Global Advisers provides comprehensive management program designed to help clients do more with their cash. We offer cash balancing and management services, advice on how to manage better your cash, and for clients with idle cash of more than $100,000, we offer the following program.
Our Insured Bank Deposit Sweep Program allows eligible clients to obtain up to $2,500,000 of FDIC insurance in addition to existing $250,000 SIPC coverage for total coverage of $2,750,000. Clients continue earning the same competitive interest rates currently applied to cash held in their accounts. Our custodian sweeps each participating client’s free credit balances daily to one or more banks, up to $246,500 per bank, allowing for the accrual of interest and keeping within the FDIC protected threshold. Cash balances above $2,750,000 remain subject to safeguarding under the SEC’s Customer Protection Rule 15c3-3, backed by the firm’s equity capital, which exceeds $6 billion1.
- Competitive interest rate, same as for cash deposits in your account
- Convenience of having your account cash balance, FDIC-insured deposits and investments appear on one statement
- Excess cash above the program limit of $2,500,000 is protected under client protection regulations. Competitor programs often include a spill-over bank for excess funds, which may not be FDIC-insured.
- Individual accounts without a designated transfer-on-death beneficiary, IRAs, and organizational accounts are eligible to participate in the program.
- Eligible clients will be contacted by their investment manager. You will be able to enroll in the program by logging into your account and accessing “Insured Bank Deposit Sweep Program” under the account settings option. Activation generally takes place overnight.
How it works
- When you join the Insured Bank Deposit Sweep Program, deposits are made on your behalf into interest-bearing accounts at one or more FDIC-insured banks within the program. If your program balance nears the FDIC limit at one of these banks, additional cash is deposited at the next bank on a list of approved banks, thereby ensuring clients don’t exceed current limits. By using multiple banks versus a single bank, the program is able to provide up to $2,500,000 of FDIC insurance for your deposits.
- Eligible cash balances consist of USD free credits, generally defined as cash in your account in excess of margin requirements and short stock value, above the first $250,000 reserved for SIPC coverage and up to the program limit of $2,500,000. We designed our proprietary sweep algorithm to seamlessly integrate with your account and optimize FDIC-insurance coverage without disrupting your regular trading activity. The daily sweep computation factors in your USD cash, account equity, margin requirements, short stock value, projected cash settlements, and initial $250,000 SIPC buffer to determine the maximum free credit excess to sweep.
FDIC insurance limits apply to all of your eligible deposits at a bank. The FDIC insurance limit for all ownership categories in the Insured Bank Deposit Sweep Program is $250,000 per program bank. This is why it is important that clients monitor the assets they have at all banks and opt out of banks on the Interactive Brokers, LLC (our custodian) Priority Bank List where clients have assets not known to the custodian, so that the custodian does not sweep otherwise eligible balances into that bank. If you have other deposits at one or more of our program banks, you may exclude any bank from holding your program balances so you do not exceed current FDIC limits. For more information about FDIC coverage and different FDIC-defined ownership categories, visit the FDIC website, FDIC website.
IRA margin accounts allow trading so the account can be fully invested as well as the ability to trade multiple currencies and multiple currency products, but are subject to the following limitations:
- No cash borrowing (i.e. cannot have a debit balance or short stocks).
- IRA accounts may be opened in any base currency, but when trading in a non-base currency product, a currency trade must be executed first as you cannot borrow currencies.
- Withdrawals are permitted only in USD.*
- No stock or option cross-margining.
- No currency borrowing.
- Futures trading in an IRA margin account is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed three times the overnight futures margin requirement imposed in a non-IRA margin account.
Customers are advised to consult with their adviser and tax specialist for further details on IRA rules and regulations.
Residents of Canada may not open Individual Retirement Accounts.