IB, which started offering the tokens to a selected number of clients several months ago, has extended its Secure Transaction Program (STP) to more users. Customers who do not qualify for the identity token are limited to a maximum withdrawal of $100,000 per day.

"Customers with over $100,000 in equity will be offered a free IB identity token which generates single-use passwords that will be required for each and every cash withdrawal," said IB managing director Steve Sanders. "We are very mindful of security issues."

The IB Identity Token is a device small enough to fit on a keychain. It generates a new, single-use password for each IB logon for secure transactions. Because the password is valid only once, it is of no use to snoops and hackers.

Even if someone were to steal an IB customer's name and account password, it would be impossible to withdraw funds from the customer's account without the added information provided by the IB Identity Token. A further safety feature allows customers to lock the token with a Personal Identification Number (PIN) that only they know.

The STP feature is an added layer of security to IB's existing safe application and registration system where information is accessed through a Secure Socket Layer (SSL). IB's web-accessed Trader Workstation (TWS) encrypts the customer's password to ensure that nobody can read it and log into the account. SSL provides enhanced privacy and integrity to the information customers send over the Internet.