SIPP Product at Interactive Brokers

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Old Jan 24, 2011, 4:48pm   #101
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Well, good news. Gerald Perez at IB UK has confirmed that the same commissions apply to a SIPP as to a Standard account.

ie If trading 3 ES contracts at $2.01 that would be $6.03 comm. Also the futures margin has been confirmed as 150% of a standard account.

Furthermore Stadia have conceded that the $10 min for US trades, as shown on their website, is wrong. The $1 minimum is indeed correct. Also if using IB only the Stadia cost is £250 PA for their Option 1.

Hopes this helps. It is what I wanted to hear. Now I can do longer term position trading in my SIPP.

Brit
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Old Jan 24, 2011, 4:56pm   #102
 
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by britkid99 View Post
Well, good news. Gerald Perez at IB UK has confirmed that the same commissions apply to a SIPP as to a Standard account.

ie If trading 3 ES contracts at $2.01 that would be $6.03 comm. Also the futures margin has been confirmed as 150% of a standard account.

Furthermore Stadia have conceded that the $10 min for US trades, as shown on their website, is wrong. The $1 minimum is indeed correct. Also if using IB only the Stadia cost is £250 PA for their Option 1.

Hopes this helps. It is what I wanted to hear. Now I can do longer term position trading in my SIPP.

Brit
Thanks for that, it’s really helpful.
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Old Jan 24, 2011, 6:52pm   #103
 
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by britkid99 View Post
Well, good news. Gerald Perez at IB UK has confirmed that the same commissions apply to a SIPP as to a Standard account.

ie If trading 3 ES contracts at $2.01 that would be $6.03 comm. Also the futures margin has been confirmed as 150% of a standard account.
Hmmm I've just been to an IB webinar where Gerald Perez said that you can't trade futures because you can only have a cash account in a SIPP (ie no margin). They'll post a copy of the webinar here: http://www.interactivebrokers.com/en...p?ib_entity=uk

I think we would have to trade SPY (and the inverse ETF) rather than ES.

Still a bit of confusion here.


Chris
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Old Jan 25, 2011, 2:44am   #104
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by britkid99 View Post
Well, good news. Gerald Perez at IB UK has confirmed that the same commissions apply to a SIPP as to a Standard account.

ie If trading 3 ES contracts at $2.01 that would be $6.03 comm. Also the futures margin has been confirmed as 150% of a standard account.

Furthermore Stadia have conceded that the $10 min for US trades, as shown on their website, is wrong. The $1 minimum is indeed correct. Also if using IB only the Stadia cost is £250 PA for their Option 1.

Hopes this helps. It is what I wanted to hear. Now I can do longer term position trading in my SIPP.

Brit
Thanks for sharing Brit
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Old Jan 25, 2011, 8:53am   #105
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by MGBRoadster View Post
Hmmm I've just been to an IB webinar where Gerald Perez said that you can't trade futures because you can only have a cash account in a SIPP (ie no margin). They'll post a copy of the webinar here: http://www.interactivebrokers.com/en...p?ib_entity=uk

I think we would have to trade SPY (and the inverse ETF) rather than ES.

Still a bit of confusion here.


Chris

Thanks for the link, I see it is now posted and will view it tonight. I know Mr Perez has stated before on this thread that it is a cash account with no margin.

But if you check on the margin page here under Futures...
http://www.interactivebrokers.com/en...f&ib_entity=uk
It seems to back up what he told me yesterday by email.
Quote "In SIPP accounts, the initial and maintenance margin requirements for commodities are 150% of their normal margin requirements. Commodities include futures, futures options and single stock futures."

As you say this is still confusing.
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Old Jan 25, 2011, 4:02pm   #106
 
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Re: SIPP Product at Interactive Brokers

I got clarification of this from Gerald Perez. He said:
"SIPP accounts can only trade in a cash account.

Futures values can be very large in value, so they are not deemed to be purchased 100% of the value in cash. Thus we defer to asking the SIPP beneficiary to deposit a collateral which is 150% our standard margin requirements, in order to trade these products. Note: A respective SIPP Administrator still has to allow you to trade futures.

You cannot short futures, stocks or ETFs."
So it's not a margin account, but in order to go Long ES you only need to deposit "collateral" of 150% of what the margin would be.

If you want to Short the S&P you would have to go Long the inverse ETF (eg SH or SDS).


Cheers,

Chris
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Last edited by MGBRoadster; Jan 25, 2011 at 4:04pm. Reason: clarification
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Old Jan 25, 2011, 5:53pm   #107
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by MGBRoadster View Post
I got clarification of this from Gerald Perez. He said:
"SIPP accounts can only trade in a cash account.

Futures values can be very large in value, so they are not deemed to be purchased 100% of the value in cash. Thus we defer to asking the SIPP beneficiary to deposit a collateral which is 150% our standard margin requirements, in order to trade these products. Note: A respective SIPP Administrator still has to allow you to trade futures.

You cannot short futures, stocks or ETFs."
So it's not a margin account, but in order to go Long ES you only need to deposit "collateral" of 150% of what the margin would be.

If you want to Short the S&P you would have to go Long the inverse ETF (eg SH or SDS).


Cheers,

Chris
Thanks, Proshares also provide 3x leveraged long and short ETFs on US indices for short term traders. For the unitiated please be sure to understand (for the want of a better expression) the negative or inverse compounding effect when a trade goes against you. Direxion also do a selection and have a useful educational tool in their university
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Old Jan 25, 2011, 10:33pm   #108
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Re: SIPP Product at Interactive Brokers

After watching the IB presentation I am reminded that there is the usual $10/month minimum brokerage fee but that still makes IB extremely good value. At £6 for UK trade it is still the cheapest UK broker I can find. Plus access to the US markets at normal IB prices. It looks like Ultra and Ultra short ETFs are the way to go.

By the way in my investigations for Sipp brokers I have discovered that Moneycorps Markets NO LONGER provide a Sipp offering if anyone was thinking of that route.

Brit
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Old Jan 25, 2011, 11:15pm   #109
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Re: SIPP Product at Interactive Brokers

Quote:
Originally Posted by britkid99 View Post
After watching the IB presentation I am reminded that there is the usual $10/month minimum brokerage fee but that still makes IB extremely good value. At £6 for UK trade it is still the cheapest UK broker I can find. Plus access to the US markets at normal IB prices. It looks like Ultra and Ultra short ETFs are the way to go.

By the way in my investigations for Sipp brokers I have discovered that Moneycorps Markets NO LONGER provide a Sipp offering if anyone was thinking of that route.

Brit
I think you'll find that the $10 per month account maintenace fee is waived in months where one incurrs $30 or more in dealing commissions. It was the last time I looked, albeit some time ago.

I believe Moneycorp Markets discontinued their retail brokerage arm in it's entirety. They were a white label of Saxo Banks retail brokerage offering. Moneycorp SIPP account holders were offered a seamless transfer to Saxo Bank.
BTW, If anyone's interested in trading spot fx inside their SIPPS FXCM have SIPP administrator partners.
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Old Jan 27, 2011, 1:58am   #110
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Re: SIPP Product at Interactive Brokers

Per your comments "I think you'll find that the $10 per month account maintenace fee is waived in months where one incurrs $30 or more in dealing commissions." To clarify we ask a minimum brokerage fee of $10 per month. If you execute over $10 of commissions in a respective month you only pay the higher of the two fees.

To view real-time market data in the US (which includes shares, ETFs, options, futures, bonds, and forex) you have to pay $10 per month. If you execute over $30 of brokerage fees in a respective month the $10 fee is waived.
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