Interactive Brokers - all eggs in one basket?

[fedra]

Well, as I’ve been reading all over to choose ETFs instead of single stocks so to fragment your risks, same should be for the broker you choose. If there wouldn’t be risks, why would they give IB a rating? (If not you could follow Buffett: “Keep all your eggs in one basket, but watch that basket closely.”)

For example as a total ignorant I was wandering about the effects of Brexit on the IB London account.

Also I’ve read in this forum that is the broker who owns the securities:

@hedgehog

Alex:

I don’t get it. Aren’t shares under our names already

No, under broker’s - in the electronic records in the computers of a central depository like DTCC or SIX, and then broker has its own electronic records that you’re the ultimate owner, that’s how it works

Unless you’re rich enough to afford to buy yourself a small bank and deal with a CSD directly…

(Or another alternative for cash strapped and truly paranoid is DTC’s Direct Registration System)

Alex:

Why would we need insurance in that case? Is it in case they aren’t really under our names or they’re stolen somehow? Or maybe in case the broker sells them without our consent?

Eggzactly

Or about what could happen to your cash:

@hedgehog

Err… can you be a bit less cryptic? The way I understood it is that each customer of IB is insured up to 30 million, not 30 million to share

Right. To share among all customers are 150 million worth of coverage.