Interview with Interactive Brokers – Brexit and deposit insurance

With Maximilian Rimpfl from Interactive Brokers, we had an exciting interviewee as our guest and pestered him with questions about Brexit and the reduction of the deposit insurance to € 20,000. We have summarized the most important questions and answers for you in this blog post.

Interview with Maximilian Rimpfl from Interactive Brokers

Question: “Currently, the accounts for German customers are with Interactive Broker UK – What effects will Brexit have for German customers of Interactive Brokers?”

Maximilian Rimpfl: “Due to Brexit, Interactive Brokers is switching accounts for EU customers to IB Luxembourg, IB Ireland or IB Hungary. The geographical location primarily plays a decisive role. Western Europeans will switch to IB Ireland and IB Luxembourg. Eastern Europeans are being migrated to IB Hungary. For German customers it will be IB Ireland or Luxembourg. It remains to be seen what the end result of the EU / UK deal will be and to what extent German customers can stay with IB UK. “

Question: “German customers are likely to come to IB Ireland or Luxembourg. Can all products still be traded after the change? “

Maximilian Rimpfl: “There will be no restrictions for stocks, options and futures. At IB Luxemburg there is currently the problem that we cannot offer UK metals, bonds and leveraged Forex positions. This is because we are still in the process of clarifying the regulatory conditions. But we hope that this will be clarified soon. For IB Ireland we do not have any information about trade restrictions as we are still waiting for the final license. “

Question: “Will anything change with regard to the bank statements after the change?”

Maximilian Rimpfl: “Nothing will change with the standard account statements. The account number will change a little: Here the first digit will change – the rest of the account number will remain the same. “

Question: “Is the migration process different for private and business GmbH accounts?”

Maximilian Rimpfl: “No, it is the same process for all accounts, regardless of whether they are institutional or for private customers.”

Question: “Will anything change in the fee structure?”

Maximilian Rimpfl: “The fees are unlikely to change.”

Question: “How is IB’s deposit insurance up-to-date and how will it change as a result of Brexit?

Maximilian Rimpfl: “We are currently still insured with SIPC, which is a collective of brokers who invest in a security fund. Here the coverage is $ 500,000 with a cash limit of $ 250,000. However, values ​​in futures and options cannot be insured, but stocks and bonds can. With the change to the EU brokers, however, this insurance falls to € 20,000, but this is not due to IB itself, but what the regulators make available to us. I can understand every customer for whom this security is not enough, but you also have to understand that this insurance only takes effect if IB goes bankrupt – and we are currently very far from that. “

Question: “The following scenario after switching the accounts to the EU brokers: An account with a value of € 100,000, all cash is invested in shares – IB goes bankrupt, what happens then?”

Maximilian Rimpfl: “The maximum coverage after the deposit protection would be € 20,000 here.”

Question: “But I thought shares are special assets and not part of the deposit insurance?”

Maximilian Rimpfl: “We do not have this distinction under German law and we have no special status for these values. With us, shares are always traded as street names, which means that the owner is always Interactive Brokers. Of course, we can prove who owns which share. “

Question: “Why don’t you worry about deposit insurance and the fact that shares are not a special fund?”

Maximilian Rimpfl: “At 8.5 billion 6 billion, our equity is above what the regulators are asking of us. There is not a cent of customer deposits in this equity and we keep our equity strictly separate from our own money. In addition, we always have high margin requirements for individual products and thus protect customers in advance. “

Many thanks to Maximilian Rimpfl and Interactive Brokers for the detailed interview!

Watch the full interview:

https://youtu.be/t10XREl-81o

This post does not contain any paid advertising. We do not have any business relationships with Interactive Brokers (apart from our own depots). There is no remuneration for this video and the interview came about on our initiative.


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