Does IB offer Letter of Credit funding?

Discussion in 'Interactive Brokers' started by FrankInLa, Apr 3, 2020.

  1. virtusa

    virtusa

    Very important detail.
     
    #11     Apr 3, 2020
  2. Sig

    Sig

    You could buy them direct and transfer if you really really want to be sure they're in your name. Otherwise you can just ask your broker to do it for you. It's a manual process but they do it often enough that they're fine with it.
     
    #12     Apr 3, 2020
  3. FrankInLa

    FrankInLa

    Thanks. Interesting idea, as said. Though I will probably do a little more research about what happens when someone attempts to liquidate a bond held in my name vs a bond purchased on the broker platform (which is probably held in their name?).

     
    #13     Apr 3, 2020
  4. Sig

    Sig

    Yeah, it's held in their name if you just buy it online generally. If it's in your name it's your asset, they can't sell it without your permission. If it's in street name then through a contractual trail it's your's, which means a bankruptcy court has to determine the validity of that contractual trail. Like I said, at the end of the day you'll probably get most if not all your funds back, so this strategy is less a paranoids end of society thing and more of a practicality of ensuring your liquidity and minimizing potential stress in your life thing.
     
    #14     Apr 3, 2020
  5. FrankInLa

    FrankInLa

    I appreciate your sharing your insight into this. I agree, the probability of such event occurring is extremely low, so, it is just a means to sleep better with the added additional tad of security.

     
    #15     Apr 3, 2020
  6. ZBZB

    ZBZB

    #16     Apr 3, 2020
  7. FrankInLa

    FrankInLa

    Quite a different game. LOCs and SLCs are very common for larger accounts.

     
    #17     Apr 3, 2020