Banking issues for traders

J

John9999

I just got notice that my current US bank (I live is USA) with Citi has made a "business" decision to close my account. They do not like the activity I have of wiring $$ out to my brokerage accounts and back. The same exact thing happened to me at Chase about 5 years ago.

does anyone have recommendations how to avoid this? maybe I should go with a local Credit Union or regional bank. I only need a basic checking with debit card and online services.
 
Robert Morse said:
The constant money flow is an AML issue, How often do you move funds and why? Who is your broker? Some have a FDIC sweep. We do not.
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Robert... I have accounts with IB and Transact... maybe I avert this by sending checks vs wires... I am going to look at a regional bank and have the discussion up front before I open the account
 
John9999 said:
Robert... I have accounts

I am going to look at a regional bank and have the discussion up front before I open the account
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Whatever you do...don't sound suspicious;
trader_trader.jpg
, o_O

Are you Asian...Asians like 9999, and repetitive and sequential numbers. -- They're a superstitious and lucky-minded bunch.
Chinese New Year 2018 starts Feb. 16...Year of the Dog this year...that's My sign.
 
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John9999 said:
Robert... I have accounts with IB and Transact... maybe I avert this by sending checks vs wires... I am going to look at a regional bank and have the discussion up front before I open the account
More...
ask yourself is it necessary to do all this wiring back and forth. then come up with a plan to reduce all these movements. it sound like you are wasting a lot of time.
your time should be focused on your trading.
 
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For years I have used local banks and credit unions. I think the last time I used a money center bank was in 2004. Today, I use credit unions(plural), for both my personal banking and trading business, without issue.

Generally speaking, on occassion, trading account opening in particular I wire funds out. From time to time I receive wires in, but not frequently. I do receive ACH deposits regularly and often, sometimes multi times a week from my primary trading account. This is a feature/function of the primary broker I use. I don't want this to be a a promo for AMP Futures, but ACH is something they offer. You might want to review your entire trading infrastructure, not just your side of the banking component.
 
IB's introduction of a debit card will reduce the problem. IB know the funds origin is trading income.

The underlying problem is ever growing excessive regulation. FATCA, for instance, is estimated to incur administrative costs which are literally a thousand times higher than the extra tax revenue collected.
 
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