IBKR - This Broker Defies the Industry Downturn Grows Client Cash Balances in Q1
2023-04-26 07:00:00 ET
The first quarter of this year has been challenging for many banks and brokers, with some, such as Charles Schwab , struggling to maintain deposits. One reason for this trend is a rise in interest rates , allowing customers to shift funds from low-yielding accounts to higher-yielding ones.
One platform bucking the trend and increasing its client cash balance in the first quarter was Interactive Brokers (NASDAQ: IBKR) . Unlike other brokers, Interactive Brokers has taken steps to ensure clients keep this cash with it. Here's what it did and why it could be a solid investment for your portfolio.
Last month, investors witnessed SVB Financial 's Silicon Valley Bank and Signature Bank collapse. Driving the failure was a decline in deposits at the two niche banks, most of which exceeded the Federal Deposit Insurance Corp.'s insurance limit .
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This Broker Defies the Industry Downturn, Grows Client Cash Balances in Q1