Is IB safe enough to use as a bank for > 500,000 USD?

Quote from FreakofNature:

Ya but you kind of need a broker to own the blue chip ETFs....

Or are you saying the risk lies if the cash is not invested in the brokerage account?

FoN
More...

You don't need a broker to own ETFs, you need a broker to buy them. As long as they are in your name (not 'street name') in a cash account (not a margin account), they are yours regardless of whether the broker goes bust or not.

Remember to keep electronic and paper copies of the purchase note, and your account statements, in at least 2 physically separate locations, so you can prove ownership in the event of liquidation, brokerage records being hacked or wiped etc.
 
Quote from Ghost of Cutten:

You don't need a broker to own ETFs, you need a broker to buy them. As long as they are in your name (not 'street name') in a cash account (not a margin account), they are yours regardless of whether the broker goes bust or not.

Remember to keep electronic and paper copies of the purchase note, and your account statements, in at least 2 physically separate locations, so you can prove ownership in the event of liquidation, brokerage records being hacked or wiped etc.
More...

I own a great deal of money in DIA, SPY and QQQ, all I get from IB are electronic statements.

Never seen a stock certificate or physical proof.

Since we are on the topic, are the CME futures also as safe?

FoN
 
Someone said Etrade provides extended FDIC so you can have accounts over $250k that are safe.

What diff does extended FDIC make when your account is SIPC insured which is only up to $250k cash?
 
Quote from jackpearson:

Is that excess insurance per account or across the firm in general?
More...

It is per account but there are also limits on the whole firm as described on the IB site.
 
Quote from comintel:

IB has Lloyd's excess SIPC insurance up to $30 million and is one of the safest there is.
More...

Imagine having to bail out every customer or most, there would not be enough in the global limits to support them.

FoN
 
Quote from FreakofNature:

Imagine having to bail out every customer or most, there would not be enough in the global limits to support them.

FoN
More...

True, it is mainly going to be of use in the case of isolated problems.

I think all such policies will have global limits though.

Theoretically the best thing would be to deposit T-Bills instead of cash. IB requires USD one million before they will accept them.

Some other brokers will accept t-bills in any account size.
 
You must log in or register to reply here.
Back
Top