Interactive Broker as a end-stop?
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@KJK
First agreement is between you and IB in which you both agree that you, the customer, own shares.
Second agreement is between IB and the ultimate source of supply for stocks, possibly the stock exchange or order flow agent, in which both parties agree that IB, the customer, owns shares. The stock exchange sees IB as the beneficial owner of stocks and they have no idea of your existence.
But I think it's very nice of them to pass on the non-monetary shareholder perks such as the event invitations to their customers. This shows that at least the companies in question don't stand in︀ the dark.
First agreement is between you and IB in which you both agree that you, the customer, own shares.
Second agreement is between IB and the ultimate source of supply for stocks, possibly the stock exchange or order flow agent, in which both parties agree that IB, the customer, owns shares. The stock exchange sees IB as the beneficial owner of stocks and they have no idea of your existence.
But I think it's very nice of them to pass on the non-monetary shareholder perks such as the event invitations to their customers. This shows that at least the companies in question don't stand in︀ the dark.
Are you sure about that? I thought if you have a bank account and︅ own bonds\stocks etc your equities are NOT a part of the bank balance sheet and︆ are yours even if the bank implodes.
Any other brokers\banks that do allow you to︇ hold stocks in YOUR name?
Any other brokers\banks that do allow you to︇ hold stocks in YOUR name?
I see ... what about SwissQuote \ Saxobank \ Dukascopy? They should be a bank as hey do have banking license.
The writing isn't very convincing:
"In the event that a Danish bank (including Saxo Bank) should suspend its payments or go into bankruptcy, client deposits are guaranteed by the Fund with up to EUR 100,000 for cash deposits. Cash deposits are calculated as the net free deposit after deduction of any debt to the bank.
As a general rule, securities will not be affected by the suspension of payment or compulsory winding-up and will be returned to the client. In the event that a︀ Danish bank (including Saxo Bank) is unable to return securities held in safe-custody, administered or︁ managed, the Guarantee Fund will cover with up to EUR 20,000 per client."
Taken from︂
https://www.home.saxo/legal/protection-of-client-funds/protection-of-retail-client-funds
The writing isn't very convincing:
"In the event that a Danish bank (including Saxo Bank) should suspend its payments or go into bankruptcy, client deposits are guaranteed by the Fund with up to EUR 100,000 for cash deposits. Cash deposits are calculated as the net free deposit after deduction of any debt to the bank.
As a general rule, securities will not be affected by the suspension of payment or compulsory winding-up and will be returned to the client. In the event that a︀ Danish bank (including Saxo Bank) is unable to return securities held in safe-custody, administered or︁ managed, the Guarantee Fund will cover with up to EUR 20,000 per client."
Taken from︂
https://www.home.saxo/legal/protection-of-client-funds/protection-of-retail-client-funds
I would ignore Swissquote or Dukascopy as those are in Switzerland and outside EU rules. However Saxobank is a real bank and assets are ring fenced. You will get back all custody assets and max 100k of any cash deposit in worst case. The 20k is worrying and would suggest that custody assets have been co-mingling, embezzled or bad accounting meaning they cannot return funds to you. I wouldn't want to say this could never happen with Saxobank as︀ it happened with MF Global in US but it a highly unlikely in EU. With︁ IB you get back £85k for everything you hold with them in worst case if︂ you are with their UK entity.
P.S EU rules are just that rules and there︃ is nothing in reality that can stop a bank from breaking custody asset segregation rules︄ sadly just like any other EU rule can be broken so at least you get︅ up to 20k back in that case..lol. 😕.
P.S EU rules are just that rules and there︃ is nothing in reality that can stop a bank from breaking custody asset segregation rules︄ sadly just like any other EU rule can be broken so at least you get︅ up to 20k back in that case..lol. 😕.
How much are their trading fees?
Could it make sense to use an IB account from another country?
I’m outside EU, outside US - which country would IB give me an account in by default? I have heard that if you apply to IB in a specific country (like HK), there’s a big chance you’ll get︀ an account from that country.
I want to trade ETFs and individual stocks to begin︁ with. My country has no tax treaty with the US. To avoid The risk of︂ estate tax and WHT on US dividends, I would prefer Ireland-domiciled ETFs.
Are there better︃ options than IB? I only have ~$100k to invest, not millions.
Could it make sense to use an IB account from another country?
I’m outside EU, outside US - which country would IB give me an account in by default? I have heard that if you apply to IB in a specific country (like HK), there’s a big chance you’ll get︀ an account from that country.
I want to trade ETFs and individual stocks to begin︁ with. My country has no tax treaty with the US. To avoid The risk of︂ estate tax and WHT on US dividends, I would prefer Ireland-domiciled ETFs.
Are there better︃ options than IB? I only have ~$100k to invest, not millions.
@JustAnotherNomad
Singapore banks' brokerage fees are not that cheap. About 1.5x-2x the fees of IB for Singaporean or HK assets. For buying non-Asian assets, neither HK or SG banks are ideal as the fees can go as high as 4x per round-trip (buy+sell) of discount brokers.
You might want to sign up with IB if you want an avalanche of asset choice around the globe, or with Degiro but more specifically for buying in the EU. Both are cost-wise a better fit. At this portfolio size, fees outweigh the importance of "final touches to asset security"
@ Country of choice, IB gives you an account︀ purely based on your residency. You can't choose your own. There are major compliance considerations︁ to brokerage accounts.
Singapore banks' brokerage fees are not that cheap. About 1.5x-2x the fees of IB for Singaporean or HK assets. For buying non-Asian assets, neither HK or SG banks are ideal as the fees can go as high as 4x per round-trip (buy+sell) of discount brokers.
You might want to sign up with IB if you want an avalanche of asset choice around the globe, or with Degiro but more specifically for buying in the EU. Both are cost-wise a better fit. At this portfolio size, fees outweigh the importance of "final touches to asset security"
@ Country of choice, IB gives you an account︀ purely based on your residency. You can't choose your own. There are major compliance considerations︁ to brokerage accounts.
IF there is a choice (big if), would it make a difference and would certain jurisdictions be preferable?
Tell that to MF Global.
https://www.cbc.ca/news/business/mf-global-mixed-clients-funds-with-its-own-1.1084595
https://www.cbc.ca/news/business/mf-global-mixed-clients-funds-with-its-own-1.1084595
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