Interactive Brokers Expands FDIC Coverage for Clients

Interactive Brokers expands FDIC coverage by launching the Insured Bank Deposit Sweep Program, which enhances the security of its clients’ funds starting May 27, 2025. The program provides significant additional protection for IBKR Pro clients with individual, IRA, or organizational accounts.

With this new program, clients can now benefit from up to USD 5.0 million in Federal Deposit Insurance Corporation (FDIC) coverage for free cash balances in their brokerage accounts. Moreover, joint account holders receive even greater protection, up to USD 10.0 million, on their free cash balances.

This new layer of security adds to the existing coverage provided by the Securities Investor Protection Corporation (SIPC), which already insures the first USD 250,000 in a brokerage account. Therefore, clients with individual accounts now enjoy a combined insurance limit of USD 5.25 million, while joint accounts can access up to USD 10.25 million in total coverage. 

Interactive Brokers Expands FDIC Coverage for Clients

These expanded safeguards reflect Interactive Brokers’ ongoing commitment to client protection. Importantly, the new program integrates smoothly with existing account features. There are no changes to how clients access or use their funds, and trading capabilities across various financial instruments, such as stocks, options, futures, currencies, and bonds, on more than 160 global markets remain unaffected. 

Additionally, clients will continue to earn competitive interest on their balances, ensuring that security enhancements do not compromise returns. Any cash balances that exceed the insured limits will still be protected under the SEC’s Customer Protection Rule 15c3-3.

These funds are safeguarded by the firm’s robust equity capital, offering clients further peace of mind. Transitioning into this program comes at no additional cost and requires no action from the client. With this strategic move, Interactive Brokers reinforces its role as a forward-thinking brokerage firm dedicated to both innovation and financial security.

Getting to Know the Stock Broker 

• Interactive Brokers offers competitive fees and global trading options. 
• Also, the platform is user-friendly and cost-effective, with competitive spreads. 
• It also provides a straightforward trading experience for diverse needs. 
• Traders and investors can access a wide range of assets. 
• Novices may need time to master its robust tools. 

Also, check out Stock Brokers Reviews for the latest enhancements and take your trading to the Next level!