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Duane Cheng
05 Aug 2020
Financial Consultant at Prudential Assurance Company Singapore
Hi Mr.Tan,
Investing in the open market has associated risks, and one of the risks that is often highlighted is that your loss may exceed your capital in some cases. You can reference this, to get a better understanding of what assets you might have that are protected.
If you are investing in Singapore, your deposits are considered foreign in nature, and not subjected to coverage under FDIC. IBKR is currently listed in MAS as a financial institution, and therefore should have SDIC up to SGD$75k.
So if you have excess of funds above 75k, you will only be entitled to 75k in an insolvency scenario.
Hope i was able to answer your queries!
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And the equity of your IB account should always be protected.
some products like Exchange Traded Notes or SWAP-based synthetically replicated ETFs bear a third party default risk.