Why do certain cash deposit and withdrawal requests require that an instruction be created while others do not?

Overview: 

 

Whether or not an instruction is required is a function of both the transaction type (i.e., deposit or withdrawal) and its underlying method (i.,e. check, ACH initiated at IBKR or wire).  In general, if the deposit method dictates that IBKR pull funds directly from the client’s account or if the withdrawal method dictates that IBKR push funds directly to the client’s account, an instruction will be required in order to obtain the necessary account specific information and authorization to act.  Outlined in the chart below are the possible scenarios.

 

 

 

INSTRUCTION REQUIREMENTS BY TRANSACTION TYPE & METHOD (Yes/No)

 

Check

ACH – at Bank

ACH – at IBKR

EFT

Wire

Deposit

No

No

Yes

Yes

No

Withdrawal

No

N/A

Yes, if instruction is  created as  Debit/Credit, no  if  Credit only

Yes

Yes