IB customers can setup a securities sweep acct that is protected by SIPC. It appears that the default setting is not to sweep. Go to Account on your TWS . . then Manage Account, Settings, Configure Account, Excess Funds Sweep. The following is shown to select a sweep setting. This will be needed to be done on each of your accounts . . .
Your Interactive Brokers Universal Account is authorized to trade securities products, commodities/futures products and Foreign Exchange ("forex") transactions and therefore consists of two underlying accounts, a securities account governed by rules of the U.S. Securities and Exchange Commission (SEC) and a futures account governed by rules of the U.S. Commodity Futures Trading Commission (CFTC).
Whether you have assets in an IB securities account or in an IB futures account, your assets are protected by U.S. federal regulations governing how brokers like IB must protect your property and funds. In the IB securities account, your assets are protected by SEC and SIPC rules (Note: foreign currency is protected to the extent used to purchase securities). In the IB futures account, your assets are protected by CFTC rules requiring segregation of customer funds. You are also protected by IB's strong financial position and our conservative risk management philosophy. See IB's Strength & Security page.
As part of the IB Universal Account service, you have authorized IB to automatically transfer funds as necessary between your IB securities account and your IB futures account in order to satisfy margin requirements in either account.
All IB customer deposits are initially received into the IB securities account and will remain in that account unless you choose commodities sweep below.
Selecting "securities" sweep below is strongly recommended for any customer identified as a securities pattern day trader.
Regardless of your choice, IB will generally keep a small buffer of excess margin funds in each account in order to prevent excessive transfers back and forth as your margined securities and futures positions fluctuate in value.
Please select a sweep method:
Do not sweep excess funds
Sweep excess funds into my IB securities account
Sweep excess funds into my IB commodities account
The following 2 users say Thank You to bob5e for this post:
I was under the impression all accounts are frozen so I didn't even ask. I would imagine if they allowed people to withdraw funds there would be a mass exodus. I just called again and spoke to Neal (broker). He confirmed that all accounts are frozen and now that it is going to court, it could be a long time before any of us see a resolution. We all know how long things take when the courts get involved.
Looks like there will be 200 or 300 more people going on unemployment!! None of them will be getting a paycheck as of yesterday.
Neal also told me that they were ordered to liquidate all positions because they were afraid if clients with open positions weren't watching it and they lost more money, then that would mean even fewer funds in the coffer.....so PFG didn't wait for anyone to liquidate their open positions.....they went ahead and liquidated the positions on behalf of their clients.
Last edited by brevco; July 10th, 2012 at 03:59 PM.
PFGBest's Canadian Clients' Money Is Accounted For-Canadian Regulator
--PFGBest's Canadian clients have their money accounted for - Regulator
--Canadian clients can liquidate their positions and prepare for a bulk transfer to new firm
--RJ O'Brien's Canadian unit named as new firm by regulator
By Tatyana Shumsky
NEW YORK--PFGBest's Canadian clients have their funds accounted for and are approved to transfer their futures accounts in bulk to a new firm, Canadian regulator Investment Industry Regulatory Organization of Canada (IIROC) said Tuesday in a statement.
Peregrine Financial Group Canada, Inc., a unit of embattled futures and currency brokerage PFGBest, isn't subject to or affected by the regulatory actions of the National Futures Association, a U.S. futures industry self-regulatory body, IIROC said.
"It appears that all clients monies and assets are accounted for at the Canadian subsidiary," IIROC said in a statement.
"Clients can liquidate their contract positions directly through Peregrine Financial Group Canada," it added.
The Canadian regulator has named RJ O'Brien & Associates Canada Inc, a unit of RJ O'Brien, as the recipient of the bulk transfers from PFGBest's Canadian unit.
Write to Tatyana Shumsky at email@example.com
I think it might be time to create a thread to help the small retail trader on how to do this type of research, what to ask etc. In any case, i thank you for reminding us some obvious considerations. BTW, i wonder what Mattz from optimus think about all this fiasco.
If what we are hearing is true someone in PFG pilfered segregated funds. Most likely the reason all accounts were frozen by the regulators was to keep any money left from going out into a Swiss bank account. They freeze everything until they can figure out what is going on. IMO it is not about keeping a mass exodus from happening because according to what is being report there is only $5 mil of $200 mil plus left in segregated accounts. Meaning there is no money for customers to withdraw allegedly.
Hopefully the money has not been washed out in losses but was moved and can be traced and recovered. Really feel for all involved. I had a PFG account at one time but left because their feed was so horrendous. Could have just as easily been me.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."