Interactive Brokers’ New Policy You NEED to Know! 🚨

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In this video, I will be discussing and reviewing the new Interactive Brokers fund protection policy which is a major change for those people who have previously been with Interactive Brokers Hungary and will now be moved to Interactive Brokers Ireland as this, unfortunately, will lower the fund protection limit from €100K to only €20K, which is something you need to be aware of and something to consider when allocating your money across various brokers. Watch the video to find out if Interactive Brokers is still my broker of choice.
#interactivebrokers #ibkr #stockbroker

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6 окт 2024

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Комментарии : 117

@SmartMoneywithKai Год назад

🔵 INTERACTIVE BROKERS My personal broker of choice where I hold the majority of my investments smartmoneywithkai.com/ibkr 🟡 JOIN MY SMART MONEY CLUB www.smartmoneywithkai.com/smartmoneyclub

@Shinoku911 Год назад

This 20k or 100k euro does not count for your stocks, it is only for uninvested cash, you can have 10 million dollars portfolio and still you are fully safe in case of IBKR going out of business, some other broker will buy out the clients and move their stocks under their company. This applies for all regulated brokers like IBKR, XTB, Etoro and many others. The only way you can lose your stocks is in case of major fraud from IBKR side, but this is pretty much not possible to happen

@SmartMoneywithKai Год назад

Hi Jan, much appreciate your insights and I have heard the same, but did not manage to find this written. Would appreciate if you could share your source for that in case you have. Cheers

@RedHotAmarth Год назад

Can user lost his stocks due to the hack? Just selling to fiat and transfer to another service, or this kind of financial services is much better than spot accounts at crypto exchanges?

@persieprince9345 Год назад

@@SmartMoneywithKaiits happened before in 2011 a us broker goes bust people got their shares but that took them more than one month

@schraderclemens6122 Год назад

@@SmartMoneywithKaiAll of your stocks are special assets (sondervermögen in german) and are not held by your broker. This means they can‘t be touched in case of bankruptcy since they are not part of the brokers assets. The only possibility of you losing your funds if IBKR is a complete fraud and they don‘t even buy stocks with your money, just display it to you and stash that money on an off-shore account or something similar.

@schraderclemens6122 Год назад

@@RedHotAmartha stock brokerage is a lot safer than a crypto exchange. Make sure that there is multi-factor authentication activated and that funds can only be withdrawn to your specified bank account. That way, even if hackers got access and liquidated your stocks, they could only withdraw them to your bank account.

@boriskubicka4814 Год назад

It is quite naive to think that in the case of major problems, Hungary would rescue some IBCE and return the funds. The Hungarian government does not inspire confidence in me when it comes to fulfilling its commitments. Therefore, I am actually glad that IBCE is transforming into IBIE with higher enforceability of the law.

@SmartMoneywithKai Год назад

Hi Boris and thanks for sharing. Not sure if a EU country based guarantee is naive to rely on, as per that logic you should not be trusting any countries guarantees, we've seen how flaky even the US can be at times, so not sure how much I as a German can enforce the Irish banks more than the Hungarian ones:) For me I was very happy with this, €20K is just too low for most long-term investors.

@steveshuffle 2 месяца назад

I am 99,9% sure that this is about the cash your hold (uninvested) in your IB account. It's not about your stocks/etf investments

@SmartMoneywithKai Месяц назад

You are correct, that's for mentioning that 👌 Cheers

@balazslakatos9817 10 месяцев назад

that insurance limit is only matter if you keep cash in your portfolio, otherwise all the stock you bought will be registered on your name. I'm not sure the same rule applies to the frictional shares.

@joaomarques982 8 месяцев назад

That's what I wanted to know I beleive this does not apply to fractional shares. Anyways, I'm tring to find the place where they have this written.

@exrayZap-ry1gh 7 месяцев назад

at 1:39 Minutes "i don't want to bore you with all the details" and at 5 minutes in the answer is 20k not 100k ... for those not liking getting bored with all the details.

@SmartMoneywithKai 7 месяцев назад

😂🙌

@V.R.Capital Год назад

Hi! The 100k is for cash, in Latvia and in Lithuania it's the same, but 20k for investments. You can check it in the local bank. Thats not an IB fault, it's an EU thing.

@SmartMoneywithKai Год назад

Thanks a lot for sharing, great to hear. Heard the same, but would love to see it in writing from them somewhere, in case you have any sources, please share, much appreciated. Cheers

@GordanZ Год назад

Wait, what ? So does this 20k/100k neam for stocks or cash ? Because I am hearing for cash, not stocks ...

@SmartMoneywithKai Год назад

So apparently for cash, not stocks, which would be good, but again, I am yet to see this written somewhere.

@bjorn3152 4 месяца назад

Maybe a late comment but this is not valid anymore, your stocks are protected no matter what, as IBKR is just a custodian, if they were to go under you can transfer your assets to a different broker. ( the 20k insurance is there for futures loaned money or stocks etc) As for money, its a european requirement to have a 100k deposito insurance, your money is not stored with IBKR, it is for example stored on a JP Morgan omnibus account in Ireland or Germany. Those are real banks that give the 100k deposito insurance required by the ECB. Plus keep in mind that IBKR has the largest cash reserve of all brokers. You can probably combine all top 25 brokers and still not come close to the value IBKR holds.

@SmartMoneywithKai 3 месяца назад

Thanks for sharing, great points and 100% agreed, that's why most of my funds are kept with IBRK 🙌 Cheers

@chicago9458 2 месяца назад

Broker failure doesn’t affect portfolio holdings! Only cash should be your worry

@SmartMoneywithKai 2 месяца назад

Great point, which I will clarify in future updates 👌 Cheers

@RyolithRandil 4 часа назад

IBIE is okay due to private insurance on top of 20k

@SmartMoneywithKai Час назад

100% agreed, also the €20K was on cash only 👌

@CryptoRoyaleGameplays 9 месяцев назад

This is only for cash balance, stocks are gonna get bought out by other brokers in case of bankruptcy so I wouldn't really worry about it.

@SmartMoneywithKai 9 месяцев назад

Thanks a lot for your comment and clarifying and you are absolutely right, learned about this fact only after the video, so will update this in future videos. Good to know and I feel very good keeping majority of my portfolio over €20K with IBKR👌 Cheers and happy new year ahead🚀

@Taoikonomika_einai_polycool Год назад

I have a dejavu from revolut, where you made a similar video! :)

@SmartMoneywithKai Год назад

😂I guess it won't be the last one of such videos. It's a dynamic industry and it seems for every new app that launches something good, eventually it will change it again, but I think this keeps us as investors on our toes to make sure we protect and grow our funds in the best possible way. Cheers

@BombasticGA Год назад

That's irrelevant actually for your case because the protection is only for uninvested funds.

@SmartMoneywithKai Год назад

Hi and thanks for your comment. Where did you read that part that it only applies to uninvested funds? Cheers

@gregor6111 2 месяца назад

Thanks! Great video!

@SmartMoneywithKai 2 месяца назад

Great to hear and my pleasure 🙌

@JacobTaff-r5o Месяц назад

Hey so I’m 23 years old and I have a decent bit of money in stocks but the platform I use it made more for beginners and don’t have very friendly fees for moving large numbers. I’m planning on investing $2000 a week for the next 7 years in a few etfs. Is IBKR going to be a good choice? I am from NZ

@SmartMoneywithKai Месяц назад

Hi and well done for making good money and wanting to invest it early on. And absolutely, I think IBKR can be a fantastic option for that, you are really gonna be having one of the most solid and trusted brokers available in most countries worldwide 👌 Just watch a couple of my tutorials on them to get the hang and then you will be good to go. Cheers

@DyIIu 2 месяца назад

a very good change, keeping money based in Hungary is pointless given the current policy of this country, which is against the West. Paradoxically, your money is much safer in Ireland than in Hungary.

@SmartMoneywithKai 2 месяца назад

I am also happy with the merger 👌

@garysmith3068 9 месяцев назад

I am a client of IBKR Ireland, however Irish clients are dealt with through IBKR UK. Therefore, you cannot buy say, airline stocks on the local exchanges. For example, I needed to buy Ryanair under the RYAAY ticker on the NASDAQ.

@SmartMoneywithKai 9 месяцев назад

Thanks for sharing, to be honest I also prefer buying US listed stocks to have FX hedge as well but I guess that's personal preference. Cheers

@MISPRIT_ 7 месяцев назад

And when is this merger going to happen? It's been five months.

@SmartMoneywithKai 7 месяцев назад

Hi, this is what it said in their communication 'This decision was recently made and our objective is to complete the process sometime in 2024' So I guess sometime this year 😉

@Melchiorreu 7 месяцев назад

This seems to be a good example of clickbait. Everyone knows that the protected amount applies only to cash. Stocks are special assets.

@SmartMoneywithKai 7 месяцев назад

That wasn't the intention but just raising awareness about your cash-holdings protection which is equally important to be aware about. Thanks for watching ✌️ Cheers

@Dr.Goldstajn Год назад

But the risk only appears when you hold cash - stocks are not affected

@SmartMoneywithKai Год назад

Hi there and thanks for sharing, could you let me know where you saw this written as I did not find it in the FAQ. Cheers

@gc7479 Год назад

I think that what Dr.Goldstajn is saying is true. All your stocks are owned buy you and not by broker. This means if broker goes bankrupt then you still own your stocks. You can then transfer them (if supported by broker) from one broker to another one through Automated Customer Account Transfer Service (ACATS). This is the most important part to check with your broker if they support this function. As far as I know IB does offer this feature. And finally as far as I do understand then secure funds are related only to free cash.@@SmartMoneywithKai maybe you can call IB - find out all this information and make another video about this. Thanks

@SmartMoneywithKai Год назад

Thanks a lot for sharing your thoughts and sounds logical. Will definitely get in touch with IB regarding this issue. Many thanks.

@ricardoruiz2800 7 месяцев назад

Why not instead of leaving cash in your account you just buy money market funds?

@SmartMoneywithKai 7 месяцев назад

Hi mate, good point and since then I have over €90K in high yield savings accounts 👌 Cheers

@pepudin 9 месяцев назад

So does this mean that IBKR has same protection as Revolut now?

@SmartMoneywithKai 9 месяцев назад

But it seems for your cash only, invested amounts still as always and fully segregated accounts, so even if they go bust, your securities will be taken over by another bank/broker so you are actually in pretty good hands with them. I am over €20K with them and have no concerns. Cheers

@ToungeLaxier 11 месяцев назад

I have saved the transactions were IB was stealing my money. Best bet is to move your investments to cash

@SmartMoneywithKai 11 месяцев назад

What do you mean by 'IB was stealing your money'?

@gaborcser9000 3 месяца назад

Hi Kai, I use the ibkr TWS, but in this platform there is no option to approve the PRIIPS KID. Do you know how can i approve and accept the KID when I buy/sell?

@SmartMoneywithKai 3 месяца назад

Hi, I don't use TWS, but maybe try the web portal and check under settings and permission, there you should find most of those. Cheers

@arc_invests 10 месяцев назад

Hi, did you get this confirmed from IBKR that US stocks are covered by SIPC and the 20k applies to uninvested cash ?

@SmartMoneywithKai 10 месяцев назад

Hey there👋 Yes, according to IBKR (Interactive Brokers), US stocks are indeed protected by SIPC, ensuring your investments have a safety net. ✅ As for the uninvested cash, it's safeguarded up to $20K. It's always a smart move to double-check these details directly with IBKR for the latest updates and peace of mind. Stay savvy with your investments! Cheers

@yarosyari3516 4 месяца назад

Hi, do you know why I'm not able to trade CEF and options since last week, they offer me to answer questions agin and stack on income confirmation, but everything was good before. What to point in my questionnaire for I can trade CEF +options again?

@SmartMoneywithKai 4 месяца назад

Hi 👋 It sounds frustrating to be stuck in this situation. I don't trade options but here’s what you can do: Revisit Your Account Settings: Make sure your account is still set up for trading Closed-End Funds (CEF) and options. Sometimes, settings can reset or change. Answer the Questionnaire Accurately: Go through the questionnaire carefully. Ensure that your answers reflect your knowledge and experience with trading CEFs and options. They might be checking if your profile matches the risk level required for these trades. Income Confirmation: If they're asking about income confirmation, double-check that your financial information is up to date and accurately reflects your current situation. Contact Support: If you're still having issues, reach out to Interactive Brokers' customer support directly. Explain your situation and ask for specific guidance on what needs to be adjusted. Make sure to provide all the necessary details they require to verify your trading capabilities. Cheers, Kai

@yarosyari3516 4 месяца назад

@SmartMoneywithKai Is there a separate option for trading CEF? Can you point please

@SmartMoneywithKai 4 месяца назад

Hi, I don't trade CFD's, but you can find more about it here www.interactivebrokers.co.uk/en/trading/products-cfds.php Cheers

@xkwantified Год назад

Yes, this sucks. Same thing some time ago for the IBKR resellers in Germany (Captrader, Lynx, Banx etc)👎

@SmartMoneywithKai Год назад

Really annoying, this way if you are serious about building long-term wealth, you need like 50 brokers to be fully protected😂

@tdtesla Год назад

lol 😂@@SmartMoneywithKai

@ИлияКеров 5 месяцев назад

What do you think about Admirals? They offer coverage up to 100 000 euros.

@SmartMoneywithKai 5 месяцев назад

Hi. I don’t like leverage & CFD trading so for me not very appealing.

@ИлияКеров 5 месяцев назад

@@SmartMoneywithKai They offer investing in stocks too.

@SmartMoneywithKai 5 месяцев назад

But they clearly are pushing CFD's as this is where they make the money and they make the line very blurry, especially for beginners that's not right. Trading 212 has multiple warnings of the risk of CFD trading which is missing there, but if you like it, go for it.

@ИлияКеров 5 месяцев назад

@@SmartMoneywithKai Which brokers do you recommend for Bulgaria?

@SmartMoneywithKai 5 месяцев назад

Given that Trading 212 has its roots from Bulgaria, definitely Trading 212 or of course Interactive Brokers 👌

@knowledgeseeker5499 Год назад

Do you guys comes under PDT rules or Not after change?? In UK , we are under IBKRLLC, USA and PDT rules

@SmartMoneywithKai Год назад

Hi there, not 100% sure as I am not a frequent trader, but looks like not, found this one ' The short answer is no - the pattern day trader rule does not apply in the UK. If your trading broker is not regulated by FINRA - ie it is regulated by an authority outside of the US - you will not be bound by the pattern day trader rule.' Cheers

@knowledgeseeker5499 Год назад

@@SmartMoneywithKai IBKR UK is following FINRA rules because all uk accounts are held or managed by IBKR LLC, USA

@maximbelitskiy6695 Год назад

Hi, Kai! Thank you for highlighting such important change. The question I have - do you own a EU stocks at IB? If to use it only for US stocks looks pretty comfortable, right?

@SmartMoneywithKai Год назад

Hi Maxim, technically yes, at least it said so under the Hungarian term sheet, now in the Ireland term sheet I could not see any mention of SIPC actually which is weird. Will check more, they should really make this clearer, should be a USP of a broker not something we need to hunt for:( Cheers

@DavidBorg-mf6zx 8 месяцев назад

Hi Kai, so if I’m holding $TSLA stock then I should still be covered by the SIPC is that correct? Are you saying that this only affects euro stock holdings? Thanks

@SmartMoneywithKai 8 месяцев назад

Hi David 👋 Absolutely, holding $TSLA or any other U.S.-listed stocks means you're covered by the SIPC, protecting against brokerage failure, not market losses👌 Cheers

@suttyotolvajfideszbanda5983 5 месяцев назад

Why not Vanguard??? Are you Hungarian??

@SmartMoneywithKai 5 месяцев назад

Hi and no, I'm German and I prefer having a broker so I can buy various investment assets not just Vanguard issued instruments. Cheers

@rakkirry6263 9 месяцев назад

Hi how to long-term investment in interactive broker pls tell me

@SmartMoneywithKai 9 месяцев назад

Hi there, you just buy the stocks you want to own and hold on to them for a long-time😉 Cheers

@rakkirry6263 9 месяцев назад

@@SmartMoneywithKai thanks to reply 🙏

@rakkirry6263 9 месяцев назад

I'm from India I'm staying in uae 3 years visa only how to open interactive brokers any video clip

@SmartMoneywithKai 9 месяцев назад

@@rakkirry6263 Sure you can do that👌This video might be useful. Cheers ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-9TaaKz96rnI.html

@MrAyanvimal 5 месяцев назад

what about webull uk are they good ?

@SmartMoneywithKai 5 месяцев назад

Hi, I don't have access to Webull but heard good things about it. But with Interactive Brokers you will be in very safe hands as they have the longest track-record and are US-stock listed 👌

@donryan1025 23 дня назад

If you hold a van eck semiconductor etf ucits acc usd, would that be protected by SIPC as in its in dollars even do its a european etf? I thought i saw that anything done in usd is protected by SIPC

@SmartMoneywithKai 20 дней назад

Your investment in the VanEck Semiconductor UCITS ETF Accumulating USD would not be protected by SIPC because it's a European ETF not registered with the SEC. The currency denomination does not impact SIPC coverage. To ensure your investments are protected under SIPC, you would need to hold SEC-registered securities within an account at an SIPC-member brokerage firm.

@yutube5167 3 месяца назад

question- we cannot trade futures if we use cash account in interactive brokers?

@SmartMoneywithKai 3 месяца назад

Hi and no I believe you need to switch to margin for that 👌

@zm8242 Год назад

Can i buy VUAA in INBR?

@SmartMoneywithKai Год назад

Hi there and yes, you can👌

@WardL Год назад

Always the small print 😉

@SmartMoneywithKai Год назад

True story😉

@jamalakhaligova9125 Год назад

I have a question about buying ETFs in Interactive Brokers. I tried to buy VOO (ARCA )ETF but I am getting an error related to "PRIIPS KID". I found on the Internet that it is EU regulation and we aren't able to buy US ETF, just EU ETFs are available (I live in Hungary). Where can we buy ETFs then? Is there a way to solve this error in Interactive brokers? Much appreciated and thanks in advance

@SmartMoneywithKai Год назад

Hello Jamala, this is not a IB problem, but EU regulation problem, none of EU citizens can technically buy US listed ETF's like VOO. Instead you need to buy UCITS ETF, which mirrors the US one. I buy VUSA which is the VOO equivalent in Europe, you can have a look at it. Cheers

@ybuenoo 7 месяцев назад

The only way to buy American ETFs having an European account is through options exercise. Before doing that you will need to know your withholding taxes between your country and US. Also it may be a better option to buy an UCIT ETF that replicates the ETF you are looking for.