Brexit and IB
- Thread starter Scanman
- Start date
This is a good point, actually. I know TastyTrades, Lightspeed and probably others are available for EU clients, so I'm not sure why IB couldn't simply allow clients to be moved under US regulation after Brexit instead of strictly EU.
My only guess is that it has to do with cost optimization. With Ireland sitting at 12% and Hungary 9% corporate tax, Brexit was a good excuse to relocate European clients to more cost-effective domiciles. Apple and Google are doing it it, so why not IB?
My only guess is that it has to do with cost optimization. With Ireland sitting at 12% and Hungary 9% corporate tax, Brexit was a good excuse to relocate European clients to more cost-effective domiciles. Apple and Google are doing it it, so why not IB?
i read also
"We have applied to the Central Bank of Ireland for IBIE to be authorised as an investment firm"
but until now this is not confirmed they are "authorised as an investment firm".
and in less than 10 days to decision it seems so strange.
if i'm firm and i want my clients feel sure of me and of course before i dont want arrive the last days of the year to be "recognized as investment firm ".
following what i read seems they are not authorized yet-
nevertheless the account is less protected ( differently from other Us or non Us brokers operating with european clients where the account insurance remains the same )
I don't want EU regulatory protection or EU investor compensation schemes. They are crap compared to those in UK or USA. I still remember USA etf prohibition because of MIFID2 and PRIIP - are we in a better or safer position now? No.
Are you sure these USA brokers are available to EU residents? It's not EU citizenship that matters, it's your EU residency.
My opinion is they want to hedge their location bets in case any other country exits EU in the future. Btw. Luxembourg has high corporate tax of 24.94%.
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Those firms may have issues offering EU products and certainly can't advertise there.
I'm speculating but if they are offering EU products to EU residents they could be deemed to be performing regulated activity which would require a license.