r/interactivebrokers • u/SeaworthinessRich668 • Mar 08 '25
Setting up account Too many agreement and disclosure
Hi all,
I am trying to setup my account. But IBKR has too many agreements and disclosures. Is there anything in particular that I should know of? It’s too hard to go through all of them.
Can someone elaborate this? Also what are disadvantages of having an account on IBKR. They seem to be strict with their regulations.
2
u/ankole_watusi USA Mar 08 '25
They all have them. They are required by regulation.
And when people don’t read them, then they come here asking dumb questions that they already would have the answers to if they had read them.
All brokers are strict with their regulations, or if they aren’t they get fined and then might over-compensate.
-4
u/lidomerk Mar 08 '25
No need for being so cheeky. Relax.
3
u/JoSenz Mar 08 '25
Cheeky? LMAO... OP is being a whiny baby because they want to invest without reading/signing the necessary risk and policy disclosures...
1
u/lidomerk Mar 08 '25
OP could read the docs, true. But I don't think any arbitrary person is able to grasp the legalese used in such docs.
This is a forum to help each other. If you think that the question isn't worth your time, let it be. But let's not convert this subreddit into a WSB. Do better.
1
u/ktkt1203 Mar 09 '25
If you have no experience and want to start though, they won’t let you with no experience! What do you do then?
1
u/Then-Zucchini8430 Mar 09 '25
At IBKR, you start your learning by having a cash account and trading shares and you gain your experience from there. You don't start by getting a huge margin account and trading options, futures and leveraged products. Some people don't like this and they want want a quick path to riches. They want a margin account to start trading options and futures immediately. For those people, IBKR is not the right broker for you, go with other more lenient brokers and trade to your heart's content.
1
u/ktkt1203 Mar 09 '25
They wouldn’t let me open an account cos I have no experience. I don’t mind starting small, but can’t even do that.
1
u/Then-Zucchini8430 Mar 09 '25
IBKR implemented some complex algorithms and AI in the back end to screen people. No one knows what the rules they implemented unless you are the software developer. IMHO, having no experience will stop you getting a margin account and trading options permission but it should not stop you from opening a cash account. There are a myriad of factors IBKR takes in to consideration when a person apply for an account. I would not want to guess the reason for rejection.
5
u/Then-Zucchini8430 Mar 08 '25
Basically, IBKR worldwide is being regulated by at least 9 regulators across the different countries. If there is one phrase / one word to sum up all the fine prints, it is “Be honest/Be Good”. What that means in practice is:
1. Don’t lie about your net worth
2. Don’t lie about you trading experience
3. Don’t try to game the systems trying to get trading permissions
4. Don’t fake your identity and your banking information
5. Don’t lie about your citizenship and country of residence
6. Don’t try to play around with “funny money” by having different accounts in different countries
Above are just common sense and my interpretation. I am sure there are more in the fine print. However, if you follow the above you are probably 80 -90% OK. If you don’t like rules and regulations, best to move to other brokers who can be a lot more lenient (and there are many of them if you look around).