Insurance differences between brokerages

February 23rd, 2015, 12:41 PM

Does anyone know if the differences between the amount of insurance you get on a futures account differs between brokerages or is it all the same? Right now I'm assessing Tradestation, OEC and Options Express. Would you guys say your funds are approximately as safe in either one or are there differences? I've read the site pages on fund safety and honestly can't tell what I'm reading! Haha!

February 23rd, 2015, 01:45 PM

There is no SIPC insurance on futures accounts, only FDIC coverage on segregated funds is possible (will be paid to a broker or an administrator in case of bank collapse). You are not protected by any insurance from brokerage failures.

February 23rd, 2015, 04:11 PM

A broker like IB can sweep excess funds into a securities account, which will have SIPC.

https://www.interactivebrokers.com/en/software/am/am/manageclients/excessfundssweep.htm

Mike

Insurance differences between brokerages

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Insurance differences between brokerages