InteractiveBrokers + Seychelles IBC -> account closure

[Jelda]

Hi everyone,

I have Seychelles IBC and account at InteractiveBrokers and today I've received notice from IB stating they will close my account in few weeks.

From my point of view I haven't done any suspicious activity - clear company structure (I am sole owner), few stocks/bonds trades per month, deposits/withdrawals to only one bank account which was used for initial funding. I tried to contact customer service but they were not able or willing to provide much information - they said it's because regulator wants them to close business with customers from high risk countries.

So I want to ask:
- did you have similar experience with InteractiveBrokers?
- is there some new regulation/law that push brokers to limit exposure to "high risk countries", or do you think it's only IB activity and other brokers can still accept Seychelles IBC?
- if you were in same situation, what would be your plan B?

Thank you

 

[CaptK]

High risk countries? Seychelles or your home country?

 

[Jelda]

They mentioned only country of company - Seychelles. I am EU citizen.

 

[CaptK]

Get a UK LLP or a US LLC (double check your IB account is not from the US if using llc).

Et voila

 

[Martin Everson]

Jelda said:
- did you have similar experience with InteractiveBrokers?
Click to expand...

I closed my IB friends and family account before this happened.

Jelda said:
- is there some new regulation/law that push brokers to limit exposure to "high risk countries"
Click to expand...

Commonsense law bor&%#

Jelda said:
or do you think it's only IB activity and other brokers can still accept Seychelles IBC?
Click to expand...

Some may still in the short term but net is closing.

Jelda said:
- if you were in same situation, what would be your plan B?
Click to expand...

Find another broker or liquidate asset sand setup a company in a jurisdiction without negative connotations.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Mr Magoo]

did you have an account with IB UK or IB US?

 

[Outlander]

I finally opened an account at InvestorsEurope today. KYC was a PITA. I can't vouch for them, as I haven't used it in practice, but they do accepts IBCs.

 

[Martin Everson]

Outlander said:
I finally opened an account at InvestorsEurope today. KYC was a PITA. I can't vouch for them, as I haven't used it in practice, but they do accepts IBCs.
Click to expand...

This is the Mauritius company thats a Saxobank white label last time I checked or has it changed now?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Outlander]

Martin Everson said:
This is the Mauritius company thats a Saxobank white label last time I checked or has it changed now?
Click to expand...

It's definitely a Mauritius company. I don't know its relationship with Saxobank. By the way, I also tried Saxobank, submitted an application and was solemnly ignored.

IE took a while but at least they are responsive.

 

[Martin Everson]

Outlander said:
It's definitely a Mauritius company. I don't know its relationship with Saxobank. By the way, I also tried Saxobank, submitted an application and was solemnly ignored.
Click to expand...

Just looked at their website and seems they are now a multi platform broker with 7 platforms 😛. I need to check them out again they have moved on from how I remember them.

https://www.investorseurope.com/markets/platforms/

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JohnLocke]

Do you use such companies to cover all your "digital" investments @Martin Everson , what I mean is they offer ETF's and stock trading (just two examples) that mean if that is all you want to invest in you only need that single platform for all your investments right?

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[John Andrews]

Outlander said:
I finally opened an account at InvestorsEurope today. KYC was a PITA. I can't vouch for them, as I haven't used it in practice, but they do accepts IBCs.
Click to expand...

Have they asked you about the residency status of your IBC (tax ID, etc.)?

 

[Outlander]

mange38 said:
Have they asked you about the residency status of your IBC (tax ID, etc.)?
Click to expand...

No but they did ask my personal status.

 

[Martin Everson]

Admin said:
Do you use such companies to cover all your "digital" investments @Martin Everson , what I mean is they offer ETF's and stock trading (just two examples) that mean if that is all you want to invest in you only need that single platform for all your investments right?
Click to expand...

I have known the company for some years but never used them. But I would for any options needs. I need to check out the details of the platforms they offer. They white labelled a lot of platforms so need to check the underlying platform. Great non-EU platform if it checks out.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Outlander]

Martin Everson said:
I have known the company for some years but never used them. But I would for any options needs. I need to check out the details of the platforms they offer. They white labelled a lot of platforms so need to check the underlying platform. Great non-EU platform if it checks out.
Click to expand...

Their platform is RockTrader

 

[Martin Everson]

Outlander said:
Their platform is RockTrader
Click to expand...

RockTrader is Saxobank white label.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Patrick846]

I have a Belize LLC that was trading with IB for a few years and I receive the same email that they are closing my account. Looking for another broker... :-(

 

[Mr Magoo]

Patrick846 said:
I have a Belize LLC that was trading with IB for a few years and I receive the same email that they are closing my account. Looking for another broker... :-(
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what IB did you have your account with: US, UK?

 

[Patrick846]

Mr Magoo said:
what IB did you have your account with: US, UK?
Click to expand...

my account was with Interactive Broker US.

 

[Mr Magoo]

OK, me too. But havent had any notification yet. How long did they give you to move funds?