Securities Lawyers Blog
The securities lawyers at Gana Weinstein LLP represent investors who have been mistreated by their brokers and suffered investment losses. Our firm is experienced in bringing claims against brokerage firms, such as Interactive Brokers LLC, to hold Wall Street responsible for their misconduct. When a client contacts our firm they can expect that our attorneys will have the knowledge and ability to evaluate the potential claims and analyze their trading activity for red flags of misconduct. Our consultations are designed to help provide clients with all available options.
Interactive Brokers LLC is the main U.S. broker-dealer of Interactive Brokers, offering automated trade execution and custody of stocks, options, futures, currencies, bonds, and funds to individual investors, hedge funds, proprietary trading groups, financial advisors, and introducing brokers. The company was founded in 1978 by Thomas Peterffy and gives clients from more than 200 countries and territories access to over 170 markets from a single platform.
Interactive Brokers LLC – By the Numbers:
- CRD #: 36418
- Regulatory Events: 92
- Arbitration Events: 26
- Broker Employees: 392
Interactive Brokers LLC – In the News:
FINRA v. Interactive Brokers LLC (Case #2019062038101) – From at least December 2017 to March 2022, Interactive Brokers failed to provide certain of its customers with a consolidated display containing all required market data elements at the point of order entry on its trading platforms. As a result, the firm violated Rule 603(c) of Regulation National Market System (NMS) under the Securities Exchange Act of 1934 and FINRA Rule 2010. In addition, from at least December 2017 to December 2022, Interactive Brokers failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Rule 603(c) of Regulation NMS. As a result, the firm violated FINRA Rules 3110 and 2010. For these violations, Interactive Brokers is censured and fined $150,000.
FINRA v. Interactive Brokers LLC (Case #2023077041401) – Between January 2022 and October 2024 (the relevant period), Interactive Brokers failed to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with the firm’s obligation to disclose to customers, at or prior to the time of trade, all material information concerning municipal securities transactions, including instances in which a municipal bond is trading at a market discount. Further, Interactive Brokers failed to provide material time of trade disclosures regarding certain market discounts to 130 customers in 1,918 transactions. As a result, Interactive Brokers violated MSRB Rules G-27 and G-47. For these violations, Interactive Brokers is censured and fined $125,000.
FINRA v. Interactive Brokers LLC (Case #2021071984801) – Between November 2019 and December 2024, Interactive Brokers failed to exercise reasonable due diligence before approving certain customer accounts that were not managed or advised by financial advisors or other third-parties (Self-Directed Customers) to trade options. During this period, the firm used a primarily automated system to approve or disapprove customers for options trading. However, the firm’s system was not reasonably designed and the firm approved certain Self-Directed Customers for options trading despite red flags that options trading was potentially inappropriate for them, as described below. The firm thus violated FINRA Rules 3110, 2360, and 2010.
FINRA v. Interactive Brokers LLC (Case #2022073912501) – From January 2020 through at least June 2022, Interactive Brokers failed to report to FINRA accurate statistical and summary information regarding written customer complaints. Prior to at least June 2022, the firm’s supervisory system, including written procedures, was not reasonably designed to achieve compliance with FINRA Rule 4530(d). As a result, the firm violated FINRA Rules 4530, 3110, and 2010. From July 2011 to September 2022, Interactive Brokers failed to timely report 91 regulatory actions and civil complaints. From March 2012 to February 2022, Interactive Brokers failed to file amendments to its Uniform Application for Broker-Dealer Registration disclosing 12 foreign regulatory actions against the firm’s foreign affiliates. As a result, the firm violated Article IV, Section 1(c) of FINRA’s By-Laws and FINRA Rules 4530, 1122, and 2010. For these violations, Interactive Brokers is censured, fined $400,000, and has agreed to undertake corrective action.
FINRA v. Interactive Brokers LLC (Case #2022075315101) – From October 2015 to December 2022, Interactive failed to detect customers with cash accounts who engaged in “free-riding,” the buying and selling of securities before paying for them, in options and issued options, on 4,229,709 occasions, in violation of Exchange Act Section 7(c), Regulation T of the Board of Governors of the Federal Reserve System and FINRA Rules 4210 and 2010. During the same period, Interactive also violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with Regulation T and FINRA Rule 4210.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.