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Interactive Brokers Debit MasterCard linked to Brokerage account

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Market Wizard
Gits (Hooglede) Belgium
Trading Experience: Master
Platform: NinjaTrader, Proprietary,
Broker/Data: Ninjabrokerage/IQfeed + Synthetic datafeed
Favorite Futures: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
rleplae's Avatar
Posts: 2,963 since Sep 2013
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Business is business

I also received the email.
This is a great smart move of IB and I like this additional service.

This will create customer retention (stickyness) based on depth of service as well as allow IB to tap into extra revenues.

The Masterard payment scheme (as is the Visa and some others) is a 4 party payment scheme,
as illustrated in the following diagram :

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While IB might not be a principal member of the card scheme, they have teamed up with a party called an 'issuer',
an issuer is responsible for issuing a card and providing card services. IB in this case most likely has a co-branding
agreement. The arrow from Acquirer to Issuer with the Interchange fee, this is a remuneration, that flows from the
acquirer to the issuer (likely to be split with IB)

This move also allows IB to keep the funds longer in their perimeter, because you can move money 'just-in-time'
to where you need it.

I think in some jurisdiction this could become very popular, it allows you make big trading profits and transfer
the profits 'under-the-radar' and spend them on some luxury expenses... This is even better than buying bitcoins...
To be watched closely.

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