Problems in opening IB account

This is a discussion on Problems in opening IB account within the Brokerages forums, part of the Commercial category; I have encountered problems while trying to open a universal margin account for individuals. Each time during the Investment Experience ...

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Old Jun 7, 2004, 1:45pm   #1
 
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Problems in opening IB account

I have encountered problems while trying to open a universal margin account for individuals. Each time during the Investment Experience stage, I am told that I do not have enough experience.

However, I say I have traded stocks, options and commodities 3, 1.5 and 2 years respectively, with trades per year amounting to 400, 150 and 300 respectively. I believe the experience is enough.

I wonder what I should do next? Thanks indeed.
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Old Jun 7, 2004, 1:55pm   #2
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From memory (and I could be wrong here) I think it has to be 2 years Min for every category

Paul
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Old Jun 7, 2004, 1:59pm   #3
 
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clylbw started this thread Hi Paul,

Thanks indeed.

May I also ask which base currency I should choose for my account? As I live in the UK and trade the US market, should I choose USD or GBP as my base currency?
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Old Jun 7, 2004, 2:20pm   #4
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Gbp/usd

CLYLBW,

This is entirely up to you. Most UK customers trading US products have GBP accounts with us. However, if you wish to have a USD account you may.

Points to be aware of:

With a GBP account we effectively lend you the USD to trade USD products, as long as your Sterling balance at the days prevailing exch-rate is enough to cover the postion. As you build up USD profits you will see a USD and GBP component to your statement. If you have a negative USD balance you will be charged interest.

To withdraw USD profits you need to convert the USD back to GBP within the account. At this point we will charge a commission. There is no fee for providing the USD loan to facilitate USD trading.

If you would rather not convert currencies through IB you are free to open a USD account.

If you would like further information please feel free to contact me.
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This correspondence is for information only and does not constitute advice from IBUK on securities, derivatives or commodities trading. Interactive Brokers UK ltd is regulated by FSA.

Gary Dibley

Interactive Brokers(U.K.) Limited
Regulated by FSA
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Old Jun 7, 2004, 2:38pm   #5
 
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clylbw started this thread Hi Gary,

Many thanks indeed.
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Old Jun 7, 2004, 2:46pm   #6
 
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Hi Gary

From other posts on here I'd thought that a GBP account would hold profits in GBP as well as the initial balance. But in your post you state that profits / losses would still accrue in USD. I thought that a GBP account would protect you from FX rate movements, but from what you have said, you would be covered on the initial account balance but not on any profits made. Is this correct ?

Thanks

Stew
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Old Jun 7, 2004, 3:08pm   #7
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Lynn,

I would still go for GBP as base currency. If you had opened an account in USD last July then you would have lost nearly £3K in exchange rate differences and in the end you want your money in GBP. Of course it could have gone the other way. If you want some protection you can always convert half your account to USD which is inexpensive to do but I would still keep my base in GBP.


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Old Jun 7, 2004, 3:17pm   #8
def
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it should also be noted that the spread IB charges for converting between different currencies is FAR better than what you'd get via doing it at a bank. Thus even if you desire to maintain your account in USD but need to convert from GBP to get there, you are probably better off doing it via IB than your bank. The main consideration on the choice of currency you fund in should thus be the currency you maintain at your bank in which you want to send in or withdraw funds. (i.e. if you are paid in GBP, you should fund in GBP)
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Old Jun 7, 2004, 3:20pm   #9
 
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clylbw started this thread Hi Paul, def,

Thanks really for your help.
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Old Jun 7, 2004, 3:55pm   #10
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Quote:
Originally Posted by theknifemac
Hi Gary

From other posts on here I'd thought that a GBP account would hold profits in GBP as well as the initial balance. But in your post you state that profits / losses would still accrue in USD. I thought that a GBP account would protect you from FX rate movements, but from what you have said, you would be covered on the initial account balance but not on any profits made. Is this correct ?

Thanks

Stew
Stew, that is correct, perhaps we could set something up to automatically convert back to base currency once a customer determined amount of non-base currency is reached.
__________________
This correspondence is for information only and does not constitute advice from IBUK on securities, derivatives or commodities trading. Interactive Brokers UK ltd is regulated by FSA.

Gary Dibley

Interactive Brokers(U.K.) Limited
Regulated by FSA
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