IB Friends and Family

Discussion in 'Retail Brokers' started by bronks, Apr 22, 2009.

  1. I used to have an IB account years ago, so I know the whole customer service rap on them. However, I emailed them twice with a coupla basic questions. The first response led to dead link, the second, was completely ignored... who'ed a thunkit?

    Anyway, here's the questions:

    "Hello, I'm considering opening a friends and family account and will be the trader of the account.
    I've read the account management users guide, but am unclear in a few areas:

    1. I assume that even though I can allocate trades and such for the other parties, I'M NOT ALLOWED TO TOUCH THEIR MONEY,
    I'm only able to collect fees. Is this correct? In other words, I can't arbitrarily close the account, and run off with everyone's money, correct?

    2. Am I allowed to "lock up" the initial deposits for any length of time, say 1 year, before they can withdraw it OR at least be able to impose some kind of early withdrawal penalty?"

    So if anyone can answer these for me, it would be appreciated.
    Also maybe this could be a discussion repository for anyone with F&F accounts.
  2. moarla


    there is under "accounts" the menu "Users & Access Rights "

    there you will find any infos about
  3. I've downloaded the AccountManag. PDF and have gone through it several times. There seems to be a lot more information available, through the account links, IF you have an account. So my questions remain unanswered.
  4. JackR


    As to question 1 - Your statement is correct. Go here:

    Click on the funds tab.

    As to question 2 - As I recall you can only delay it for 3 to 5 days. You cannot stop it altogether. Any client withdrawal request is routed to the advisor. If the advisor does not respond within X days IB will release the funds.

    As a practical matter withdrawal of all of a client's funds will have no effect on anything except in generating the $30 minimum in commissions to avoid the $10 data fee. All trade allocations are determined prior to purchase or sale.

  5. Ok, thanks Jack. I think I found the "wording" I was searching for.



    "Advisor Accounts: Advisor clients may complete a Withdrawal Instruction electronically if they have a username and password. If they don't, the Advisor can also make a withdrawal request for the client. Please note that checks will only be made payable to the client, and electronic transfers will only be made to an account in the client's name. "

    I think that about sums it up.