Interactive Brokers - Ltd Co. Account

[Airthrey Capital]

Has anybody here opened an account with IB using a limited company status?

What documentation did you require?

Was it a lengthy process?

Any restrictions in opening the account?

Does anybody here trade options through IB?...Would you recommend them?

 

[theknifemac]

Has anybody here opened an account with IB using a limited company status?

What documentation did you require?

Was it a lengthy process?

Any restrictions in opening the account?

Does anybody here trade options through IB?...Would you recommend them?

Haven't opened a ltd co trading account with IB but did enquire. It is possible, just need more paperwork, if you contact them they can let you know what is required, or pm me with email and I can forward the mail they sent me.

Cheers

Stew

 

[MGBRoadster]

As far as I remember it's pretty straightforward - it's not much more than the usual personal ID stuff for Director and Co Sec.

It shouldn't take any longer than opening a personal a/c, although in my case I applied when my accounts were overdue, so I had to wait until they'd been registered on the Companies House website.

 

[LION63]

Assuming one can open an account without any difficulty, what is the purpose and/or the benefits of trading as a limited company as opposed to trading in one's own name?

 

[donaldduke]

Lion,

I dont think the two are exclusive, you can trade through a limted company and still trade your own account too (atleast until you reach your 8K CGT allowance).

With a Ltd co. You get to claim expenses etc You get the normal 5K free tax allowance on
anything you pay yourself. You feel like you are running a business rather than feeling like youre
unemployed.

If i ever open an company account with IB it will be for an offshore company to save on the corp tax.

IB have a list of offshore havens from which you can operate.

I presume its even harder (ie even more paper work) to open an offshore company with IB
than a UK ltd one though.

 

[LION63]

Donaldduke,

Many thanks.

Are you aware that if you trade as an individual you can still claim expenses against your trading income? Internet connection; subscriptions; depreciation on equipment, cost of courses etc. As you have said , that is before CGT or your tax allowances. Running a limited company as well means that there is the small companies tax allowance before taxes become due (last time I checked that was another £10,000). Not bad when they are all added together.

Would you agree that it probably nullifies the sales pitch of the spread betting companies that with them winnings are tax free (at least for the small/average trader) as we have already managed to avoid paying taxes on the first say - £25,000.

You will probably find that using an offshore company is only worthwhile if one is making in excess of £50,000.

 

[Roberto]

You will probably find that using an offshore company is only worthwhile if one is making in excess of £50,000.

Yes indeed; I think that's about right ... maybe even £60,000 now. To "run a paper company" from Guernsey is slightly more expensive than people realise, too. If you go about it in any way other than "on the cheap" (i.e. unreliably), it's going to come to at least £2,500 a year by the time you factor in the unexpected expenses.

 

[harryc]

LION63 wrote :

"Are you aware that if you trade as an individual you can still claim expenses against your trading income? Internet connection; subscriptions; depreciation on equipment, cost of courses etc. As you have said , that is before CGT or your tax allowances. "

You'd be surprised how many self-employed traders are not aware that this can be done . Helps if you have a good accountant .

Pros and cons to both - sole trader vs limited co , i went the self employed , sole trader route - like I said a good accountant will set these out in detail

 

[theprophe]

Hi, what are the list of offshore countries? i couldn't see anywhere on their website where it is listed

Lion,

I dont think the two are exclusive, you can trade through a limted company and still trade your own account too (atleast until you reach your 8K CGT allowance).

With a Ltd co. You get to claim expenses etc You get the normal 5K free tax allowance on
anything you pay yourself. You feel like you are running a business rather than feeling like youre
unemployed.

If i ever open an company account with IB it will be for an offshore company to save on the corp tax.

IB have a list of offshore havens from which you can operate.

I presume its even harder (ie even more paper work) to open an offshore company with IB
than a UK ltd one though.