So US stock sitting under an LLC omnibus account of a well capitalized US entity, under a well capitalized firm in HK under a parent company which has been highly profitable, has a history of retaining earnings and has over $7B in capital offers zero protection - sure, whatever you say gloria.
So is it true with ASIC also? were you forced to transfer AUS client a/c to IB AUS from IB US, thus loosing SIPC protection ( In Australia AFG is there but that only applies to Equity , when IB AUS is a mix of Futres, Equity what is the status
Anyone over here knows any size of listed company can just disappear and that happens again and again. People buy US stocks normally enjoy the real protection from US gov. Even HKIB colleapses then IB may has ways to ignore it, IBHK and IB are two separated companies. Show me a statement that IB will protect IBHK clients at all if that exists.
I've seen your posts and concerns over the years so I'm not going to get into a tit for tat but you need to make your own choice if comfortable with us or not. I've provided details numerous times on how management and staff have significant skin in the game (we have more to lose than most clients and have a large incentive to not take excessive risk), the firm as a long track record of running a conservative shop and so forth. Allowing one entity to fall would be potentially catastrophic to a company as it would most likely cause a run on the bank, a loss of confidence and worse. Regardless, on its own IBHK is well capitalized, maintains large excess capital and I back my words as an account holder who does indeed have skin in the game. In addition, I'm sure you know, while HK doesn't provide much in the way of insurance, the SFC is a tough and conservative regulator. In fact, they just put through new margin requirements limiting lending based on local shareholder capital. FWIW, earnings IBKR earnings were released last night which were strong. For the third quarter of 2019 commissions were $187 million, the third highest in our history, and net interest income reached a record $291 million on a net interest margin of 1.77%, also a record. Total accounts grew by 16% and client's equity topped $156 billion, leading to brokerage revenues exceeding $0.5 billion for the first time and generating a 65% pre-tax profit margin. That is on a global basis but if these types of consistent numbers doesn't give you confidence that we are financially strong then you need to invest and place your money where you are comfortable - heck, I know a bank in HK where you can have all the confidence you want with the trade-off of 25bps commission, no interest and FX spreads you can drive a truck through, perhaps you can give them a shot
def, All I can say is that I hope IB is safe if the Hong Kong Dollar is suddenly de-pegged. Hong Kong has already spent 80% of their reserves defending the decades long peg against the USD, a fact according to Kyle Bass (hedge fund manager with, no doubt, serious skin in the game).
One home run in 2007 and otherwise pretty much lame returns. https://en.wikipedia.org/wiki/Kyle_Bass Fund performance The long term performance of Hayman Capital's flagship fund is described by the New York Post as "small caliber".[22] In the period from 2008 to mid-2015, the flagship fund experienced a very modest annualized performance of 1.56%.[22] The flagship fund had a tremendously successful year in 2007, having gained 212%, based on the subprime mortgage meltdown bet that brought fame to Bass.[22] The fund also gained 16% in 2012 based on bets on Greek debt. The fund lost 1.4% in 2014 and suffered its worst year in 2017 with a 19% loss (in contrast to a 19% surge of the S&P 500) due to Hayman's misplaced short on a collapse in the Chinese yuan.[22][6] Here's a good article stating why he is wrong. https://www.washingtonpost.com/busi...600a36-7ce6-11e9-b1f3-b233fe5811ef_story.html
https://finance.yahoo.com/chart/IBK...saW5lIiwic3R5bGUiOiJzdHhfbGluZV9jaGFydCJ9fV19 Much worse than ES/NQ, would you invest in a company like this? LOL