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Interactive Brokers

Financials

47

out of 100. Number 242 of 512, counting from the worst.

  • Arbitration 15 of 20, bad
  • Renewals 2 of 20, good
  • Data sharing 8 of 20
  • Price & terms 12 of 15, bad
  • Data retention 3 of 15, good
  • Other findings 7 of 10, bad

Where Interactive Brokers does well

  • Renewals 2 of 20. Few problems found.
  • Data retention 3 of 15. Few problems found.
  • The privacy policy states outright: 'We do not sell your personal information to any third party,' and requires service providers (including AWS/Azure) to sign confidentiality agreements limiting use — better than data-monetizing peers.
  • No auto-renewal or cancellation-trap mechanics anywhere in the agreement; the account can be closed electronically through the IB website.
  • The arbitration clause uses the full FINRA-mandated disclosure with explicit warnings (limited appeals, industry-affiliated arbitrators, class-action carve-out) rather than hiding it.
  • The agreement requires amendment in writing by an IB officer, so terms can't be silently changed by support staff; and the 'we generally will not issue margin calls' policy is disclosed bluntly up front rather than discovered after a liquidation.

You waive your right to sue Interactive Brokers in court.

The fine print

6 clauses and findings from the draft archive, dated 1 October 2026. The plain English comes first; the small print is the company's own words. None of these has been checked yet.

  1. You waive your right to sue Interactive Brokers in court. Nearly every dispute goes to private arbitration before a panel that can include people from the securities industry itself, with very limited ability to appeal.

    This agreement contains a predispute arbitration clause. By signing an arbitration agreement the parties agree as follows: ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED. ... THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY.

    Interactive Brokers LLC Customer Agreement (Form 3007, 03/10/2015)

  2. IBKR can raise your commissions and fees the instant it posts new rates on its website — no advance consent or grace period required.

    Commissions and fees are at the rates specified on the IB website unless a specific commission/fee schedule has been agreed in writing between Customer and IB. If no written commission/fee schedule has been agreed between Customer and IB, changes to commissions/fees are effective immediately upon either of: posting on the IB website or email or other written notice to Customer.

    Interactive Brokers LLC Customer Agreement (Form 3007, 03/10/2015)

  3. IBKR can change margin rules whenever it wants, won't warn you with a margin call, and can sell off your holdings without notice. If the forced sale leaves your account in the red, you owe the difference — with no recourse even if rebuying costs you more.

    IB MAY MODIFY MARGIN REQUIREMENTS FOR ANY OR ALL CUSTOMERS FOR ANY OPEN OR NEW POSITIONS AT ANY TIME, IN IB'S SOLE DISCRETION. ... IF AT ANY TIME CUSTOMER'S ACCOUNT HAS INSUFFICIENT EQUITY TO MEET MARGIN REQUIREMENTS OR IS IN DEFICIT, IB HAS THE RIGHT, IN ITS SOLE DISCRETION, BUT NOT THE OBLIGATION, TO LIQUIDATE ALL OR ANY PART OF CUSTOMER'S POSITIONS IN ANY OF CUSTOMER'S IB ACCOUNTS, AT ANY TIME AND IN ANY MANNER AND THROUGH ANY MARKET OR DEALER, WITHOUT PRIOR NOTICE OR MARGIN CALL TO CUSTOMER. CUSTOMER SHALL BE LIABLE AND WILL PROMPTLY PAY IB FOR ANY DEFICIENCIES IN CUSTOMER'S ACCOUNT THAT ARISE FROM SUCH LIQUIDATION OR REMAIN AFTER SUCH LIQUIDATION. IB HAS NO LIABILITY FOR ANY LOSS SUSTAINED BY CUSTOMER IN CONNECTION WITH SUCH LIQUIDATIONS ... EVEN IF CUSTOMER RE-ESTABLISHES ITS POSITION AT A WORSE PRICE.

    Interactive Brokers LLC Customer Agreement (Form 3007, 03/10/2015)

  4. Everything in your account is pledged as collateral to IBKR, and it can lend out your securities and keep the profits for itself — while such loans can strip your voting rights.

    All Customer assets of any kind held by or on behalf of IB for Customer's account are hereby pledged to IB and are subject to a perfected first priority lien and security interest in IB's favor to secure performance of obligations and liabilities to IB arising under this or any other Agreement. ... As allowed by law, IB is authorized by Customer to lend to itself or others Customer securities or assets. IB may, without notice, pledge, repledge, hypothecate or rehypothecate Customer securities and assets, separately or together with those of other customers... For loans of securities, IB may receive financial and other benefits to which Customer is not entitled.

    Interactive Brokers LLC Customer Agreement (Form 3007, 03/10/2015)

  5. Your personal data can be handed to advertising and marketing vendors — including to target people 'like you' (lookalike audiences).

    We may share your Personal Information with marketing and advertising service providers to provide marketing and advertising services on our behalf to you and others like you or to reduce the marketing you receive.

    Interactive Brokers Group Privacy Policy (Doc 2192, 18 June 2026)

  6. Even if IBKR acts egregiously, you can't win punitive damages; every call with them is recorded by default; and IBKR can hand your whole agreement (and account) to another broker-dealer on notice alone, while you can't transfer yours without their permission.

    IN ALL JUDICIAL ACTIONS, ARBITRATIONS OR DISPUTE RESOLUTION METHODS, THE PARTIES WAIVE ANY RIGHT TO PUNITIVE DAMAGES. ... Customer consents to recording of all telephone conversations. ... Customer may not assign or transfer any rights or obligations hereunder without the prior written consent of IB. Upon notice to Customer IB may assign this Agreement to another brokerdealer or futures commission merchant.

    Interactive Brokers LLC Customer Agreement (Form 3007, 03/10/2015)

How these were found

Customer agreement text read in full from IBKR's official sample-view page at interactivebrokers.com (Form 3007, dated 03/10/2015, institutional sample view); the individual-account Form 3007 is substantively identical and was cross-checked against the 2018 Form3007.pdf mirror (investallfaqs S3). The IBG Privacy Policy is document 2192 dated 18 June 2026, read via the waterfallwealth.ai mirror of IBKR's official PDF (IBKR's own site blocks some direct fetches). An earlier attempt at formdb=4311 returned an advisor agreement, not a client agreement, and was not used. Scores reflect US Interactive Brokers LLC terms; non-US IBKR entities have different agreements. All clauses above were read directly; paraphrase wording tightened for readability but tracks the source text.

These notes come from the original draft and are not independent verification.