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Interactive Brokers regulation: what happens if the firm fails

The licence is what decides where your money sits and who is obliged to do something about it. Here is who licenses Interactive Brokers and what the protections are.

Facts last checked . Read the full Interactive Brokers review.

Regulation and safety

Regulated by
SEC, FINRA, CFTC/NFA, FCA, ASIC, Central Bank of Ireland, CIRO, MAS, SFC and others
Regulator tier
Tier 1
Register entry
FINRA BrokerCheck / NFA BASIC / applicable national registers
Client money segregated
Yes
Held at
Multiple qualifying banks/custodians
Negative balance protection
Entity/product-dependent
Compensation scheme
SIPC up to $500,000 including $250,000 cash limit for eligible US securities accounts; jurisdiction-specific schemes elsewhere
Audited by
Deloitte & Touche LLP
Not available to
Sanctioned/prohibited jurisdictions and countries where IBKR cannot legally provide accounts

Check the licence yourself: the SFC public register.

What this means

The licence is what decides where your money sits and who is obliged to do something about it.

Interactive Brokers holds tier-one authorisations from ASIC, FCA, MAS, CFTC/NFA and CIRO. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

ASIC caps retail leverage at 1:30, requires negative balance protection, and obliges the broker to hold client money in a separate trust account.

The FCA caps retail leverage at 1:30, mandates negative balance protection, and covers eligible clients under the Financial Services Compensation Scheme.

The Monetary Authority of Singapore applies some of the tightest conduct requirements in the region, and fewer firms hold its licence.

Client money is held separately from the firm's own money, at Multiple qualifying banks/custodians. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Covered by SIPC up to $500,000 including $250,000 cash limit for eligible US securities accounts; jurisdiction-specific schemes elsewhere, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about Interactive Brokers regulation

Is client money segregated at Interactive Brokers?

Yes. Interactive Brokers holds client money separately from its own funds, at Multiple qualifying banks/custodians.

Does Interactive Brokers offer negative balance protection?

Negative balance protection at Interactive Brokers is recorded as: Entity/product-dependent.

Is there a compensation scheme at Interactive Brokers?

Interactive Brokers's compensation scheme is recorded as: SIPC up to $500,000 including $250,000 cash limit for eligible US securities accounts; jurisdiction-specific schemes elsewhere. A scheme covers the broker failing, not losses on your trades.

Regulation at brokers under the same regulator

More about Interactive Brokers