Strength and Security
When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. The financial statements of Interactive Brokers LLC are available on our website for your review.
Note that Interactive Brokers LLC and its affiliates are owned by Interactive Brokers Group (IBG LLC).
In a recent interview, Thomas Peterffy, Founder and Chairman of the Board of Directors, shared his views on the current state of financial markets, including rising interest rates and their impact on Interactive Brokers. He also discussed IBKR's interest rates on uninvested cash balances and how clients are positioned to navigate the current environment.
Client money is segregated in special bank or custody accounts, which are designated for the exclusive benefit of clients of IBIE. Statutory Instrument. No. 604/2017 - Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2017 is the governing legislation in Ireland for Client Assets. There are 7 core Client Asset principals.
By properly segregating the client's assets, if no money or stock is borrowed and no futures positions are held by the client, then the client's assets are available to be returned to the client in the event of a default by or bankruptcy of the broker.
Client funds are deposited in pooled accounts, with a variety of reputable banks located both within and outside the EEA. This affords a greater level of protection to our clients, by reducing the concentration risk associated with depositing client funds with a small number of banks.
For clients who borrow money from IBIE to purchase securities, IBIE will utilise, for financing purposes, up to 100% of the loan value of the stock these clients hold with IBIE. In simple terms, IBIE borrows money from a third party (such as a bank or broker-dealer), using the client's margin stock as collateral, and it lends those funds to the client to finance the client's margin purchases.