If the IBKR stock keeps tanking, what will happen to my account?

Discussion in 'Interactive Brokers' started by Port1385, Nov 3, 2008.

  1. So here we have a two post Nov 2008 alias posting what is almost certainly actionable material --- come on, be brave, tell IB who you work for?

    And its supported (lol) by

    - a link to a problem where ib was fined because one of their customers was screwing the system (I would guess by the complaint here recently that they now have automatic systems to shut down such customers).

    - a link to a Bloomberg story where a bunch of execs for a failing company (so it seems), MF Global, don't want to be taken over by IB. What is new here?

    No news except that we have another scammer on the board. Take a bow dipstick.
     
    #31     Nov 18, 2008
  2. Note: the previous post refers to a scammer post that the mods seem to have sensibly removed.

    Please ignore (if you don't already have me on ignore :))
     
    #32     Nov 19, 2008
  3. Daal

    Daal

    If the broker really segregates the client account then its not be open for a run on the bank so perhaps we dont need to worry about this
     
    #33     Nov 19, 2008
  4. I have to admit this price action is uber ugly.

    Is it simply tracking industry P/E? SWIM, SCHW, you name it also down large over the past 10 days. Looks likely IBKR just adjusting as it's RS was on the high side for a long time.

    since we are not insiders , we can't know for sure, now can we.
     
    #34     Nov 19, 2008
  5. Why has IBKR fallen so fast and in short time? Someone has to know something? Why did it dump on the 18th? What will happen to the accounts if an announcement comes out that they short on capital?
     
    #35     Nov 19, 2008
  6. Please outline one situation where IB could be 'short on capital'. A realistic one too.
     
    #36     Nov 19, 2008
  7. Cutten

    Cutten

    Because it's a bear market? IBKR is down less than CME, NYX, SCHW, JPM, GS, MS, C, BAC, USB, WFC today. In other words, it's down less than all the major exchanges, wall street elite, brokers, and banks.

    If IBKR was down loads more than the brokerage sector, or the market in general, then it *could* be a sign of a problem. Or, like March this year, it could just be unsubstantiated panic. However, IBKR is actually *outperforming* far bigger blue chip stocks in the financial sector, and has done far better than competitors like MG (which, despite a 90%+ fall this year, is still solvent and no customers have lost money).

    IBKR has a long-only options book mandate, segregated customer accounts, does not rely on bank or market funding for operations, does not own high-risk financial securities etc. It's a very conservatively run operation. The founder still owns most of the stock, and he's a 30 year veteran options trader who has not blown up despite 1987, 1998, 2000-2003, 2007-08. IBKR is probably a safer place for funds than 98% of banks out there.

    As always, only the reckless have >50% of their funds at once financial institution. But I would say IBKR is one of the safest places to park your cash, and for market access + safety it cannot be beat. Which other brokers are you going to use instead?
     
    #37     Nov 19, 2008
  8. Why are you so concerned about IBKR?

    Look at the sad stocks of competitors: ETFC, MF, FCSX, PNSN, SWIM, AMTD, TRAD.

    And there are also the big boys GS and JPM.

    The market hates all brokerage stocks.
     
    #38     Nov 19, 2008
  9. Has to do with Citibank is my guess.
     
    #39     Nov 20, 2008
  10. Well said and I totally agee.

    We are proud to be an IB customer and we have been with them since October 2002.

    Maria
     
    #40     Nov 20, 2008