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  • REVIEW: Interactive Brokers Canada a Scam?

    Posted on June 10th, 2009 8 comments
    Interactive Brokers Canada

    Interactive Brokers Canada

    First off, don’t trust Interactive Brokers. My experience with them was the worst I’ve ever had with any company in my life. I was forced to liquidate my account, sell my positions, completely shut down, and they also managed to freeze my personal bank accounts for over 3 months. The question is why? Let me get into detail for you…

    Around late April 2008, Interactive Brokers kept sending me deposit notification emails saying to confirm a deposit to my account. After ignoring them for a few weeks (since it’s not my money) someone from IB called me. He told me that there is a deposit going into my account for $25,000. I told them that it’s not for me, but he insisted it was coming from me and intended for me. I made him repeat my name, the amount and where it was coming from. So I went online as he instructed and setup the deposit notification (heck I thought a family member was sending me a gift!). Monday came along and I thought it was dumb so I cancelled the deposit notification. Soon after, $25,000 finds its way into my account even after I cancelled the deposit notification. My first instinct was to hold the money in an interest bearing account at PC Financial.

    Roughly two weeks later, all my personal accounts freeze at PC Financial and IB tells me I must liquidate all my positions because my account was being closed down. For the record, I was holding short options on Lehman Brothers that expired on September 19, 2008… oh boy; I missed a boat load of cash because of this fiasco!

    So Interactive Brokers Canada puts the blame on the initial bank that sent the money. They claimed that TD Canada Trust made a mistake in sending the money to me. I told Interactive Brokers I have no problem returning the money and they’d get it immediately, but asked why my brokerage account was being closed. Although this scenario is not covered in their terms and conditions and I didn’t do anything wrong, they decided to permanently ban me from Interactive Brokers on the grounds that I took the money knowing it wasn’t mine. It’s funny because they insisted it was mine and even when I told them it’s not mine they still forced that money into my account. Go figure…

    At the end of the day, Interactive Brokers has a very complex trading platform only intended for high volume traders, but they rank at the very worst in my books for customer service. They may boast cheap trades, but their customer service can cost a lot more then any commission fee will be, and in my case that’s what happened. Poor discretion, poor service and just outright jerks are found at Interactive Brokers.

    So the story ends with me bring ostracized from my bank accounts and missing mortgage payments for over 3 months. Interactive Brokers received their money and shut me down. Oh, I forgot to mention, I lost my Lehman, Citibank and JP Morgan put options, which would have had me laughing to the bank!

    I hate Interactive Brokers Canada, they are an outright scam!!


     

    8 responses to “REVIEW: Interactive Brokers Canada a Scam?”

    1. Ok, when can we read a continue?

    2. [...] love when I have something positive to say about a brokerage. After having an nightmare with Interactive Brokers, any good experiences with brokerages will have to be met with a positive review. Originally when I [...]

    3. If you are still on active on this site, PLEASE email me. I have had a similar experience with IB and have had to hire an attorney to get my money back. I am a full-time trader and my livliehood has been taken from me with no reasons give by IB whatsoever, except that I never had the amount I say I had to begin with. I am still locked out of my account. I want to talk with anyone who has had a similar experience. Thank you.

    4. Hey Kevin, I’m still active here and you can post any questions you feel here in the comments. I wouldn’t trust Interactive Brokers with a 10 foot pole. Are you saying that you had X amount of dollars in your account and they are saying you had Y amount of dollars?

      I can tell you one thing, they are certainly good with screwing around with money, they insisted on putting $25000 in my account which was not mine. Go figure.

    5. Sorry just now noticed your response. Yes, that is exactly what I’m saying. I had approx. 83,000 in my personal trading account and after then 9 day lock-out, my account had been drained to 21.00. It will take a year to get it back (going to arbitration). I want to go to the media with my story but need others as well. It’s a nightmare!

    6. Hey, can you not post this, but instead email me? I would like to talk to you about your experience. Also, could you take my website address down from my previous post? Appreciate it.

      KRH

    7. hello guys. Sorry to hear about all these bad experience and thank you very much for sharing your experience with us.
      I want to do online trading, I was looking for any good online brokers. My first option was to go with the local banks but they are charging 28- 30$ per transaction.
      I am just a student and looking to invest around 3000$, I am a BBA student I studied Finance so I am looking to use what i learned. Please tell me which online firm would be the best to do business with
      Thank you in advance.

    8. Thank you for this information and I hope all goes well with your individual cases concerning IB.
      I was looking for an interactive broakerage firm and IB just go taken off my list.
      Good luck guys and thanks

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