Thank you for pointing this out. IB was asked for a link in this thread. Def did not provide one... But just acidly stated that IB does not provide "frills", etc. So it was left to you to provide a link. As for the "securing a network" part... A non-engineer would have no clue... As to the degree that their network was secure. Computer security is not a field that can be well understood by amateurs... And there is no such thing as 100% computer security... Certainly not when connected to the internet. You know, giles117... You sound like a 20 year old with no real money to worry about. No one cares about the 10K in your account.
No clue doesnt mean they cant do it. Of course if we keep burning books then we all will have no clue... Education (oops I am in America where they dont really care.) There is a such thing as 100% security.. When not connected to the net.... Ok Ok, you got me 99.7 % Dang you found me out. Though I am really 16, with a $50 account. I use my dads computer to wreck havoc. Ok Enough sarcasm for the evening (with you) Perhaps my exuberance that my traveling wife is on her way home after being away from me for 4 days is spilling over into my responses. Bottom Line, you can secure your environment without EXTENSIVE knowledge. It's the simple things. You almost act as if a novice cant be taught... If that is the case we need to abolish all educational facilities... IMMEDIATELY!!! after al they teach and train the "novices" of the world. There are enough people in the world like YOU who can educate the unenlightened, or even for a small fee can do the work for them and give them some direction as to what to look for. I know I have given oodles of telephone support to my peers over the years in these matters. But then again.....
Well if you are going to go that route, assuming that someone on the inside of IB is going to hijack your account, then I think you are in for a world of disappointment. See even with the new hi-tech IB security device someone on the inside will still be able to place trades in your account - then when you try to claim fraud they will say there is no way anyone else could have placed a trade but you because of the security device....thus your claim of unauthorized trade will be rejected and you will still be stuck. Might as well close your account right now.
The insurance mentioned is covering against "'broker failure", probably meaning technical stuff like downed networks while open positions. I'm not at all certain that it covers "fraud", which is essentially "customer failure" until proven otherwise. Since def didn't point to this insurance I assume it is not covering. Ursa..
Def, glad to see you participating in this thread. How about some specific numbers? How much would it cost to insure against fraud? How much would IB need to raise its fees? Could IB provide fraud protection to those customers willing to pay higher fees, and withold fraud protection from those demanding lower fees? If the risk of fraud really were negligible, then the cost of fraud insurance would also be negligible. If, as you state, the cost of fraud insurance is substantial, this reflects the judgment by insurers that the risk of fraud is substantial. If IB knows the insurers are wrongly overestimating the risk, then wouldn't this be a money-making opportunity for IB to profit by self-insuring against the risk? I think I'd rather pay predictable fraud protection insurance premiums, secure in the knowledge that I will still have some of my trading capital, instead of gambling on the possibility that I might be totally wiped out by fraud. I would also opine that nobody, no matter what their level of expertise in computer security, can protect himself 100% against fraud risks by the use of technical countermeasures, and that even the most brilliant computer geeks need and should seek fraud protection insurance.
It's a tough call. You want your customers to be safe so they will do business with the firm, but you don't want to indemnify them from all risk or the customers won't be as dilligent in protecting their own systems. They have strong measures in place against outright stealing of funds. It's the risk of unauthorized trading that is scary.
Good point. How about insuring against fraud, with a deductible equal to 25% to 50% of the account equity, so that customers will still have an incentive to do their share for security?
Oh, and here's another idea. How about a separate fee for fraud insurance, to be paid only by those customers who choose to insure their accounts against fraud?
Newbies with your 5k accounts: Just go to Etrade and pay 10x the fees and sleep better that no Russians are emptying your account. Stop begging and just stop whining!! You can not have both! IB'ers: Use the IP restriction feature, use the security PIN device (for accounts > 100k) and use a separate PC just for entering orders. Run Outpost Security Suite Pro or Kaspersky Internet Security on all of your computers in your home network.
I've noticed that only a very small minority make postings opposing new security policies for IB, and that this small minority is unable to articulate rational arguments to support their position, and so, they rely on false assumptions and personal insults about people who have legitimate security concerns.