I just found this last night (11/19/2019): https://www.interactivebrokers.com/en/index.php?f=4945&p=tradingrequirements It was surprising to me that cash account annual income requirement is the same as margin accounts. it is a sliding scale based upon age. It is surprising as the broker incurs no risk in a cash account (for long options anyway). They are being conservative for people closer to retirement age, which is probably good. Meanwhile there is no income requirement to buy lottery tickets or gamble at casinos. Indian Casinos are under Federal jurisdiction. Vegas and Atlantic City are under the Interstate Commerce Clause.
They have to follow regulations. They are not supposed to market products to uninformed, underfunded, and/or inexperienced customers. Look these up for more info. (FINRA) Rule 2090 (Know Your Customer) and FINRA Rule 2111 (Suitability)
That's right. They are just covering their asses, not being elitist. And I dont recall being asked for any supporting documents proving income or trading history when I opened an account with IB. Exactly what income level is required, I don't know. I don't think it should matter, but the market nannies do, apparently. Anyway if you are truthful and you do not meet the requirements, you don't get an account. If you are NOT truthful and IB, who actually probably does not particularly care, finds out that you fudged your income and trading experience a bit, then you don't get an account. If they do not investigate you, then you get an account. Not saying you should lie, only saying that it would probably not have any consequence except possibly give you trading privileges that will ruin you. And IB will have met their regulatory obligations by simply asking you for your personal data.