At what point do you millionaires split up your funds and manage different brokerage accounts?

a friend of yours... hm..

SIPC limit is 500k, but the big brokerage houses all have additional insurance so it really shouldn't matter.. just spread them around as you see fit..
 
FDIC insures bank holdings 250k per account, account holder. SIPC will cover 500k total (250k cash and 250k securities). SIPC does not cover futures accounts.
 
When another firm has some expertise that your existing firm doesn't possess. You are an equity owner and you want someone with muni bond skills your current broker doesn't have. Forget about brokerage firm excess coverage - it has a firm cap. If your big enough where SIPC becomes irrelevant you hold your positions away from the brokerage house.
 
If this Futures trader wants to keep his funds fully invested as he has experienced an unexpected windfall with his Futures trading....does he leave it all at AMP for example? Do I suggest to him to put some at IB?..Dorman?...what if he leases his own seat at the CME?...do those retail firms accomodate him?

I am surprised I cannot point him to a thread here...this is EliteTrader right?
 
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The more money you have the less brokers you need. Only the small guys constantly switch and try everything to find best broker for the future when they’ll have more money.
While you can use sub-accounts for whatever purposes you may want.
 
ETJ said:
When another firm has some expertise that your existing firm doesn't possess. You are an equity owner and you want someone with muni bond skills your current broker doesn't have. Forget about brokerage firm excess coverage - it has a firm cap. If your big enough where SIPC becomes irrelevant you hold your positions away from the brokerage house.
More...

what -

e.g. IB covers additional $30m... Fidelity covers $1b, why is this irrelevant..
 
IB is capped at $150 million last time I looked and if you don't think a $1B is chump change at Fidelity you are sorely mistaken. All the excess insurance used to be written by Lloyds - so it is truly irrelevant.
 
Account Protection

Customer securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sublimit of $250,000) and under Interactive Brokers LLC's excess SIPC policy with certain underwriters at Lloyd's of London 1 for up to an additional $30 million (with a cash sublimit of $900,000) subject to an aggregate limit of $150 million. Futures and options on futures are not covered. As with all securities firms, this coverage provides protection against failure of a broker-dealer, not against loss of market value of securities.

For the purpose of determining an Interactive Brokers LLC customer account, accounts with like names and titles (e.g. John and Jane Smith and Jane and John Smith) are combined, but accounts with different titles are not (e.g. Individual/John Smith and IRA/John Smith).

SIPC is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:

http://www.SIPC.org
http://www.finra.org/InvestorInformation/InvestorProtection/SIPCProtection/index.htm

$150 million cap - it's pretty much pennies on the dollar.
Excess in the retail industry is pretty much for show.
 
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