Some relevant reading here What If My Broker Goes Bust? The Truth About Protection Schemes.
So what would be the maximum amount in CHF that you would feel comfortable putting into your single IBKR(Interactive Brokers) account? Does anyone know if IBKR goes bust, are the stocks we own safe? (my shares in META, GOOGLE etc)
Shares should belong to you, not the broker.
That is what is stated always. However, I do not want to imagine how complicated it would be to get your shares if IBKR goes burst. I’m feeling ok now with having more or less half of my portfolio at IBKR and half at PF.
Either you trust your depositor or you don’t. The amount should no matter in my opinion. Stocks at your broker or depositor (Like Credit Suisse) are in the segregated assets category and can thus not be used to repay creditors. (Segregated Assets Explained - moneyland.ch)
Edit: If all the protection schemes fail I would boldly predict that we have much greater problems going on to care about.
Is there any example where a broker got burst and the clients got their shares afterwards? We see now with the SVB that clients get their insured money back but even that takes time. So I do not want to imagine how complex it is to get all shares to the right person if a big broker go under. Scary thought
Are you sure, about taking time?
SVB was shut down by regulators on Friday, and the Biden administration announced Sunday night that all depositors at the failed Silicon Valley Bank would have access to all their money on Monday morning.
That didn’t seem to take a lot of time, but of course can’t confirm from personal experience.
…in principle, yes.
That said, since the GameStop saga has made it well-known how naked short selling allows for the creation of what are basically fake shares, I’d remain cautious. Especially since they’re engaging in share-lending practices - at least on margin accounts?
A third of my liquid assets.
Rather than giving a fixed number, I’d look at it relative to your wealth.
Yes, you should disable securities lending and not use any margin if safe custody is your top priority.
My IBKR account currently holds about 40% of my assets. I like not having everything at one broker but I’m also not worried if the IBKR part increases a bit.