IB closing inactive accounts.

Discussion in 'Interactive Brokers' started by serpent, Feb 16, 2008.

  1. sivashad

    sivashad

    Same problem with me. I was forced to close my IB account. In order to transfer the money from IB account to my HSBC account the IB Compliance Analyst Bill Klauseger requested to provide me with a bank statement or a government identification document (valid U.S. Driver License) and bank check. I am US Citizen and at that time the account balance was around $40K.

    Als see below...


    Dear ***vash,

    RE: IB Account UXXX635

    This email will serve as reminder that your IB account UXXX635 must close by 25 February, 2008:

    Based on information received by the IB Compliance Department, we have determined to terminate our relationship with you. Accordingly, you are advised to close the account referenced above by 25 FEBRUARY, 2008. You may transfer your accounts to another brokerage firm through the Automatic Customer Account Transfer System (ACATS), or you may liquidate any existing positions in your accounts and we will disburse any remaining funds to you. Consistent with the foregoing, your accounts have been placed in liquidation-only trading status, meaning that you may close out existing positions but you may not establish new positions.

    If you choose to transfer your account to another broker, you will need to contact this receiving broker and make the proper transfer arrangements.

    If you choose to close your account, please log into your account via LOGIN/Account Management Menu and follow the procedure below:

    Check Positions: Review your Trader Workstation within LOGIN/Trade or check daily account statements within the Statements feature under Report Management to verify that all positions have been liquidated or transferred to an alternative broker via the ACATS system.

    Convert: Any foreign currency you may hold must be converted to your accounts base currency. This conversion can be processed using the IDEAL/Forex system from the Trader Workstation. If you need assistance with the conversion process please contact our Trade Department at 1-877-442-2757.

    Verify Mailing Address: For USD based accounts, IB will issue a check within 3 to 10 days of the closure request to the mailing address shown on our records. Please check your information to confirm that IB has your correct mailing address within the Info Change feature located under Account Administration.

    Verify Bank Wire Instructions: For all non USD based accounts IB will issue you a wire within 3 business days to the Banking Standing Instructions on file. Should you wish to create or change banking standing instructions, go to the Withdrawals feature located under Funds Management. Under Wire Transfer choose Create Instructions to create banking standing instructions or Edit Instructions to modify existing banking standing instructions.


    Close Account: Select the Close Account feature under Account Administration and complete the form for processing.

    Please note that if the above criteria are not met, our system will not be able to process your closure request.

    Sincerely,
    Interactive Brokers Compliance Department
     
    #11     Feb 16, 2008
  2. Bob111

    Bob111

    sivashad-what is the exact reason?
    not active? or there is something else? perhaps too active?
     
    #12     Feb 16, 2008
  3. But do you live in the US? I think it's been mentioned here before that you must live in the US - or a US military base - to trade a US account.
     
    #13     Feb 16, 2008
  4. Bob111

    Bob111

    i think i know exactly, why your accounts are being closed. from time to time IB requests to update or verify your personal information and email. they did have such thing in 2007. if you did not update your account(you have to login,and there is first thing you see is this application) and they unable reach you via email(cna be spam filter or whatever)-that cause your accounts to close.
    imo-no big deal.close and open new one.
     
    #14     Feb 16, 2008
  5. sivashad

    sivashad

    IB did not provide any explanations. As per Interactive Brokers Compliance Department they have the rights for this action. I am not an active trader. On average less than 10 trades per month.
     
    #15     Feb 16, 2008
  6. Bob111

    Bob111

    when last time you login into your account management? did you receive your monthly\daily emails regularly?
    most likely it's related to account information verification
     
    #16     Feb 16, 2008
  7. sivashad

    sivashad

    What are you talking about??? I am living in NY city… and login into my account on a daily bases… every day checking my e-mail and responding to all e-mails from IB. I have no idea why my account forced to be closed.
     
    #17     Feb 16, 2008
  8. If you want your funds back, simply send IB the documents:
    Bank statement or government identification
    And a bank check

    If everything is legitimate on your end, why would you be having a problem with sending to IB the requested identification as per your conversation with Bill Klauseger?

    Did you open your IB account before numerous forms of identification were required - you know, before the Patriot Act, before 9/11?

    Your last trade was September....9/xx
    IB closed your account in January
    It is now that you want to withdraw funds
    Doesn't sound like English is your first language
    You might be a foreigner
    You mentioned Patriot Act
    Your Elite Trader handle is serpent
    Maybe the government requested that IB freeze your account! Not that I'm paranoid or anything.
     
    #18     Feb 16, 2008
  9. brokers may conduct enquiries on clients; anything related to biz involvements, past/present; financial history, assets/net worth...anything that may be reassuring to them if cause for concern already exists. also any your activities through ib may create a conflict of interest situation with ib itself.

so, if something of your persona suggests you are no longer any fit to be eligible for a tws acct....[...]


--i have an alive'n'kickin' ib acct inactive zince autumn 07.
&#10--; best of luck sorting thiz booboocrap.
     
    #19     Feb 16, 2008
  10. sivashad

    sivashad

    I am posting this specially for FightTheFuture

    I was born outside of US in Europe and English is my third language. Also, I went through the US naturalization process more than 10 years ago. Please, provide better explanations if you strongly believe that IB should provide service only for the US native speakers!!! In my case, the IB account was opened in 2004 and in order to open an account I provided all the documents requested by IB. I have no idea why I should provide my driver license to transfer the money from my IB account to my HSBC account located in USA. As far as I know, the Patriot Act has nothing to do with this type of money transfer. At this moment I have no other option other than to provide my private information to IB. However, I feel that IB is acting as a “BIG BROTHER” or facing some difficulties and compromising my privacy and my rights as the US citizen.

    P.S I hope you are not employed by IB and please do not act as an advocate for the IB.
     
    #20     Feb 16, 2008