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]

- did you have similar experience with InteractiveBrokers?

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

- is there some new regulation/law that push brokers to limit exposure to "high risk countries"

Commonsense law

or do you think it's only IB activity and other brokers can still accept Seychelles IBC?

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

- if you were in same situation, what would be your plan B?

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

 

[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]

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.

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

 

[Outlander]

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

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]

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.

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/

 

[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?

 

[John Andrews]

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.

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

 

[Outlander]

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

No but they did ask my personal status.

 

[Martin Everson]

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?

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.

 

[Outlander]

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.

Their platform is RockTrader

 

[Martin Everson]

Their platform is RockTrader

RockTrader is Saxobank white label.

 

[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]

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... :-(

what IB did you have your account with: US, UK?

 

[Patrick846]

what IB did you have your account with: US, UK?

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?