Interactive Brokers Boosts Cash Protection with New FDIC Sweep Program

Interactive Brokers adds FDIC sweep program, boosting insured cash coverage to $5.25M for individuals, $10.25M for joint accounts.

Key Points:

• New FDIC Insured Bank Deposit Sweep Program offers up to $10.25M in total cash protection for eligible accounts.
• Trading features and interest earnings remain unaffected, with full access to global markets retained.

Interactive Brokers LLC has introduced a new layer of financial protection for its IBKR Pro clients, offering significantly expanded insurance coverage for cash held in brokerage accounts. The launch of the Insured Bank Deposit Sweep Program, effective May 27, 2025, gives eligible individual, joint, IRA, and organizational account holders added peace of mind through enhanced Federal Deposit Insurance Corporation (FDIC) coverage.

Interactive Brokers Boosts Cash Protection with New FDIC Sweep Program

Under this new program, individual and institutional accounts are eligible for up to $5.0 million in FDIC insurance on free cash balances. Joint accounts may receive up to $10.0 million in coverage, a substantial increase from standard limits, offering one of the highest levels of insured cash protection available in the brokerage industry.

This coverage is in addition to the $250,000 of Securities Investor Protection Corporation (SIPC) insurance, bringing the total potential coverage to $5.25 million for individual accounts and $10.25 million for joint accounts.

The new sweep program works by allocating client cash to FDIC-insured banks, where it receives protection under FDIC limits per depositor, per bank. Importantly, Interactive Brokers assures clients that this additional safeguard will not affect existing account features or restrict access to trading capabilities. Furthermore, clients will continue to earn competitive interest and retain full liquidity to trade stocks, options, futures, currencies, and bonds across over 160 global markets.

Also, any balances exceeding the insured limits will remain protected under the SEC Customer Protection Rule 15c3-3, backed by Interactive Brokers’ robust equity capital.

This move underscores Interactive Brokers’ commitment to enhancing client asset safety while maintaining the flexibility and global reach that professional traders and investors expect.

For more details, clients are encouraged to visit the Interactive Brokers website or consult with their client service representative.

Also, visit the Stock Broker Talks website for more insights and Reviews.