You couldn’t sound more clueless here. A rare screwup by IB for sure but the only reason you’re hearing about it is because the CEO is a standup guy. (Very sharp one too.) Other brokers would no doubt sweep this under the rug and/or pursue their customers for the losses.
On a serious matter, doesn't Peterffy owns a huge chunk of IB and a brokerage is as riskless of a transaction business as you can get to in the financial industry as possible.
IB's frontends used to lead the market and their pricing is decent too. Who else lost $100 million because they did not program futures and span margin properly?
Not an employee but a customer for about 16 years. Not sure their front end ever led the market and they’re far from flawless. But they’re one of a very small number of ethical outfits in a very scummy industry.
