Strength and Security
When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. The financial statements of Interactive Brokers LLC are available on our website for your review.
Note that Interactive Brokers LLC and its affiliates are owned by IBG LLC.
In a recent interview, Thomas Peterffy, Founder and Chairman of the Board of Directors, shared his views on the current state of financial markets, including rising interest rates and their impact on Interactive Brokers. He also discussed IBKR's interest rates on instantly available cash balances and how clients are positioned to navigate the current environment.
Client money is segregated in special bank accounts (Client Money Accounts held in Trust with Authorised Deposit-taking Institutions ("ADI")) which are designated for the exclusive benefit of Australian clients of IBKR. This segregation is a requirement of Australian Financial Services License ("AFSL") holders and, Interactive Brokers Australia ("IBKR Australia"), as an AFSL holder, fully complies with these principles.
By properly segregating the client's assets, if no money or stock is borrowed and no futures positions are held by the client, then the client's assets are available to be returned to the client in the event of a default by or bankruptcy of the broker.
Client money is NOT invested by IBKR Australia, and is at all times held in these Client Money Accounts held in Trust. In addition, IBKR Australia does NOT hold any excess amount of its own money in these Client Money Accounts held in Trust.
For certain clients who borrow money from IBKR Australia to purchase securities, IBKR Australia is permitted to utilize for financing purposes a portion of the loan value of the stock these clients hold with IBKR Australia. In simple terms, IBKR Australia borrows money from a third party (such as a bank or broker-dealer), using the client's margin stock as collateral, and it lends those funds to the client to finance the client's margin purchases. Click here for more information on which clients are affected by this.
Pursuant to the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019, Interactive Brokers Australia Pty. Ltd. has prepared the following target market determinations relating to certain financial products for which it is deemed to be the issuer. Our Target Market Determinations are located here: Target Market Determinations.
Product Disclosure Statements are also available for each of these products. You should carefully consider these Disclosures in deciding whether to acquire, or to continue to hold, the relevant financial product.