scary [bleeeep]!
Interactive brokers doesnt have money mkts
Started by
atlasshrugged
, Aug 14 2007 10:16 AM
5 replies to this topic
#1
Posted 14 August 2007 - 10:16 AM
#2
Posted 14 August 2007 - 10:20 AM
scary [bleeeep]!
Please explain better
Thank you
Edited by Swiss Trader, 14 August 2007 - 10:22 AM.
#3
Posted 14 August 2007 - 10:20 AM
Thanks IC. I read something a while ago from Weiss that gave them one of the highest security ratings (if not the highest) compared to other brokers if severe systemic risk arises.
They're doing something right as their credit debit rates are VERY competitive.
#4
Posted 14 August 2007 - 10:27 AM
scary [bleeeep]!
Please explain better
Thank you
there is a run on a US broker who has clients money in money mkt invested in CMO's
#5
Posted 14 August 2007 - 10:28 AM
I guess you could look at their financial statements available on their website. Note the repurchase agreements. A repurchase agreement is one of the money market instruments commonly found in money market funds.
That said, I think IB is conservatively financed. But do check out their financial statements, no need to ask customer service. Their customer service reps would not be informed on this type of issue.
#6
Posted 14 August 2007 - 10:36 AM
i agree with CAzarro.
beware: the profit structure of these low cost brokers is almost all based on income from the balances held. think about the way the clearing houses work. these brokers keep a LOT of customer funds in accounts which they control, even though they are segregated from company funds.