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How Safe are Interactive Brokers?
- Thread starter LordMelbury
- Start date
The most up-to-date data is probably here http://individuals.interactivebrokers.com/download/IBLLC_2Q07_Unaud_Finls.pdf
Payable to customers $ 5,740,768,925 as of end of June 2007.
Payable to customers $ 5,740,768,925 as of end of June 2007.
Quote from ids:
The most up-to-date data is probably here http://individuals.interactivebrokers.com/download/IBLLC_2Q07_Unaud_Finls.pdf
Payable to customers $ 5,740,768,925 as of end of June 2007.
Is it correct to conclude that the $150MM aggregate policy is there to "insure" $5B in assets?
Quote from gnome:
Is it correct to conclude that the $150MM aggregate policy is there to "insure" $5B in assets?
I'd say this is an incorrect conclusion. The Lloyds policy is intended to insure that amount in excess of the $500K SIPC insurance. So to know what exactly the Lloyd's policy is insuring, you would need to know the number of accounts in excess of the SIPC limits, and their respective sizes. If your account is under the SIPC limits then the Lloyds policy is less important. But frankly given the information that we currently know, it's impossible to tell how any specific customer would benefit from the Lloyd's policy provided your account exceeds the SIPC limits. I'd say one of the most important concerns would be the financial stability of the firm itself, because if a firm it strong enough, insurance would tend to be less important.
OldTrader
Quote from OldTrader:
I'd say this is an incorrect conclusion. The Lloyds policy is intended to insure that amount in excess of the $500K SIPC insurance. So to know what exactly the Lloyd's policy is insuring, you would need to know the number of accounts in excess of the SIPC limits, and their respective sizes. If your account is under the SIPC limits then the Lloyds policy is less important. But frankly given the information that we currently know, it's impossible to tell how any specific customer would benefit from the Lloyd's policy provided your account exceeds the SIPC limits. I'd say one of the most important concerns would be the financial stability of the firm itself, because if a firm it strong enough, insurance would tend to be less important.
OldTrader
Sounds right. SIPC will cover the accounts =/< $500K. The additional insurance policy would cover account balances >$500K, however much that is.
Conceptually... if "all" or "nearly all" of IB's accounts are < $500K, the additional insurance would barely be needed, if at all.