What if the Interactive Brokers Group goes bankrupt?
Jan Meriss Alfonso Assistant at Ascent Law LLC If you are an investor in Interactive Brokers, you may be wondering what would happen if the company goes bankrupt. There are several factors to consider before you make a decision. For example, you should read about their Direct Registration System (DRS) and Asset segregation policies. The company also adheres to SEC regulations and relevant SOPs. If all these factors are met, it is highly unlikely that the company will go bankrupt. Asset segregation One of the best ways to protect yourself from the possibility of broker bankruptcy is by ensuring that all of your assets are held in segregated accounts. In this way, you can avoid the problems of broker fraud and loss of your shares. While asset segregation is not 100% effective, it does work better than nothing at all. In the event of a broker's bankruptcy, the segregated funds held for its clients are not taxable. This is important for the protection of the customer's money. It ...