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Interactive Brokers Group Strength and Security


Strength and Security


Financial Strength

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.




Important Strength and Security Facts about Interactive Brokers Group1


  • On a consolidated basis, IBG LLC exceeds $8.5 billion in equity capital, over $6.0 billion in excess of regulatory requirements.
  • IBG LLC's owners are our public company, Interactive Brokers Group, Inc. (18.5%) and the firm's employees and their affiliates (81.5%). Unlike at most other firms, where management owns a relatively small share, we participate substantially in the downside just as much as in the upside. Because of this vested interest, we run our business conservatively.
  • We manage our brokerage and market making businesses in separate companies, which are registered with local securities and/or commodities regulators. We maintain strict systematic and procedural separation between the two business lines and we do not commingle or utilize client-segregated assets for proprietary operations. Although certain affiliates of IBKR trade for their own account, our client-facing businesses do not conduct proprietary trading. We have completed the winding down of the bulk of our market making operations.
  • We hold no material positions in over-the-counter securities or derivatives. We hold no CDOs, MBS or CDS.
  • Our positions are marked to market daily and the resulting payables/receivables are reconciled to outside sources automatically.
  • Our real-time margining system marks all client positions to market continuously. All orders are credit vetted before being executed and positions in accounts with inadequate margin deposits are liquidated automatically.
  • IBG LLC reported $1.2 billion of pretax profit for 2019.
  • IBG LLC have no long-term debt.
  • Interactive Brokers LLC is rated 'BBB+'; Outlook Positive by Standard & Poor's

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How We Handle Client Assets


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.




Securities accounts with margin loans


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.


Disclosure
  1. All numbers reported as of March 31, 2020.