounts are combined.
See here (from a 2-minute Google search):
https://www.sipc.org/for-investors/investors-with-multiple-accounts

Thanks a lot, this is very helpful!

P.S. please note that when you google from African country (where I am now) you do not get the same search results as in the US.

 

[newwurldmn]

Thanks. I will probably open another one on my wife name or joint account.

On broker failure - after Lehman Brothers, Enron, AA, one cannot be sure it won't happen to any other "too big to fail" companies.

i don’t think a single deposit holder lost with Lehman.

 

[Alver]

even if someone had cash above FDIC protected amount?

i am just trying to stay below $500k of SIPC protection to be on the safe side.

 

[BMK]

Thanks a lot, this is very helpful!

P.S. please note that when you google from African country (where I am now) you do not get the same search results as in the US.

Interesting... You should use a VPN, and choose an IP in the USA.

 

[newwurldmn]

even if someone had cash above FDIC protected amount?

i am just trying to stay below $500k of SIPC protection to be on the safe side.

Yeah. Hundreds of banks go under in the US every year. FDIC And SIPC never have to pay out. The capital requirements and audit requirements are super strict. Shareholders get wiped out. Bond holders get wiped out. But depositors get absorbed in some merger of convenience.

you may not be eligible for SIPC or FDIC as a foreign account holder. I’m don’t know.