IB: "...terminate our relationship with you..."

[_terminus_]

Having a similar issue, added another user (family member) in the same country (in EU), now in liquidation only mode for over 2 weeks. Calling every other day and they keep promising to fix the issue (promise to call back as well while never doing it).
This seems to be a way to get rid of successful short sellers, next thing will be keeping only the losing traders to prop up the MM business and achieve even higher profit margins. It's the only possible reasoning I can see right now.

Why I don't just leave IB?
I programmed my systems using the IB API in good faith, thought it was a safe bet. Obviously I was wrong.
The guys who praise IB for actions like this will find themselves in a similar situation at some point, then it won't be so awesome.

Just found this thread.

Were you able to solve the problem?

 

[eric41]

I also got a similar account closure letter.They simply stated as below

Following our review of your account, we regret to inform you that we have determined to terminate IBKR’s client relationship with you. This letter serves to inform you that Interactive Brokers will be closing your account on the last business day of September 2020.

No explanation as to why they are doing this.

I finally got a reply after asking them repeatedly.They stated that due to new regulatory and compliance requirements they cannot continue to support accounts in my jurisdiction.I am a non US citizen.

 

[Twinsen]

I heard that they mainly close accounts with balances less than $10k.

 

[victor74]

tonyf,
eric41,
anakreonts,
Archvile,

Let's compare how much commissions we paid in the last 3 and 12 months! Please write bare commissions only without market data fees, research and news fees, margin loan fees, borrow fees, etc. $10 monthly activity fees are counted as commissions.

My data:

3 months: $30
12 months: $120

Please write your data! I believe the August 12th mass closing of European accounts has a direct connection to this. If so, there is a way to reverse what happened, but we need the data.

Original letter:

Dear Client,

Following our review of your account, we regret to inform you that we have determined to terminate IBKR’s client relationship with you. This letter serves to inform you that Interactive Brokers will be closing your account xxxxxxxx on the last business day of September 2020.

A Closing Only restriction has been placed on your account, which means you may only place sell orders that reduce or close out an existing long position and/or buy orders that reduce and/or close out an existing short position. In addition, you are restricted from depositing any additional funds to your account.

To prepare for the closing of your account, we recommend you log in to Client Portal to execute the following tasks:
Unsubscribe from any Market Data subscriptions by navigating to the Settings > User Settings menu item, clicking the “Configure” icon for Market Data Subscriptions and unsubscribing from active subscriptions.
Ensure your banking transfer instructions are accurate by navigating to the Transfer & Pay > Saved Information menu item. If needed, create banking instructions for transferring your funds.
Arrange for the transfer of your assets to another firm by visiting the Transfer & Pay > Transfer Funds or Transfer Positions menu item.
If you would like to close account xxxxxxxx before the end of the month, you may do so by navigating to the Settings > Account Settings menu item and clicking the “Configure” icon for Close Account.

 

[tonyf]

They can do whatever they want, and you can as well.

I started a new thread to explore alternatives here: https://www.elitetrader.com/et/threads/0-option-trading-mega-thread-brokers-list.348774/

 

[eric41]

tonyf,
eric41,
anakreonts,
Archvile,

Let's compare how much commissions we paid in the last 3 and 12 months! Please write bare commissions only without market data fees, research and news fees, margin loan fees, borrow fees, etc. $10 monthly activity fees are counted as commissions.

My data:

3 months: $30
12 months: $120

Please write your data! I believe the August 12th mass closing of European accounts has a direct connection to this. If so, there is a way to reverse what happened, but we need the data.

Original letter:

Could this be a reason why they are closing non-US accounts ie fear of holding money laundered accounts from outside the US where they have no power to verify if customer deposits are from washed cash?Maybe they decided to become weary of foreign accounts after paying this fine this week


Interactive Brokers to Pay $38 Million Over Anti-Money Laundering Claims

https://www.wsj.com/articles/sec-in...-file-suspicious-activity-reports-11597081197

Anyway no need to speculate.Just move on to a new broker.Does anyone know of a non-US citizen who hasnt had his/her account closed?

 

[d08]

Just found this thread.

Were you able to solve the problem?

The account was closed and an LLC was formed instead. I believe after you're flagged for this, there's little you can do aside from long and expensive court battles.

 

[d08]

Just received an account closure letter from IB letter.... how did you sort it out? I am in the same boat as the one you were in (short seller, EU, etc....)

Mine wasn't related to short selling back then, it was the issue of accessing a family members account (with their permission).

 

[d08]

Also received an anti-money laundering request for information...source of funds and proof of identity. Seems like it's related to the court case but you never know. Seems like whatever happened, happened to EU accounts.

 

[tonyf]

Also received an anti-money laundering request for information...source of funds and proof of identity. Seems like it's related to the court case but you never know. Seems like whatever happened, happened to EU accounts.

Have you looked at tastyworks or Schwab International?