how do you insure funds in your trading account?

[isaac000]

Quote from jeb9999:

Customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash).

Is that amount for every individual account?

 

[Bernard111]

Quote from dandxg:

I am not sure as I am a US citizen holding only USD at this point. I wouldn't think they holding bank would be different because on the wire instructions I have only seen one?

For example you can see different banks for different currency at Velocity web site.

 

[jeb9999]

Quote from isaac000:

Is that amount for every individual account?

From http://individuals.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc

Customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.

This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloyd’s policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million.

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

 

[isaac000]

Quote from jeb9999:

From http://individuals.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc

Customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.

This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloyd’s policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million.

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

I have been with IB for 5 years, and this is the first time I heard about this. Good info! Is every universal account covered by Lloyd’s policy?

 

[jeb9999]

Quote from isaac000:

I have been with IB for 5 years, and this is the first time I heard about this. Good info! Is every universal account covered by Lloyd’s policy?

I would suggest that you spend some time reading the wealth of information on the IB website.

More financial information about IB is contained in their quarterly earnings reports and can be found using the SEC's EDGAR system.

 

[Bernard111]

Quote from Bernard111:

Often the bank that holds the segregated funds is different according to the currency you open the account with your broker/ FCM: so are foreign currencies deposited in a US-based futures account protected at the same way as in USD?
:eek:

Anyone knows something about this?

 

[piggie2000]

the info that started this thread is not correct. you can't take a treasury in your name and put it in a brokerage account and trade against it. IN ORDER TO TRADE USING THE TREASURY AS COLLATERAL IT MUST BE IN STREET NAME. thats the only way the broker can liquidate it if you got a margin call and can extend you margin against it. the advantage of putting your money in a treasury and trading against it is its considered a security and not cash so you get the 500k sipc protection at all times and not just 100k as your cash sits there. they need to rasie the sipc cash portion to 500k as 100k cash is nothing. many old timers have millions in mer accounts and little do they know they're not insured

 

[ML_QUANT]

Quote from piggie2000:

the info that started this thread is not correct. you can't take a treasury in your name and put it in a brokerage account and trade against it. IN ORDER TO TRADE USING THE TREASURY AS COLLATERAL IT MUST BE IN STREET NAME. thats the only way the broker can liquidate it if you got a margin call and can extend you margin against it. the advantage of putting your money in a treasury and trading against it is its considered a security and not cash so you get the 500k sipc protection at all times and not just 100k as your cash sits there. they need to rasie the sipc cash portion to 500k as 100k cash is nothing. many old timers have millions in mer accounts and little do they know they're not insured

Based on your post then having T-Bill rather than cash would also take care of the problem if trading futures etc the insurance does not apply since all of the funds are considered to be security and you'd be trading futures using borrowed money?

 

[TraderZones]

Quote from igotworms:

i am curious as to what other traders do to insure their funds in trading accounts. i have multiple accounts with 300k to 600k in each, any thoughts or suggestions. most days i end the day flat.

IB lets you hold your funds in one of several different foreign currencies, such as Swiss Francs.