SIPC protection in IB

N

Nasdaq5048

The agrregate is 150M. Is that enough to cover all IB customers?

If bear and man and IB all go bankrupt, do each firm still get 150M or will the money run out? If so, is the first one to go bankrupt gets more protection?
 
Quote from Nasdaq5048:

The agrregate is 150M. Is that enough to cover all IB customers?

If bear and man and IB all go bankrupt, do each firm still get 150M or will the money run out? If so, is the first one to go bankrupt gets more protection?
More...

I'm not aware of any $150 million limit on SIPC. The limit is $500K ($100K cash) per customer. If you read that somewhere, please provide a link.

OldTrader
 
Quote from Nasdaq5048:

The agrregate is 150M. Is that enough to cover all IB customers?

If bear and man and IB all go bankrupt, do each firm still get 150M or will the money run out? If so, is the first one to go bankrupt gets more protection?
More...

Firms can go bankrupt, but as customer accounts are "segregated" from firm assets, the demise of the firm SHOULD not result in a loss for customers... maybe some delay and hassle in getting the mess cleared up, however.

SIPC insurance is for "missing securities and/or cash".
 
Quote from OldTrader:

OK, well go read your own link. You misread it. SIPC is as I said. IB also has Lloyds policy subject to an aggregate of $150 MM.

OldTrader
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So SIPC has no limit? and as long as our account is under 100K in cash and 500K in equities, we are completely covered??

If thats the case, i am pretty comfortable
 
Quote from OldTrader:

I'm not aware of any $150 million limit on SIPC. The limit is $500K ($100K cash) per customer. If you read that somewhere, please provide a link.

OldTrader
More...

OLdTrader,

The Lloyd's insurance covers excess cash over 100K doesn't it?

Thanks!
 
Quote from IB Email:

Dear IB Customer:

During the last few weeks we have been running an advertisement in the Wall Street Journal regarding the safety of moving money to Interactive Brokers. We want all of our customers to know that every word of this advertisement remains true and accurate. We are proud of our prudent and conservative policies that protect our clients' assets.
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Oh its written down in an advertisement? Now I feel so much better.
 
IB send email linking to wsj ad
http://www.interactivebrokers.com/download/IB08-102.pdf


Don’t Take Chances
Investors concerned about deteriorating credit markets, looming write
downs by brokers, the mishap at MF Global, rumors of hedge fund
liquidations and counterparty credit risk should consider moving their
accounts to Interactive Brokers.
For 30 years, controlling and avoiding risk has been the primary
consideration in building our automated dealing and brokerage systems.
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Interactive Brokers does not take positions in over the counter securities,
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by continuously enforcing limits for each account, and it automatically
liquidates positions if any individual account violates its limits at any time.
 
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