Interactive Brokers Ireland: European broker for non-residents

This distinction is the first thing to understand, and it is the one comparison sites most often gloss over. A broker licensed in the European Union falls under the investor compensation scheme of its licensing country, not under the bank deposit guarantee scheme.

The Irish scheme covers 90%¹ of the amount lost, up to a limit of figure being updated per investor. The gap with the European banking ceiling is considerable, and it does not mean the same thing.

This scheme does not cover a fall in the value of an investment: it applies if the investment firm fails and cannot return its clients' assets. The securities held are also segregated, meaning they are kept separately from the broker's own assets.

In practice, the question to ask is therefore not “am I covered up to such an amount?” but “are my securities segregated, and with which custodian?”. It is segregation that protects a portfolio, with compensation only covering its failure.

We publish no pricing for this provider: its website blocks automated access, and we do not cite a price we have not read at its source. Brokerage fees, any inactivity fees and currency conversion fees must be taken directly from the fee schedule of the Irish entity, which differs from that of the US entity.

This precaution is not a formality. Fee schedules within the same group vary from one entity to another, and the documentation circulating online commonly mixes up US and European terms.

The entity that opens the account depends on the declared country of residence, and it determines the applicable regulator, compensation scheme and fee schedule. A move abroad may therefore lead to a transfer to another entity.

This is the question to ask before opening, and to ask again at each change of residence: the answer determines everything else, and it cannot be read in any comparison site.