When were these added? I thought you had to wire to an account in your name. Any luck wiring to Kraken, Gemini, Coinbase or Bitstamp?
I saw it now. Quite strange and a bad idea, I'm not sure what magic their compliance department does to make this safe. Spooky.
I am not sure, but I believe that this is all related to their debit/credit card offering, and requires that you take (what I'll term "taxable possession") of the funds, and from there, IB is doing nothing more than your bank would, and would/could send it anywhere you wished. In that way, they satisfy the taxing authorities (IRS/StateRev.Authorities in the U.S.), and can dip a toe into "cardholder services" for which they already have had the organizational infrastructure in place for many years. As long as there is a break between trading funds and (what I'll term) "funds designated for outgoing [card] transit", it doesn't phase me. But I *don't* know details -- only what I'd expect/need to see. It came out last summer, and I wasn't really tempted. But I'm getting increasing grief from my local bank, and, well, ....... It would simplify my life. Hmmmm.
Why do you consider it unsafe? I have set up a corporation and need to transfer the funds from my personal account to the corporate account, which is a third party transaction.
I guess the underlying notion is that your bank knows you better than your broker. But do large banks like Citybank or HSBC really know their customers better than brokers? It must be painful for banks to carry the costs of all the "know your customer" and "anti-money-laundering" regulation just to see online brokers like IB cashing in all the commissions.
What stops these hackers from attacking the banks and wiring funds from there. Don't tell me the cybersecurity at IB and others is any less than the standard banks.
i tried to send funds to a crypto broker and had the wire rejected. i also tried to send funds from a corp IB account to a personal bank account but they prohibit that