Brexit and IB

Discussion in 'Interactive Brokers' started by Scanman, Nov 5, 2020.

  1. _terminus_

    _terminus_

    Isn't EU protection much worse than SIPC's?

    €25k vs. $500/250.

     
    #31     Dec 22, 2020
  2. This is a good point, actually. I know TastyTrades, Lightspeed and probably others are available for EU clients, so I'm not sure why IB couldn't simply allow clients to be moved under US regulation after Brexit instead of strictly EU.

    My only guess is that it has to do with cost optimization. With Ireland sitting at 12% and Hungary 9% corporate tax, Brexit was a good excuse to relocate European clients to more cost-effective domiciles. Apple and Google are doing it it, so why not IB?
     
    #32     Dec 22, 2020
    _terminus_ and Scanman like this.
  3. Scanman

    Scanman

    i read also

    "We have applied to the Central Bank of Ireland for IBIE to be authorised as an investment firm"
    but until now this is not confirmed they are "authorised as an investment firm".
    and in less than 10 days to decision it seems so strange.

    if i'm firm and i want my clients feel sure of me and of course before i dont want arrive the last days of the year to be "recognized as investment firm ".


    following what i read seems they are not authorized yet-

    nevertheless the account is less protected ( differently from other Us or non Us brokers operating with european clients where the account insurance remains the same )
     
    #33     Dec 22, 2020
  4. blink18

    blink18

    I don't want EU regulatory protection or EU investor compensation schemes. They are crap compared to those in UK or USA. I still remember USA etf prohibition because of MIFID2 and PRIIP - are we in a better or safer position now? No.
     
    #34     Dec 22, 2020
  5. blink18

    blink18

    Are you sure these USA brokers are available to EU residents? It's not EU citizenship that matters, it's your EU residency.

    My opinion is they want to hedge their location bets in case any other country exits EU in the future. Btw. Luxembourg has high corporate tax of 24.94%.
     
    Last edited: Dec 22, 2020
    #35     Dec 22, 2020
  6. neo-13

    neo-13

    Hi
    For tastytrade it's sure, i have an account in this firm and I'm european, and for lightspeed I contacted them because I was interested too, and told me yes, european citizen are available.
     
    #36     Dec 23, 2020
    Robert Morse likes this.
  7. Those firms may have issues offering EU products and certainly can't advertise there.
     
    #37     Dec 23, 2020
  8. neo-13

    neo-13

    Hi
    which issue they have please? For lightspeed I can't say (i'm not custome), but for tasty i have an account and no issue, but I'm curious and I don't know all, so i'm waiting to learn.
    Thanks
     
    #38     Dec 23, 2020
  9. I'm speculating but if they are offering EU products to EU residents they could be deemed to be performing regulated activity which would require a license.
     
    #39     Dec 23, 2020
  10. neo-13

    neo-13

    No EU products, you can trade only US products (futures, options and stocks).
     
    #40     Dec 23, 2020
    george_the_second likes this.