With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected. How financially resilient is Interactive Brokers? What is the risk of IB going bankrupt? Thanks.
They're not a bank & hold no HTM securities which is causing so much trouble with banks now. Here's some information to read & a recent video with Thomas Peterffy. https://www.interactivebrokers.com/en/general/financial-strength.php
The biggest fear might be if their large clients default. Per my understanding of exchange rules, ibkr would be on the hook to cover the default. I believe this is what Peterffy was talking about when he referred to the potential collapse of the system during the GameStop debacle. Given ibkr low margin rates, that could possibly make them more vulnerable than others. https://www.interactivebrokers.com/en/whyib/low_cost_margin.php
Because brokerages by SEC regulation must mark their books to market every single day. No hiding of asset valuations.
Exactly, in 2013 IBKR was snared by SGX penny stocks(Blumont and Liongold). Long road for Interactive Brokers’ recovery process | The Edge Markets
Shouldn't affect brokerage firms as they are in a totally separate industry. Very Very little to almost none. You are welcome.