Mugged by Interactive Brokers!!!

[SideShowBob]

Sorry for the overly dramatic title, but I just found out the hard way about the scam also known as the IB check deposit policy. They keep your funds for 7 business days and therefore they keep the interest on those funds as well.

The reason they provide is to prevent fraud if the transaction is rejected, but what a normal bank/broker does is credit your account over several days and then put a hold on the funds so they cannot be used for trading and cannot be withdrawn until it's clear the check is "good".

I can certainly understand they don't want to be stiffed for the funds from a bad check (nor would I!) but to keep it that long while keeping your interest on the funds should be criminal. Especially in the case where it's a check from another bank (but not a cashier's check) and is not a personal check.

SideShow "Bitchin" Bob

 

[50_Bip]

Pony up $20 bucks and do a wire next time.

 

[SideShowBob]

I wish -- it was a rollover where the original custodian sent a check.

 

[Tums]

LOL

 

[SideShowBob]

I guess it could have been worse, they could have sent rolls of pennies.

 

[OldTrader]

Can't believe it's been this long since the last time you bitched about IB. LOL. I thought you were sick or something....

By the way, at today's interest rates this couldn't have been too much....

OldTrader

 

[SideShowBob]

Quote from OldTrader:

Can't believe it's been this long since the last time you bitched about IB. LOL. I thought you were sick or something....

By the way, at today's interest rates this couldn't have been too much....

OldTrader

Maybe in your account :eek:

I've taken both sides of the argument (depending on the argument). Always taking one side of an argument (per your comments) without regard to the argument itself smacks of the American political debate

Anyway, see my next post for more IB bitching. That said I will say their new version of TWS has been pretty stable (at least from the API point of view). And their new contract addition listing the name of the contract is awesome.

SSB

 

[kickboxers]

trust me, there are lots of fraud in wall street.

IB know the street full of thieves in wall street.

Quote from SideShowBob:

Sorry for the overly dramatic title, but I just found out the hard way about the scam also known as the IB check deposit policy. They keep your funds for 7 business days and therefore they keep the interest on those funds as well.

The reason they provide is to prevent fraud if the transaction is rejected, but what a normal bank/broker does is credit your account over several days and then put a hold on the funds so they cannot be used for trading and cannot be withdrawn until it's clear the check is "good".

I can certainly understand they don't want to be stiffed for the funds from a bad check (nor would I!) but to keep it that long while keeping your interest on the funds should be criminal. Especially in the case where it's a check from another bank (but not a cashier's check) and is not a personal check.

SideShow "Bitchin" Bob

 

[kickboxers]

they are protecting themselves from bad checks.

Quote from SideShowBob:

Sorry for the overly dramatic title, but I just found out the hard way about the scam also known as the IB check deposit policy. They keep your funds for 7 business days and therefore they keep the interest on those funds as well.

The reason they provide is to prevent fraud if the transaction is rejected, but what a normal bank/broker does is credit your account over several days and then put a hold on the funds so they cannot be used for trading and cannot be withdrawn until it's clear the check is "good".

I can certainly understand they don't want to be stiffed for the funds from a bad check (nor would I!) but to keep it that long while keeping your interest on the funds should be criminal. Especially in the case where it's a check from another bank (but not a cashier's check) and is not a personal check.

SideShow "Bitchin" Bob

 

[reiehaxm]

No deposits here. A good trader will only have withdrawals.