If your account balance becomes negative at Interactive Brokers (IBKR), several actions may be taken depending on the type of account and the specific circumstances:
- General Process:
- The Compliance team will contact you to begin the repayment process.
- For European customers:
- The European Risk team will contact you first.
- If the deficit remains uncovered, the account is transferred to the Legal Group.
- Cash Accounts:
- Cash accounts must maintain a positive cash balance.
- If your cash account balance becomes negative, you may be charged interest.
- Interest is calculated based on the negative balance and the number of days it remains negative.
- Interest charges will be deducted from your USD balance on the 3rd or 4th working day of the following month.
- Margin Accounts:
- Margin accounts must have positive Excess Liquidity.
- A minimum balance is required to trade in margin accounts.
- If your account's Net Liquidation Value goes negative, you may owe money to Interactive Brokers.
- Securities Sale:
- Interactive Brokers may sell securities from your account to cover the deficit.
- This sale will be executed at IBKR's discretion without prior notification.
- The sale aims to cover the negative balance and bring your account back to a positive status.
Additional Information