Whenever you spend capital, you want to make sure that the person or institution you’re paying will be there, well and truly, after the transaction closes and for many years to come.
It can bring you the comfort you desire.
The last thing a person wants to feel is insecurity, especially when handing over large amounts of hard-earned money to invest in a product or business.
So, what characteristics should you look for in a broker when you want to acquire shares of a public company like those on the stock exchange, regardless of their location in the world?
First, you want to check that your broker has a strong capital position, which means they can handle the trade and the order execution. You wouldn’t want to put your money in a broker account that can’t guarantee that your funds will be safe or that the order will be executed as you wish.
Holding over $10 billion in capital gives Interactive Brokers a distinct advantage, as they are one of the largest equity and capital managers in the world. Plus, having $7.1 billion in excess regulatory capital means you can rest assured the company isn’t going anywhere anytime soon.
Seeing if the broker is also publicly listed can provide additional confidence, as many regulatory hurdles had to be cleared just to get listed. In the case of Interactive Brokers (NYSE: IBKR), the company is listed on Nasdaq.
If a company is listed on a stock exchange and operates worldwide, it also means that wherever there is an outlet, it must be regulated and comply with the terms and conditions of that jurisdiction.
Knowing that there are 1.7 million clients worldwide using the Interactive Brokers service also gives confidence that the money management company will be there, not only after your trading order is executed, but also after its sale (hopefully long the track).
Performing approximately 2.5 million daily average income (or DART) trades also gives the assurance that you are not the only person to rely on Interactive Brokers for their services.
For more information on Interactive Brokers, visit this site.