IB third party wire transfers
- Thread starter just21
- Start date
Thankfully so. Allowing 3rd party recipients would launch an unprecedented attack on brokers.
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.
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.
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.
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.