Financial stability of Interactive Brokers

[TimeCorrosion]

With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected.

How financially resilient is Interactive Brokers? What is the risk of IB going bankrupt?

Thanks.

 

[themickey]

With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected.
How financially resilient is Interactive Brokers? What is the risk of IB going bankrupt?
Thanks.

Just watch this.

 

[BKR88]

With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected.

How financially resilient is Interactive Brokers? What is the risk of IB going bankrupt?

Thanks.

They're not a bank & hold no HTM securities which is causing so much trouble with banks now.
Here's some information to read & a recent video with Thomas Peterffy.
https://www.interactivebrokers.com/en/general/financial-strength.php

 

[engineering]

The biggest fear might be if their large clients default. Per my understanding of exchange rules, ibkr would be on the hook to cover the default.

I believe this is what Peterffy was talking about when he referred to the potential collapse of the system during the GameStop debacle.

Given ibkr low margin rates, that could possibly make them more vulnerable than others.
https://www.interactivebrokers.com/en/whyib/low_cost_margin.php

 

[M.W.]

Because brokerages by SEC regulation must mark their books to market every single day. No hiding of asset valuations.

They're not a bank & hold no HTM securities which is causing so much trouble with banks now.
Here's some information to read & a recent video with Thomas Peterffy.
https://www.interactivebrokers.com/en/general/financial-strength.php

 

[Peter8519]

The biggest fear might be if their large clients default. Per my understanding of exchange rules, ibkr would be on the hook to cover the default.

I believe this is what Peterffy was talking about when he referred to the potential collapse of the system during the GameStop debacle.

Given ibkr low margin rates, that could possibly make them more vulnerable than others.
https://www.interactivebrokers.com/en/whyib/low_cost_margin.php

Exactly, in 2013 IBKR was snared by SGX penny stocks(Blumont and Liongold).
Long road for Interactive Brokers’ recovery process | The Edge Markets

 

[stochastix]

how long would we have to wait for SIPC reimbursement?

 

[ph1l]

how long would we have to wait for SIPC reimbursement?

https://www.sipc.org/cases-and-clai...es, customers,filing the completed claim form.

Generally, in these cases, customers may receive at least some of their property one to three months after filing the completed claim form.

 

[TheDawn]

With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected.

Shouldn't affect brokerage firms as they are in a totally separate industry.

How financially resilient is Interactive Brokers?

Very

What is the risk of IB going bankrupt?

Very little to almost none.

Thanks.

You are welcome.

 

[TheDawn]

The biggest fear might be if their large clients default.

How? Can you be more specific?