As the 9/28 is approaching, I'm considering to deposite more money into my IB account to qualify daytrader according to new margin rules. Yet I'm not confident enough to put 25K at a broker from whom I have never received a piece of paper. All my knowledge of IB is from internet. What if www.interactivebrokers.com doesn't exist any more when I wake up next moring? Does anyone here share the same concern?
Not really. IB is SIPC insured, which means that your account is safe up to $500,000 if IB went out of business.
klin, Not only that, on top of SIPC IB provides an additional 9.5 million in securities account protection through American International Group (AIG). For a total of 10 million account protection, 1 million of which is for cash. On the other hand IB is constantly one of the top 15 NYSE program trading firms , which make close to 1/3 of the NYSE volume. Check out the top 15 program trading firms for Sept.4-Sept.7: http://www.nyse.com/pdfs/pt092001.pdf . Fohat
Does not apply to futures. I'm opening a futures account right now with IB. Assuming I'm any good at it and make some money, I'll just take profits out more frequently or transfer them to my reg. IB account that's insured. I wouldn't be too worried about IB. I think they are a pretty sound company. The no paper thing is a bit troublesome I agree, but that's one reason commissions are so good. I just make sure I back up all my emails AND print them out for my records.