Hi, I opened an account with Interactive Brokers because of their low commissions. Thursday, I liquidated most of my stocks and requested a cash withdrawal. The system told me how much cash was available for withdrawal, and I requested that amount. Today, Sunday evening, I receive an email from Interactive Brokers saying that my withdrawal request "has been rejected for the following reason: Over the Max Can Withdraw Amount". Since I often need cash to bid at auctions, my ability to get cash quickly without hiccups is of paramount importance to me, and I can't tolerate that kind of nonsense. I am thinking now about stopping using them, and find another online broker with fees as low (or almost as low) as Interactive Brokers. Any suggestions will be appreciated. Thanks,
I would contact customer service for an explanation. Could it be a simple as waiting for T+3 settlement if a lot of the positions are equities?
Do you have IB secure device? If you do not have it you are restricted to 100000$ withdrawal per day. And withdrawals are also slower.
I have accounts with both IB and E-Trade, and for moving money around E-Trade is a better way to go, IMO. You can set up check writing on your trading account, or easily x-fer dollars to an E-Trade bank account, etc. IB is a good trading operation, but their folks are just not well trained at all in other areas of money management.
Are you concerned about the danger your account might be looted by hackers? IB places high priority on account security, especially including the goal of blocking hackers from stealing customer assets. It would appear that one of these various roadblocks, intended to foil hackers, has gotten in your way - perhaps because you neglected to follow IB procedures, or perhaps because those procedures were not adequately communicated to you (often a problem at IB), or perhaps because of a mistake or system failure that was IB's fault (often a probem at IB). I suspect that you will be able to solve your problems, regarding future timely access to your funds at IB, if you work with customer service to iron out the bugs or procedures affecting your needs, and if this doesn't work, then if you PM IBSalvatore with your problem. If you go elsewhere, perhaps things will be easier for you, because of less red tape, but guess what. They will also be easier for hackers trying to loot your account. I would rather put up with some red tape, instead of have my account needlessly risked by some mediocre brokerage firm that doesn't have its priorities straight, and gives its customers the ease of funds withdrawal they think they want, instead of the account security they really need. I would also submit that all in all, you won't be able to find an adequate substitute for IB's low commissions and other advantages, and that you are better off tolerating IB's shortcomings, so that you can enjoy IB's advantages. Let me also acknowledge that there are problems at IB, for which constructive criticism is warranted, and at which IB can improve. I think most customers are better off working with IB to help IB improve, instead of going elsewhere.
If you research E-trade using the search function on EliteTrader, you will read about problems of customers who had their E-trade accounts looted, and then E-trade refused to compensate them. I don't think you will find any similar stories about IB.
Security-wise, my biggest beef w/ETrade is how easy it is to get things reset when you lose access. With IB,it's that TWS is not yet on the STP widget for trading, a situation that will hopefully be corrected soon. Moving money-wise, perhaps the two legit knocks are customer service experience/bandwidth, and the lack of a pre-established expedited emergency process (e.g., many will accept a signature guaranteed letter of instruction FedExed for next day or even couriered for same day, Schwab will let you walk into branch office w/government ID, etc.). But as I first suggested contacting IB, I clearly agree that working with IB is the best solution. An aside: If anything, the Kevin Steele NFA complaint indicates that it's too easy to move funds in/out of IB with same day deposits/withdrawals by wire!
I thought so when I read them. You should find the stories and make your own assessment, if you really don't want to have your account looted by criminals.