IB good customer service

JSOP · May 6, 2018

eves_banished_children said:
I think some brokers try to account for it.

IB, for example, on their website they say that they distribute your account cash out to different banks so that you don't hit the FDIC limit on any one bank. That does require you to interact with them and black list banks that you already have money in, however, because the only way they know to avoid it with your account is to tell them to avoid it. Not advice, or recommendation, just an observation of their website.

Edit, it looks like an optional program you can join with IB called the Insured Bank Deposit Sweep Program.

Yeah but you will still hit the SIPC limit. Hard to imagine that there are institutions that actually trade with IB as well as so advertised by IB. How do they manage these account limit issues?

eves_banished_children · May 6, 2018

JSOP said:
Yeah but you will still hit the SIPC limit. Hard to imagine that there are institutions that actually trade with IB as well as so advertised by IB. How do they manage these account limit issues?

Really, you all could just go read their website.

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.