Interactive Brokers Q&A [2024]

I received following message at IBKR.
I have cash account. So I don’t understand what this means.

Can someone explain?

Following violation(s) have been detected for you account U*******: -
Excess Liquidity: URGENT: Please note that the qualifying equity within your account (i.e., Equity with Loan Value) is insufficient to satisfy the margin requirement and, to restore margin compliance, liquidation of positions may commence without further notice.

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Ask support? (sounds like a bug on their side if you have a cash account)

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I realised they sold one of my position to bring my account to 10 USD cash position. I think I made a mistake to run down the cash position to zero.

I should keep 50-100 USD always it seems

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Ah yes, you need to have enough cash to pay fee/commissions/etc.

Yeah

Anyways I got my first margin call it seems :smile:

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Why though? There aren’t any custody fees? What other fees could there be where you need a positive cash balance for?

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Look at Mr. pro-trader over here :joy:

Interesting, I did not know they would do this in cash accounts.

What did they sell? Only a few shares or a whole position?

I think it just assumes that it you want to sell anything, you need some money

Not sure what the logic is but it just sold fraction of one of my stock to get to 10 USD.

Margin call :telephone_receiver: 10 :dollar:

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But they could just take that from the sold amount no?

I’m also bit puzzled as this is exactly why I do have a cash account…

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I think you cannot sell a position if you have zero cash. The fees comes from cash and not from the security it seems.

Well, guess they just proved they (in principle) can do it by selling the share fraction in your ‘margin call’… :sweat_smile: That surely also did cost some fees, no?

I guess… I do not know their logic. but it seems they really need some money all the time. good they did not liquidate the portfolio on Friday evening :slight_smile:

I didnt write to customer service as they are always very slow.

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This is hilarious sh1t. They cannot take fees for an execution of a transaction because the proceeds are not settled (no money yet in your account). Then they liquidate something themselves and get apperently money immediately.

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I always keep 2k usd cash on my usd account just in case …

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It would be funny if on selling the $10 worth of shares, this created commission fees, which immediately put you in the red again, so they have to sell another $10 and then…

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I actually think they just wanted 2-3 USD , but they might have a code to get to 10

I can confirm that they want you to have ~10 USD/CHF left on the account.
My spreadsheet said I could buy X shares, but IBKR wouldn’t let me, so I bought X-1 shares and now there is more money on the account than one share is worth. :laughing:
Happend multiple times already since I invest via autoFX.

EDIT: I have a cash account.

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I’m assuming this is all because you are on cash account and not a margin account?

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Yes. No margin

I noticed that my daily activity statement no longer mentions whether my securities are segregated—it simply omits any reference to segregation. Has IBKR changed its reporting, or is this specific to my account? Does anyone know where I can now confirm if my securities are segregated?

I have a cash account, without stock lending participation or fractional shares.