Through its clearing firm, Interactive Brokers(IBLLC) , all Tiger Brokers' customer money is segregated in special banks (For more details, please refer here) or custody accounts, which are designated for the exclusive benefit of customers of IB. The clearing firm is also required by SEC and FINRA to perform a detailed reconciliation of Tiger Brokers' customer money and securities at least weekly to ensure that customer monies are properly segregated from the broker-dealer's own funds.
Another major benefit of doing business with Tiger Brokers is that it does not carry any proprietary inventory. We solely acts as a facilitator for customer trading and does not make any directional bets, which greatly ensure the safety of customers' funds and significantly reduce the risk of brokers' bankruptcy.
Our clearing firm, Interactive Brokers(IBLLC), is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission. IBLLC ensures customers accounts introduced by Tiger Brokers are operated in compliance with the SEC and FINRA rules and regulations.
SEC is U.S. securities regulatory agency, CFTC is U.S. futures regulatory agency, FINRA is a not-for- profit organization authorized by Congress to protect America's investors by making sure the broker-dealer industry operates fairly and honestly. SIPC is also a non-profit organization created by the U.S. congress to specifically provide asset protection for customers of securities brokers.
Benefited by the introducing relationship with Interactive Brokers(IBLLC) , Tiger Brokers' Customer securities accounts at IB are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sublimit of $250,000) and under IB's excess SIPC policy with certain underwriters at Lloyd's of London 1 for up to an additional $30 million (with a cash sublimit of $900,000) subject to an aggregate limit of $150 million.
As with all securities firms, this coverage provides protection against failure of a broker-dealer, not against loss of market value of securities.
Note 1: Tiger Broker's clearing house is Interactive Brokers. Interactive Brokers is a U.S. registered securities broker-dealer, as well as a futures commission merchant. In addition to being an internet broker, Interactive Brokers also provides clearing services to other brokers. Interactive Brokers' clearing services including account opening, and orders liquidation.
Note 2: In the U.S., apart from large stock exchanges like NASDAQ, there are many electronic communications networks (ECN) and alternative trading systems (ATS) where investors can obtain securities trading services. Clearance houses provide clearing services that bridge securities brokers and the exchanges.