Alternatives to IB?

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GettingFIREd
Posts: 6
Joined: Mon Sep 03, 2018 10:55 pm

Alternatives to IB?

Post by GettingFIREd » Sat Mar 23, 2019 2:24 pm

Hi all,

I'm an expat based in HK (non-US citizen), saving and investing for early retirement. Since I started working, I have been using IB to invest in Ireland-domiciled ETFs. However, as my portfolio grows, I find it too risky to put all my retirement assets in one broker. I wonder what brokers people use as alternatives to IB and what are your experiences with them. Also curious about other ways to manage risks of broker failures. Thanks in advance for any input!

sharukh
Posts: 184
Joined: Mon Jun 20, 2016 10:19 am

Re: Alternatives to IB?

Post by sharukh » Sat Mar 23, 2019 4:54 pm

Saxo but they charge annual custodial fee.

DJN
Posts: 277
Joined: Mon Nov 20, 2017 12:30 am

Re: Alternatives to IB?

Post by DJN » Sat Mar 23, 2019 9:34 pm

Hi,
Internaxx works ok. deGiro is good and they have a list of "free" etfs.
DJN

vu8
Posts: 260
Joined: Tue May 29, 2018 10:15 am
Location: Columbus, Ohio

Re: Alternatives to IB?

Post by vu8 » Sat Mar 23, 2019 9:39 pm

You're probably going to be fine with IB, don't worry too much about it, IB is probably one of the best full service discount brokers out there, just keep your assets over 100k, and sleep well with your Vanguard assets

RedDawn
Posts: 2
Joined: Wed Mar 27, 2019 10:18 pm

Re: Alternatives to IB?

Post by RedDawn » Wed Mar 27, 2019 10:36 pm

IB ensures funds up to 500k, doesn’t it? What would happen if case the portfolio is bigger?

ICH
Posts: 211
Joined: Wed Jun 13, 2018 3:08 am

Re: Alternatives to IB?

Post by ICH » Thu Mar 28, 2019 11:16 am

RedDawn wrote:
Wed Mar 27, 2019 10:36 pm
IB ensures funds up to 500k, doesn’t it? What would happen if case the portfolio is bigger?
Interactive brokers is a SIPC member.
The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash.
https://www.sipc.org/for-investors/what-sipc-protects

If Interactive Brokers one day decides to become a Ponzi scheme for some reason and nobody notices it, you may get affected if you have more than that in there.
I am emphasizing the
and nobody notices it
because we are talking about a NYSE listed company, regulated by the SEC, the SIPC and I don't know who else. We are not talking about a Bermuda based coorporation, whose offices are limited to a P.O. Box and whose shares are traded in the street!

megatron1911
Posts: 2
Joined: Fri Mar 29, 2019 2:52 am

Re: Alternatives to IB?

Post by megatron1911 » Fri Mar 29, 2019 3:12 am

GettingFIREd wrote:
Sat Mar 23, 2019 2:24 pm
Hi all,

I'm an expat based in HK (non-US citizen), saving and investing for early retirement. Since I started working, I have been using IB to invest in Ireland-domiciled ETFs. However, as my portfolio grows, I find it too risky to put all my retirement assets in one broker. I wonder what brokers people use as alternatives to IB and what are your experiences with them. Also curious about other ways to manage risks of broker failures. Thanks in advance for any input!
Highly imteresting question, i don't think jurisdictionnal hedging/diversification is such a bad idea. Also never forget US estate tax (which i think there is no treaty for with HK - that is directed towards posters discussing SIPC protection of USD 250k, which is more than 4x the estate tax exemption limit of USD 60k).

ICH
Posts: 211
Joined: Wed Jun 13, 2018 3:08 am

Re: Alternatives to IB?

Post by ICH » Fri Mar 29, 2019 1:45 pm

megatron1911 wrote:
Fri Mar 29, 2019 3:12 am
(which i think there is no treaty for with HK - that is directed towards posters discussing SIPC protection of USD 250k, which is more than 4x the estate tax exemption limit of USD 60k).
One should not keep large amounts of cash in a brokerage account - irrespective which brokerage. There are plenty of banks for that purpose.

The abive 60k US Estate tax cannot possibly apply to non-US domiciled ETFs and other non-US dom assets.

QuantOfAsia
Posts: 10
Joined: Sun Apr 14, 2019 7:57 pm
Location: Hong Kong

Re: Alternatives to IB?

Post by QuantOfAsia » Sun Apr 14, 2019 8:22 pm

Interactive Brokers and Saxo are the two based "global brokerage" platforms to use in my opinion, and Saxo's custody fee may be worth it for the peace of mind of the external custodian (they use Citi as global custodian for securities). In Hong Kong, you can also open an individual account directly with HKSCC to custody your local shares and ETFs here: https://www.hkex.com.hk/Services/Settle ... sc_lang=en

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