Any reason to worry about our own broker?

Ok, that should be what I need to do now.
To be honest, I like IB, but this occasional technical error bothers me. Are you in HK, too?
 
Quote from HKIB:

I would like to know where they park the cash.
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No, I'm not in HK.

This is from the IB site.

"As a regulated broker, IB is subject to SEC and CFTC regulations on investment of customer funds. Permissible investment vehicles include bank deposits and a variety of top-rated government securities and related instruments. IB’s effective investment policy is more stringent than this, reflecting our risk-averse philosophy. We only invest customer funds in government securities and repos, cash deposits in bank accounts at the largest banks and the triple A-rated Money Market Funds (in which we invest less than 2% of customer assets)."

I'm not saying your money is 100% safe anywhere, even in a bank. You asked about money market funds - here is a partial answer. Good luck.

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To the guy who posted above that 100% of his net worth is in a brokerage account - that would be classified as a bad idea. IMO.
 
Ib is directly created by Timber Hill. One of the worlds largest and most successful OPtion Market Makers.

If Anything, they have a better understanding of risk than 99% of street whores out there.

Their model makes Black Scholes look like a 4th grage project.
 
I thought about putting a withdrawl request for 10% of my account, but all that would happen is the money would be transferred to my checking account at Wells Fargo. I'm not sure that's necessarily a better situation unless I then withdraw the money and buy gold.
 
datamerc, in a different thread just posted this:
datamerc


Registered: Apr 2006
Posts: 227


New Post 03-17-08 11:18 AM

IB is on the defensive - just got the following email from them with the attached PDF.

Dear IB Customer:

During the last few weeks we have been running an advertisement in the Wall Street Journal regarding the safety of moving money to Interactive Brokers. We want all of our customers to know that every word of this advertisement remains true and accurate. We are proud of our prudent and conservative policies that protect our clients' assets. Please click here to see our advertisement.


Sincerely,

Interactive Brokers
 

Attachments

Quote from BCE:

I was wondering about this too and posted this message earlier:
"BTW, FWIW I just put in a request to withdraw $1,000 from my IB account. No big deal right? Well usually it says under status, "Pending". But today it says "Request Under Review". Ha. Maybe IB is worried about a run on their accounts too. Hmmm. Not sure how our money is backed up there. I guess it's insured by the SIPC. Is that right?"

But now the pending withdrawal has been changed to "Processing". Not sure that's different. Ha. :) Hopefully we're okay.

I just vaguely remember what happened at Revco which everyone thought was one of the more solid futures firms. Anyone have a link to this info on Revco? Wasn't Jim Rogers involved somehow?
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are you for real, trying to create panic about your own broker, I doubt you are legit...
 
Quote from tds551:

Ib is directly created by Timber Hill. One of the worlds largest and most successful OPtion Market Makers.

If Anything, they have a better understanding of risk than 99% of street whores out there.

Their model makes Black Scholes look like a 4th grage project.
More...

no one uses Black Schoeles for option pricing, it is just a reference...
 
The risk of your account is not with IB but with Citibank. There your money is held and gone when C goes bankrupt.
IB is fine and healthy but C is sick.
 
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