IB always said IB UK customers were covered.
I guess this was B.S.
Can anyone confirm one or the other ?
I guess this was B.S.
Can anyone confirm one or the other ?
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Interactive forced account migration and consequent loss of account protection
- Thread starter zorroverde
- Start date
trade2live,just bother to read the first post of this thread.There you find all explained.If you need more,just pm me.
zorroverde
zorroverde
I read it of course, but it's not very clear to me . If I understand correctly, SIPC coverage is dependent on the type of products traded. I didn't know it was the case. IB UK customers would be covered by SIPC for their US activity but say you trade mostly US equities, and occasionnaly european ETF's options or futures, which part of your account is protected by SIPC and which part depends on FSCS ?
Hi trade2live,
for the time being it will affect only non-US derivatives.After June30
(latest of several deadlines) you can only trade those if you have created/opened a special sub account (of your original US or UK-based main account).US-based derivatives of the securities sector continue to have SIPC protection,non US derivatives won't.As there seems to be no improvement (as hinted by IB) in margin requirement
I would think you get less than before...And IB is saving insurance premium with Lloyds London.
for the time being it will affect only non-US derivatives.After June30
(latest of several deadlines) you can only trade those if you have created/opened a special sub account (of your original US or UK-based main account).US-based derivatives of the securities sector continue to have SIPC protection,non US derivatives won't.As there seems to be no improvement (as hinted by IB) in margin requirement
I would think you get less than before...And IB is saving insurance premium with Lloyds London.
Quote from zorroverde:
Hi dont,
once you have signed some additional agreements,you will be covered byFSCS when trading non-US derivatives and by SIPC
when trading US ones.
A client of mine tried trading under the new U.K account type and
found that margin conditions did not improve,which was one of the arguments used to sweeten the switch.So you get a practically inexistent account protection (compared to the previous situation)
but no real benefit.IB just extended the deadline for the migration again,this time to June 30.It's possible that they mean it this time..
Zorroverde
So basically if you only trade US derivatives you are covered by SIPC?
DONT,it's not that simple.Only as long as the underlyings of the derivatives you are trading have securities character-i.e stocks and stock indices.Also the cash funds you hold for related margin requirements and equity purchases are protected..Details you find on the SIPC website...
zorroverde
zorroverde