I just received notice from IB that my account will not be tradeable for 17 days, yet they say on their website that they only hold checks for 10 days. I wonder why it takes them a whole extra week for the funds to be tradeable. They advised that next time I transfer funds by wire. I guess they must of just changed their policy...
Well, I am really sorry for you. But really they encourage to send wires and here you would have heard other sad checks stories... NEVER, EVER, send a check to IB. WIRE ! With wires you are able to trade within a few days. To be fair, they deliver checks to traders very very fast. In my personal case it is easier to receive a check than a wire. Never had a problem and speedy too. Maybe you want to check with their online chat if you can't trade already (did you try to login ? - if your money is there your buying power is updated. otherwise it remains 0.00 that's it) tntneo
Don't feel too bad for me. I only sent them a small check to see if I like them in the first place. I always keep the bulk of my trading capital with my current broker before I move it to a new one. But at least I now know I will have to wire it instead of sending a check. I have never had a check held for more than 10 days. IB is really slow. Maybe they just don't like paper work. Who does?
I have sent IB cashiers checks on two occasions, and it worked great. In fact, it didn't take much longer than wiring the money. It looks like personal checks are a different story though.
IB holds checks for 10 business days, which translates to over two weeks, so 17 days sounds reasonable.
I made the mistake of sending a check once. Never again! The good news is that they are very prompt at posting wires to your account. Live and learn. 99
Htrader You are right! Ten business days. And that is exactly what Nov 2 to Nov 19 is, ten busines days. Ten lashes with a wet noodle for me... You would think I could read a little better. Too much staring at this darn computer I guess.
version77, if i can explain the reason.... about 1-2 years ago there was a well publicized case of someone opening up an account with IB and another DA firm (i think terra nova but not sure). He sent large checks to both firms and started to trade. He traded with himself between the accounts a number of times creating profits in one account and losses in the other. IB compliance noticed the pattern and informed the SEC. The guy was later arrested and prosecuted. The full story from the NY Post can be found here: http://www.interactivebrokers.com/html/companyInfo/art_archive.html (NJ fraudster...). you may also be surprised (i was when I found out) that a bank can still "bounce" a check even after they release the funds for something like 30 days (again i don't have the exact figure). i guess 10 biz days was a safe figure to encourage a: wiring of funds or bank checks and b: a point in time when checks rarely get recalled from a bank. as for wiring, i don't think it is a cost issue as much as an efficiency issue - the whole process can be automated making it safer and quicker for both sides.
This really doesn't make a lot of sense. The guy was creating break even trades, yet generating 4 commissions per trade (one buy and one sell in each account), probably in excess of $50 per trade. Am I missing some advantage in trading with yourself? Is there actually a law that states you can't trade with yourself? Seems kind of harmless to me. OK, the part I'm writing here is an edit after I've read the next few posts. The guy obviously funded IB with a bad check. I should have figured that out from the context of the thread.
def I couldn't get the link to work. But I get the idea. Actually I could get to the NY Post, but couldn't access the article through their archives. I never have any luck with searches. Heres the trick: Open a second account up with a bad check. Trade from your first account and always take the profit. Let the losses be in your second account that was financed with the bad check. When account #1 gets a lot of profit, run! Let brokerage #2 hold the bag with the losses... I am surprised that brokerages don't hold checks longer than 10 business days. P.S. I hope I haven't given anyone any ideas.