Interactive Brokers

Review: Un-authorized Trades Dec 12, 2014, after stock market already closed, all of a sudden, many un-authorized trades just showed up in my account with Interactive Brokers. Contacted the company to resolve this, nothing happened. The trades were still in my account. As a result, I suffered big losses.Desired Settlement: Either reverse the un-authorized trades, or, if that is NOT possible [because the options expired yesterday already], then monetary compensation

Business

Response:

Interactive Brokers LLC ("IB") submits this response to the complaint filed with the Revdex.com, in which you state that unauthorized trades were executed in your account in the after-market hours on December 12, 2014.According to IB's records, you have been an IB customer since January 2010. IB notes that your account has been subject to liquidation trades in the past and; therefore, you are familiar with IB's Margin policies and procedures including, but not limited to, liquidation trades due to Expiration Exposure as conducted by IB at 16:00:00 ET and 16:05:30 ET on December 12, 2014. In this instance, IB processed liquidation trades in the account due to Expiration Exposure which ranged from -80 USD up to -20,753 USD during that period.IB notes that, if you want to avoid liquidation trades in the future, you may reduce risk in the account by adding funds and/or by managing the positions within the account. IB Account holders can monitor margin levels and expiration-related margin exposure via the Account window located within the[redacted]. The projected margin excess will be displayed on the line titled Post-Expiry Margin which, if negative and highlighted in red indicates that the account may be subject to liquidations.For additional information related to IB's Expiration-Related Liquidations policy, please refer to the IB Website, at [redacted].IB's actions with respect to your account activity were in accordance with IB's standard policies and procedures as set forth in the IB Customer Agreement and on IB's website. IB strives to provide excellent customer service at the lowest possible trading costs, with the best trading technology available. We trust that this explanation has been helpful in clarifying the issue regarding the executions which occurred in your account.Thank you and, as always, IB appreciates your business.Regards, [redacted]

Consumer

Response:

Review:[redacted]

I am rejecting this response because: IB did not even attempt to resolve this matter. They used "liquidation" as an excuse for the un-authorized trades, while on the day of the un-authorized trades, even according to IB's own account information, I did not have any margin violation. The excess margin was about $10,000, as I remember. [available margin] I checked the available margin just before the market close and right after the many un-authorized trades appeared in my account. [this was only about 10 minutes after market close] Further, the execution prices, as reported by IB, were ridiculous. IB did not address that at all in their so-called response. This practice of sticking un-authorized trades into customer's account from time to time, has devastated my account with IB. [My account with IB was over $1,000,000, now it's ruined by these un-authorized trades from time to time] This un-lawful practice has to be made known to the general public, and put into a stop. Otherwise many others would be hurt.

Sincerely,

Business

Response:

Review: I had an inactive IRA account with Interactive Brokers for the past several years. The account was inactive and not in use for years. Unbeknownst to me Interactive brokers was still taking out their monthly fees every month year after year. Never once did I know this was happening. ITS very unethical and border line illegal to take peoples money like that and never disclose or send me a statement showing me you were taking money out of my account. They did that for 5-7 years until I had nothing left in my account.

Very unethical practice. You never once emailed me any monthly statements about my IRA account but yet you kept taking out your fees. I never used the account for 5-7 years.Desired Settlement: I would like them to reimburse me for all those fees they took out over a course of 5-7 years.

Business

Response:

Dear Mr. [redacted]

Interactive Brokers LLC (“IB”) is responding to

your November 21, 2014 correspondence to the Revdex.com in which

you stated that your account was inactive and that you were not aware that the

firm charged any fees during the 5 to 7 years that you did not use the account.

IB caters to active professional traders and investors

and in order to provide low commission costs and high quality executions, IB requires

that each account generate a monthly minimum commission. The customer agreement

that you signed when you opened the account contains clear disclosures

including:

13. Customer acknowledges and

agrees that IB deducts commissions and various other fees (including but not

limited to market data fees) from Customer accounts and that such deductions

may affect the amount of equity in Customer’s account…

IB also discloses on its website

As IB caters to active professional traders and

investors, we require that each account generate a minimum of commissions per

month. Accounts generating commissions less than the minimum as stated below in

any given month will be assessed the difference as a monthly activity fee (Activity

Fee = Minimum Required Monthly Commission – Actual Monthly Commission).

Please note that the monthly activity fee is based on commissions only, and

does not include fees related to third-party assessments such as market data

subscriptions or order modification/cancellation fees.

In addition to monthly fee minimums, we pass

through market data fees from the exchanges for any real-time market

data service in which a customer subscribes. Customers choosing to subscribe to

US non-professional real-time market data will have the USD 10 (or non-USD

equivalent) monthly market data subscription fee waived if they spend USD 30

(or USD equivalent) or more in commission for the month.

IB records indicate that you subscribed to the [redacted] and the [redacted] on February

11, 2007. Although you may not have used

this data, you subscribed to the market data referenced above, IB paid for the

data, and the applicable fees were assessed to your account.

You opened your account as an IRA and IRS Regulations

require IRA accounts to have a trustee. IB’s

trustee charges $7.50 per quarter for administrative services; IB paid the IRA

trustee and assessed your account in accordance with your IRA agreement.

Full details regarding fees are posted on the IB

website at [redacted].

Please note that all charges assessed to your

account are reflected on your Activity Statements which you agreed to receive

electronically and which are available online thru Account Management.

IB is committed to providing all of our customers

with the highest level of service; the lowest possible trading costs, and the

best trading technology available. Based

on the information provided above, IB's actions with respect to your account

activity were in accordance with IB's standard policies and procedures as set

forth in the IB Customer Agreement and on the IB website.

Regards,

Interactive Brokers

Consumer

Response:

Review: [redacted]

I am rejecting this response because: Even though you say it is you policy to collect such fees regardless if I was using the account or not you still should of sent me a monthly statement evry month so I would of know the excessive fees you charged me for not even using the account. theres no reason you cant email me statements to show me you taking out fees every month. If I make a trade you email me the trades I make it should be no different when you take out your fees there is activity in my account and I need to disclose the activity in my account. I feel you unethically took money from my IRA you should of did a better job disclosing and emailing me the activity report and now your trying to cover it up and say thats our policy to take money out of dormit accounts thats how we like to steal peoples money.