Cryptocurrency Q&A
Can I use Interactive Brokers as a bank?
Can I use Interactive Brokers as a bank?
SamuraiWarrior
Sat Oct 12 2024
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5 answers
773
I am considering using Interactive Brokers for my financial needs and I am wondering if it can serve as a bank. I would like to know if it provides similar services to a traditional bank.
5 answers
Riccardo
Mon Oct 14 2024
IBKR operates as a regulated securities broker-dealer, distinct from traditional banking institutions. This distinction is crucial as it impacts the types of financial instruments and services we can offer to our clients.
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Alessandra
Mon Oct 14 2024
Specifically, IBKR does not classify itself as a bank and, therefore, adheres to a different set of regulatory guidelines. This means that we cannot engage in certain banking activities, such as holding securities to maturity (HTM).
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CryptoWizardry
Mon Oct 14 2024
HTM securities are typically held by banks for investment purposes, with the intention of holding them until maturity. They are not subject to the same market-to-market valuation requirements as other securities, making them unsuitable for IBKR's brokerage services.
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KimonoGlory
Mon Oct 14 2024
Furthermore, IBKR cannot provide unsecured, long-term loans to our clients. This restriction stems from our status as a broker-dealer, which primarily facilitates the trading of securities rather than offering traditional lending services.
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SumoMighty
Sun Oct 13 2024
Despite these limitations, IBKR offers a wide range of services tailored to meet the diverse needs of our clients. These services include but are not limited to equities, options, futures, and foreign exchange trading, as well as margin lending and custody services.
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