Trading 212 and IBKR

thenewcomer

Hi guys. Funds and assets on T212 are protected by FSCS up to £85k. Whilst IBKR is protected by SIPC compensation scheme for up to $500K. I read that T212 works with IBKR. 
Would there be no protection by FSCS for combined funds and assets over £85k invested in the two platforms?

expansion

FSCS doesn't protect shares or funds. If you're using 212 for the interest like most it is not interest it is an MMF so also not covered.

gravel_2

expansion said:

If you're using 212 for the interest like most it is not interest it is an MMF so also not covered.

This is wrong. 
Cash earning interest in a Cash ISA is entirely held with banks and benefits from FSCS protection.
Cash earning interest in the S&S ISA can be held in QMMF but currently, for me, only ~36% is held in QMMF, the rest is in banks and therefore protected.

I haven't opted in for interest in the unwrapped "Invest" account but assume it's likely same as S&S ISA.

masonic

It's also wrong in the respect that funds and shares have FSCS protection if your custodian goes bust and they cannot be returned to you.

wmb194

gravel_2 said:

expansion said:

If you're using 212 for the interest like most it is not interest it is an MMF so also not covered.

This is wrong. 
Cash earning interest in a Cash ISA is entirely held with banks and benefits from FSCS protection.
Cash earning interest in the S&S ISA can be held in QMMF but currently, for me, only ~36% is held in QMMF, the rest is in banks and therefore protected.

I haven't opted in for interest in the unwrapped "Invest" account but assume it's likely same as S&S ISA.

Yes, the split between the banks and QMMF in the S&S Isa is the same as the GIA.

masonic

thenewcomer said:

Hi guys. Funds and assets on T212 are protected by FSCS up to £85k. Whilst IBKR is protected by SIPC compensation scheme for up to $500K. I read that T212 works with IBKR. 
Would there be no protection by FSCS for combined funds and assets over £85k invested in the two platforms?

IBKR acts as custodian for T212, so if IBKR goes bust, then the FSCS would cover your share of missing assets in their pooled nominee account (for example if IBKR held £5m in VWRP in its nominee account for investors and £500k was fraudulently misappropriated, each investor would have a 10% loss, which means you'd need £50k FSCS compensation for a £500k holding, plus, say, a capped £10-20k to cover administration costs). Whereas if T212 went bust, you'd have a separate £85k limit for any assets that were not held in the IBKR nominee account.