Is cash no longer fully insured in an IB account ?

The fact that IB didn't give clients at least 30 days notice to close their accounts from the fact their futures positions are no longer insured supports my thesis theives have honor. How can SIPC name be on IB website since your 'univesal' account is not insured in the futures account.

I'm suspecting that there is no such thing as a 'universal' account. and cash in ibd was never insured.

And IB making an offer to buy mf global a few days on the weekend it wen bankrupt? it's hogwash. IB was probaby and counter party risk or something. nobody goes and makes an offer to buy another company over the weekend.

blame finra and SEC for allowing such b.s. advertising,,there is no such thing as a universal account.and your money is not segregate ,,in other words it's a LIE or deception. old fashion LIE!


Quote from Damrak:

IB used to transfer amounts from commodities to securities very quickly after you had closed futures positions.

Since a few days this is no longer happening.

As the commodities part of your account isn't insured by SIPC, has the risk for traders increased in an IB account ?
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Do you know how big a deal is?

It means your cash in futures is not insured and your account may not be insured if firm become insolvent like MF global since these firms use your cash to trade the market.

if firms loses money, the exchange takes the money from the brokers clearing account. that money is client money..that is the missing money..the money is loss to the wall street casino..the money is not missing it's transferred to pay for debts...all debts must be 'settled' in the exhange. the money is gone. or lost. MF global lost clients money.


Quote from Damrak:

IB used to transfer amounts from commodities to securities very quickly after you had closed futures positions.

Since a few days this is no longer happening.

As the commodities part of your account isn't insured by SIPC, has the risk for traders increased in an IB account ?
More...
 
no FCM insures futures account because futures is too leverage and risk like 90% leverage okay

nobody will insure it. and the gov't couldn't care less about insuring a casino in zero sum game.

the fact is retail traders will lose their money from market losses than loss from firm insolvency.

and if it's hedge funds it's house money they lose if firm goes insolvent.

IB is the only retail firm that sells it's futures unversal account or cash as insured by the SIPC, sweeping was the technical loophole to say it's 'insured' when if argued it is not really insured. and sipc is pizzzed that they are insuring money at risk in futures market.


Quote from Damrak:

IB used to transfer amounts from commodities to securities very quickly after you had closed futures positions.

Since a few days this is no longer happening.

As the commodities part of your account isn't insured by SIPC, has the risk for traders increased in an IB account ?
More...
 
it's advertising fraud.

your tell customer it's insured than change it in a day's notice saying it's now unisured.

and they dont' even sweep anymore?

sipc and finra should never have approved these universal accounts as futures accounts in most FCM are not insured for good reason...look at MF global,,it's insolvent from bad bets.


Quote from oldtime:

I think It's pretty obvious. The days of keeping it all at one account like IB advertises it, "One account for stocks bonds options futures and forex" are over.

One account for trading, one for buy and hold, one for income and hopefully they all don't even use the same bank.

You give up a little in convenience and a little in margin buying power and you gain a little if things go bad.

IB's failure to sweep doesn't indicate to me things are getting better.

I'm dealing with enough risk as it is without also having to worry about the broker.

And like the man said, two trading accounts so you can at least offset is probably an expensive but maybe a neccessary precaution.
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Quote from ammo:

it's a backup plan for the big banks, they have created a loophole where they can take your money and not be prosecuted, if the market had a fallout,and their was a huge loss for the longs and a huge win for the shorts,they could keep all the winnings...they have DC backing up the marginal insurance,all the wondering about the smaller details is a moot point,the loophole has been exposed,DC knows about it and instead of closing it which would mean they are doing their job,working for those who elected them,they are not working for us,and the loophole will only be addressed with double talk,they have created an outfit,monster,the sopranos .. DC needs to be demo'ed,new dry wall ,new fixtures,new tile and new toilets,it reeks...vote non dem..non rep..
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Quote from Options12:

Comintel, fyi on foreign subsidiary coverage -- from the document below it looks like the SIPC excludes customers of foreign subsidiaries.

"(C) EXCLUDED PERSONS
The term ‘customer’ does not include any person, to the extent that—
(i) the claim of such person arises out of transactions with a foreign subsidiary of a member of SIPC;"

Page 66, From http://www.sipc.org/pdf/Securities ...act+1970&order=r&id=6078d2a2cc4082ac&cmd=xml:

But maybe IB has a different arrangement due to their clearing method.

From IB Canada website http://www.interactivebrokers.ca/en/p.php?f=marginCA:

"Universal AccountSM

Although the Universal AccountSM should be viewed as a single account for trading and account monitoring purposes, for regulatory and segregation purposes, there exists a separate securities and commodities account. If there is a margin deficiency in either your securities or commodities account, cash will be transferred to cover the margin deficiency. At the end of each day, any excess cash in your commodities account will be swept to your securities account, where it is covered by the Securities Investor Protection Corporation (SIPC)"
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Hmm that's interesting - there may be a contradiction there unless as you say there is an interpretation that the transactions are with IBM LLC, not IB Canada.
 
Quote from oldtime:

IB's failure to sweep doesn't indicate to me things are getting better.
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I agree.

However, I view it as a longer-term positive step as it peels back one more layer of the implied subsidies speculators have been living off.
 
Quote from tradershonor:

it's advertising fraud.

your tell customer it's insured than change it in a day's notice saying it's now unisured.

and they dont' even sweep anymore?

sipc and finra should never have approved these universal accounts as futures accounts in most FCM are not insured for good reason...look at MF global,,it's insolvent from bad bets.
More...

I took IB-AN's response earlier to say that the ability to sweep fully would be restored within the next couple of weeks as a user option.

Maybe what they are really saying here is "Choose the option of sweeping if you want, but it won't be the default any more and it is uncertain if it will be acceptable to the SIPC."

But I agree that the whole notion of "Universal Account" may be open to question as far as SIPC insurance.
 
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