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Anonymous

01 Feb 2021

General Investing

How safe is my investment with Tiger brokers?

With the recent GME saga... Was wondering if let's say my broker goes bankrupt, what will happen to my stocks? Understand for US stocks on Tiger, it is held custodian by IBKR.

Discussion (1)

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Chris

01 Feb 2021

Owner and Writer at Tortoisemoney.com

Your broker should not be able to touch your assets as they should be held separately from the broker's assets. Hence, even in winding up, the broker would not be able to use your assets to clear off their debts and the creditors also do not have any rights to your assets. The only case this would not be so is in the event of blatant fraud (e.g. MF Global). Even so, the clients of MF Global eventually received their funds back (albeit after many years).

As for myself, I do stick to more established brokers for long term holdings and investing. I use IBKR personally.

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