IBKR’s plans to merge its two EU broker-dealers into a single Irish-licensed investment firm.

  1. What are IBKR’s plans for its EU operations?

    In the lead-up to Brexit, IBKR created two strong broker-dealers in Europe – Interactive Brokers Ireland Limited or “IBIE” and Interactive Brokers Central Europe Zrt. or “IBCE” – which have allowed us to service our European clients and significantly expand our European business.

    IBKR has now made the strategic decision to integrate those two broker-dealers into one entity, regulated in Ireland, while retaining a significant software development and operational services presence there.

  1. Can you explain why you are making this change?

    This change will allow us to focus on one set of regulatory requirements and offer a consistent product offering throughout Europe while continuing to achieve our goals and provide clients with high quality investment services.

  1. How will this affect IBCE clients?

    After the merger, IBCE client accounts will be serviced through IBIE. We are evaluating the most efficient and client-friendly way to do this and will provide clients with additional information after we finalize our approach.

  1. How will this affect IBIE clients?

    IBIE clients should not be affected by this change.

  1. When will this change happen?

    This decision was recently made and our objective is to complete the process sometime in 2024. We will work with the relevant supervisory authorities and provide more information as our process evolves. We look forward to your continued support as we grow and strengthen our European business, including a detailed roadmap regarding any and all steps clients will need to take in connection with this merger.

  1. Can you provide more information about IBIE?

    IBIE is an investment firm regulated by the Central Bank of Ireland and authorised pursuant to the second Markets in Financial Instruments Directive (Directive 2014/65/EU).

    IBIE is an affiliate of IBCE and both firms are wholly-owned subsidiaries within the broader Interactive Brokers Group. IBIE is the Interactive Brokers Group’s largest investment firm in Europe, with more than 350,000 clients.

    IBIE’s website is https://www.interactivebrokers.ie/en/home.php, which includes the firm’s contact information and information about its regulator, the Central Bank of Ireland.

  1. Will IBKR’s commissions and fees change when my account is transferred?

    No. IBKR commissions and fees will not change when you move from IBCE to IBIE. However, interest rates paid on cash at IBIE may differ from the rates that apply in the IBCE CYEP program. You can visit our websites to compare.

  1. Will I have access to the same trading platform or be subject to any software changes following the transfer of my account?

    The transfer of your account will have no impact upon the trading platform or software you use to trade or administer your account. The technology will remain the same.

  1. Will my access to products change when my account is transferred?

    No. Your current access to products will not change when your account is transferred.

  1. Will this consolidation affect the products I can hold or trade?

    IBIE clients can access and trade the same products and services available at IBCE now, as well as some additional services. Specifically:

    • IBIE clients can trade OTC Spot Metals (Gold and Silver) and OTC Futures on LME Metals.
    • IBIE clients can hold 24 currencies, compared to the 10 currencies offered by IBCE. As you can hold all trading currencies in your IBIE account, there is no auto-FX to your base currency in IBIE.
    • IBIE pays interest on your cash balances so your current IBCE CYEP program will no longer apply.
  1. How am I protected against loss? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBCE?

    As investment firms, both IBCE and IBIE are required to keep client funds segregated from their own funds so that if either of them becomes insolvent, client funds will not form part of their property for insolvency purposes and will be returned to their clients.

    In certain cases, if an investment firm has failed to properly segregate client funds, it may not be possible to return these funds to the client should the firm becomes insolvent. Both Ireland and Hungary have compensation schemes in place to provide certain protections to clients if this happens. A key difference between those schemes is that the maximum amount of protection under the Hungarian scheme is €100,000, while the maximum amount under the Irish scheme is €20,000.

    You can find full details of the Irish scheme on https://www.investorcompensation.ie and of the Hungarian scheme on https://bva.hu/en/. Information about the Hungarian scheme is also available on IBCE’s website in the Announcement on the protection of investors: https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=4531.

  1. Will the current cost basis of positions be carried over when my account is transferred?

    Yes. The transfer of your account will have no impact upon the cost basis of your positions.

  1. Will the transferred account retain the same configuration as the current account?

    The configuration of the account following transfer will match that of the current account to the extent permissible by regulation. This includes attributes such as margin capability, market data, additional users and alerts.

  1. Will my login credentials change?

    No. Your username, password, and any 2-factor authentication process in place for your existing account will remain active following transfer. You will, however, be assigned a new account ID number for your transferred account.

  2. How will this affect my TBSZ account?

    TBSZ accounts should not be affected by this change. After the merger, TBSZ accounts will be serviced through IBIE.