Not only a nice move though as all EU based customers are with IBUK I think, that would be a big loss of business to give them all up I suspect. Still, IB has increased compliance for many EU customers recently, and have written in other communication they might have reduced capacity with the new entities, so they might be looking into closing a bunch of EU accounts
I think this insurance scheme is only useful if your broker goes bust and you had cash or some OTC instruments in your account. Exchange traded instruments are on custodial account. I also noticed that OTC spot metals and OTC metal futures won't be available anymore, and no withdrawals possible if negative cash balance (margin). Also not sure about spot FX.
Sure. Even "nicer" is such Irish Compensation Scheme. Would an Irish investor with 1M worth of capital in the bank be compensated with just 25k, if the bank goes bust? Hard to believe.
it's about 100k in that case, under the Financial Service Compensation Scheme and other European scheme. 85k gpb for UK and some others, 100k euro for the rest of Europe
Still unbelievable. Very unlikely IB will go bankrupt, but a ridiculously low protection limit anyway. Speaking of which, does anyone know if there is any form of private insurance to protect one's capital from broker risk of failure?
Has anybody proceeded through the migration from IBUK to IBCE already? If yes, did you experience any problems? Were your postiions locked from selling e.g during some time? If yes for how long?
Here it is: https://ec.europa.eu/info/business-...ial-institutions/deposit-guarantee-schemes_en UK and some banks like in Eire and Cyprus are covered by a different but similar protection, FSCS I have no idea about the 25k.. and I thought any IB customer would be insured under sipc, but it's an insurance and never know when/if they pay. Not that I see any risk in IB, but 2008 teaches a lesson. All eggs in the same basket probably not the best idea.
Thank you for the link. That's for sure, but with just one egg you have less options I guess SIPC only protects customers of US firms. IBIE is Irish.
I know what is like to manage and preserve 1 egg! Sipc covers also appear on Ibkr UK website: https://www.interactivebrokers.co.uk/en/index.php?f=39138&p=acc