Risk Management - Strength and Security

Strength and Security


Risk Management

Conservative and Prudent Risk Management

Interactive Brokers' conservative and prudent approach to risk management safeguards your assets.

Where permitted by local client money regulations, Interactive Brokers invests client money in short-term government securities, typically those maturing in a few months. As such instruments have low interest rate sensitivity, realized losses are minimal if we need to sell these investment prior to maturity. Compare our risk management policies with banks and other brokers that are not required to immediately recognize losses on their investments and who invest in longer-term assets to maximize their current profits. Interactive Brokers' prudent risk management approach allows us to pay high rates on deposits and charge the low rates on margin loans because we are always invested in the current short-term benchmark rate.

Interactive Brokers Hong Kong Ltd (IBHK) holds client money in Hong Kong in designated and segregated client money bank accounts in accordance with the applicable client money rules.