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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!!