Interactive Brokers Account Closure

Interactive Brokers decided to close my account towards the end of last year, after being with them for more than six years. Despite my best efforts, I was unable to get a clear answer behind their decision. The only thing I can think of is that I was testing my auto trading system for about 3 weeks prior to the closure. This algorithmic system can be classed as frequent or scalping trading.

Does anyone else has similar experiences with IB or any other brokers?

Are there alternative brokers that allow auto trading via plugins?

Thank you for your time.

@aaskari, I have read elsewhere about another user who received the same treatment from IB.
In his case, he was resident in a South-America country, and as far as I remember, the reason was tied to the significant flow of in/out money on his account.

Anyway, re AutoTrading, unfortunately at present, AmiBroker officially only support its open-source IBController, but there is a thread where @Tomasz ask for feedback about the idea to create a new version that can be easily adapted to trade with any broker that provide a REST API.

While this will eventually widen the numbers of "auto-tradable" brokers with AB, it will not solve the problem for people that need to trade intraday (in such a case, you will also need an additional plugin to get the real-time data feed).

Googling, I saw some local brokers (India, Brazil) that provide AB (unsupported) plugins to trade directly with them. Still, I do not use them nor know anyone who has any direct experience.

Thank you for your kind reply.

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@aaskari, I just remembered an article I read that might better explain why it happened in some cases (like in the one I cited above):

Interactive Brokers Blocks Suspicious Accounts

SEC Charges Interactive Brokers With Repeatedly Failing to File Suspicious Activity Reports

It seems that IB chose the most effortless way: closing any account that apparently was not compliant with the new restricted (KYC) rules.

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For three or four years I have been using an autotrading system Amibtoker-TWS with an average frequency of 20-60 deals per trading session. There were no problems with IB. But in 2020 IB was fined $ 38 million for violating AML. After that, massive checks of users by the IB and massive account closings began.

Good to hear that my trading style may not have been the reason for the account closure. Thanks.