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International investing accounts

  1. #41

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    Mar 2010
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    would a 4% probability look better ?

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  2. #42

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    Feb 2015
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    Quote Originally Posted by Jeff_
    According to jrkob, there is a 5% probability of IB defaulting within the next 10 years.
    Just to clarify, it's not what I'm claiming or think, it's what the credit raters imply via their rating. If you look at historicals though, the correlation between credit rating and default probability of corporates is strong, overall.
    Still this discussion started, I have not reduced my holdings with IB. Still about 10% of my portfolio with them.

  3. #43

    Join Date
    Jun 2011
    Posts
    33

    Why would your investments be at risk if IB default? Aren't they are legally required to hold your accounts in separate custody? Your assets are under their management but not owned by them.


  4. #44

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    Oct 2010
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    See MF Global.

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  5. #45

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    Quote Originally Posted by kittykaitak
    Why would your investments be at risk if IB default? Aren't they are legally required to hold your accounts in separate custody? Your assets are under their management but not owned by them.
    You asked the question in post #10 and my response would not change. Perhaps I can try to elaborate. Yes, clients assets have to be held in separate accounts, so that they don't fall in the bankruptcy of the broker. However, as the broker starts going down and attempts to save itself, by whatever means, probably "temporarily" in the mind of the broker, so does the risk of fraud. The risk I'm specifically alluding to, is the broker seizing some of its clients assets to improve its liquidity position temporarily, just the time for things to turn around. The broker "hopes", or so to speak, to be able to return its clients their assets.

    On the one hand there is what the regulators say financial institutions should do, and on the other there are the practicalities of the real world. Assuming financial institutions will always follow regulations under any circumstances, in my opinion, isn't safe.
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  6. #46

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    Jun 2011
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    Thanks, that does clarify.


  7. #47

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    Quote Originally Posted by kittykaitak
    Thanks, that does clarify.
    You're welcome. And note that this is merely my personal opinion.
    (as I have stated)
    My earlier response was a little abrupt, I apologize for this.

  8. #48

    Join Date
    Oct 2017
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    3

    So, from HK, apart from IB (which is cost effective), is Saxo the next best option? Any other alternatives which are cost effective, for international investing across several exchanges?


  9. #49

    Join Date
    Oct 2006
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    Quote Originally Posted by Thotfulnvestor
    So, from HK, apart from IB (which is cost effective), is Saxo the next best option? Any other alternatives which are cost effective, for international investing across several exchanges?
    There is also DBS / DBS Vickers.

    You can also have a look at Internaxx, although its not HK based.

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