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Interactive Brokers New Contract with Traders


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#1 dwnowhere1

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Posted 12 June 2021 - 10:28 PM

Anyone taken the time to read through the contract.

While typical legalize (everything in favor of IB, none in favor of customer), there are a number of changes that jumped out at me which raise concerns.  Three of many are:

 

 

1)  Need for an alternative system.

     While this has been true for some time (IB phone response has always SUCKED -- takes forever to reach a real person)

     nothing is mentioned on how one is supposed to offset trades if trading through someone else.   For example,

     say you are buying 1, the system goes down, and you use an alternate system to sell 1.   So IB show you long, the other

     system shows you short, and you think your flat.   What do you do?

2)  Ability to terminate you at anytime at their whim.

     The same rational as #1 can be applied here.   You are buying 1, they terminate you.   How are you supposed to close out your position.

3)  Ability to tap your account at anytime.   I just went through this with MF Global and Corsine, which took about three years to get our money back.

      In that case what MFGlobal did was illegal.   In this case you are agreeing to allow them use your account.   No mention about whether or

      not you will get reimbursed if they borrow and can't afford to reimburse the account(s).

 

Anyone using other than IB, that does not have these onerous changes?


Edited by dwnowhere1, 12 June 2021 - 10:32 PM.


#2 tsharp

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Posted 13 June 2021 - 10:23 AM

Anyone taken the time to read through the contract.

While typical legalize (everything in favor of IB, none in favor of customer), there are a number of changes that jumped out at me which raise concerns.  Three of many are:

 

 

1)  Need for an alternative system.

     While this has been true for some time (IB phone response has always SUCKED -- takes forever to reach a real person)

     nothing is mentioned on how one is supposed to offset trades if trading through someone else.   For example,

     say you are buying 1, the system goes down, and you use an alternate system to sell 1.   So IB show you long, the other

     system shows you short, and you think your flat.   What do you do?

2)  Ability to terminate you at anytime at their whim.

     The same rational as #1 can be applied here.   You are buying 1, they terminate you.   How are you supposed to close out your position.

3)  Ability to tap your account at anytime.   I just went through this with MF Global and Corsine, which took about three years to get our money back.

      In that case what MFGlobal did was illegal.   In this case you are agreeing to allow them use your account.   No mention about whether or

      not you will get reimbursed if they borrow and can't afford to reimburse the account(s).

 

Anyone using other than IB, that does not have these onerous changes?

 

 

They all seem to need to reach for the proverbial brass ring... I was with Lind-Waldock when they took on too much margin and I ended up only recouping about .60 on the dollar over about ten years.  Creditors, higher up on the food chain got the rest... if it stinks, perhaps it's time to move on.



#3 redfoliage2

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Posted 13 June 2021 - 11:40 AM

I doubt its legal for them to do these on an IRA account........,,

#4 dwnowhere1

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Posted 13 June 2021 - 03:21 PM

Sadly, most people don't read the contract(s) they sign and then cry in their soup or jump through a lot of hoops trying to resolve the issue.

I'm hoping this post will get enough attention and enough people to contact IB, that some of this can be undone.

Unless enough complain, then everybody is stuck or looking for another vendor -- if one can find one -- that is not ALL business and No Customer.



#5 MikeyG

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Posted 15 June 2021 - 07:17 PM

I use IB and I dont see anything in the new agreement that jumps off the page. I agree there hold times are terrible though.

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