Interest on 10K: IB doesn't charge for incoming/outgoing wires and other misc fees other brokers tack on. Debit margin is probably the lowest in the business with a rate as low at 50bps over libor (currently about 1.8%). credit interest is also amongst the most generous in the business for amounts over 10K. how come no one complains about that I guess there's a tradeoff.
Although I am probably one of the smallest traders, I look at it this way: I would rather have no credit interest for amounts under $10,000 than having to pay the .0003 SEC fee on stock sales.
IB's policy is to hold funds from personal checks for 10 business days. Like most firms, IB does not receive a daily list of cleared checks from its bank and does not know when funds from personal checks have cleared. It can take 10 or more days for a check to be rejected by the customer's bank and returned to IB's bank at which time IB's bank account is debited. Checks are rejected for various reasons such as insufficient funds, account closures and stop payments usually because of customers' mistakes but sometimes because of customers' fraudulent intents. IB experienced losses in the past from rejected checks and therefore implemented the 10 business day hold on personal checks. IB wants its customers to trade as soon as possible and encourage them to send funds by bank check or by wire transfer for immediate funds availability.
Interest on 10K: IB doesn't charge for incoming/outgoing wires and other misc fees other brokers tack on. Debit margin is probably the lowest in the business with a rate as low at 50bps over libor (currently about 1.8%). credit interest is also amongst the most generous in the business for amounts over 10K. how come no one complains about that I guess there's a tradeoff.
You gotta wonder why some of these guys are tripping over nickles and dimes on their way to making a "fortune" in the markets don't you?
Many of the "issues" people have with IB are their really due to their own stupidity. Take checks for instance: why would anyone send a check to begin with? I always wire money. But as a business man I can tell you I regularly get checks bacl 2 weeks later that have "bounced" for one reason or another. IB's check policy is a sound business policy. If you want to trade right away, just wire the money.
I always hear these customer service problems. Frankly, I have rarely called customer service, so if they were "pleasant" or "rude" would really not make that much difference based on the number of times I've called in the last few years. However, I would not call any of my experiences "rude"...maybe perhaps some of that east coast attitude at times. The last time I called the call was downright pleasant and helpful. But I still wonder why this is a focal point....I've called maybe a handful of times in several years.
Anyone with a little perspective should be downright thrilled over the platform and the commissions and other costs. I think IB is a first class operation. And they continue to improve month by month. My kudos.
I guess there's a tradeoff.