Hello, this is my first post here. Not on the topic directly, but I was attracted to this lively discussion. My concern is that IBKR, as opposed to some other large brokerages, does not compensate in case of fraud, as it has been clear from this discussion. I raised the question a few months ago on the Bogleheads forum, as it is apparently a weakness of the IBKR.
Unfortunately, as European investors we donât have access to Vanguard US and are left with less optimal or generous options. My personal dilemma is whether to to go on with IBIE (I am Dutch) and invest in VT, or rely more on large Dutch banks where I am limited to the UCITS products and AUM fees, that in total cost some 0,5% per year more. But I believe the Dutch banks compensate in case of fraud if it is not due to your gross negligence.
Yes, it does, when my put option expires:) For me it is not a huge problem to buy VT by selling a put option, but indeed it is not possible to buy VT directly on ARCA.
Yes, thatâs correct, we have access to Northern Trust Dutch-domiciled funds that mostly avoid leakage of DWT. But NT funds have active ESG screens, I prefer to avoid them.
Thatâs the important part. And Iâm sure that Vanguard also would not reimburse if someone gets access to your account and does activities from there, theyâll argue that according to this section this person was âauthorizedâ. Believe me, such large institutions have enough measures in their repetoire to avoid paying in most cases.
I have a feeling that IBKR is more positioned to serve professional investors, or at least active ones. Vanguard, by its nature, is serving retail, so they look like to be more inclined to be lenient. But anyway, Vanguard US is of no reach for the European investor.
In my case the system banks have an advantage: theyâre local, which makes it easier to deal with them. If the total costs would be the same between IBKR and banks, I would not bother with IBKR, but alas the banks are expensive, so IBKR makes sense cost-wise.
Even though I understand concerns over IBKR. I was wondering if there has been any publicly reported (and confirmed) incident of data leak, financial fraud or mass hacking for IBKR?
I wonder if with the arrival of SIC5 (instant payments for retail customers), brokers like Swissquote are required to offer deposit/withdrawal services before or after executing a securities/ETF purchase order, or if itâs only account-to-account transfers.
Additionally , what about IBKR? Will the arrival of SIC5 also enable instant transfers to and from IBKR?
The whole discussion led me to think about transferring a part of the assets to my main bank, ZKB.
AAA rating, state guarantee (unlimited), etc. - but this comes with a fee of 0.4% p.a. They know that they are probably the safest bank out there and cannot/will not change the coniditions (I am a too poor for them anyway, haha ).
But when thinking about having the assets safe with CH jurisdication, I can imagine to hold it there. No purchases, but holding. Maybe in far future selling some shares, but thatâs it.
I will probably close my UK account at IBRK and will continue with the US account, buy further stuff and transfer some assets once I hit a higher range.
Also thought about Saxo (Geely holding possesses roughly 49% of it), SQ (but just closed the account with them due to inactivity) and PostFinance. But I will probably stick with ZKB, since I have already an existing relationship with them. Buying securities at IBRK and transferring them regularly to ZKB, I could live with that.
@naman.1 the posts in reddit linked above say the following:
âI have been informed that it is not just with me but a lot of other people were also impacted as their MFA was hackedâ
Q) Who informed you âthat a lot of other people were also impacted as the MFA was hackedâ?
âsomeone hacked my username and password including MFA. That day, I wasnât receiving any codes and the hacker was somehow was able to hack the MFA.â
Q) Any idea how they hacked the MFA? For example did they steal your phone or somehow hack your phone number?
I recently changed phone - iirc the transfer of MFA to the new phone was done via sms as per IB guide here. Is that how they did it?
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