Best Thread Interactive Brokers

CFDs

@Interactive Brokers:

Are there any plans to offer mid to small cap equities i.e. the rest of LSE on IBCFD soon? You have a very limited range currently... I"m sure you would have an avalanche of new customers if you offered AIM CFDs for example...
 
def said:
1. IB UK
2. you don't need 25K to open an account. it's 10K. The 25K is required if you are going to actively trade US stocks to avoid being restricted by the US pattern day trading status rules
3. yes
4. i believe capital gains (others can confirm)
5. yes, you'll need to pay monthly minimums and data fees. All costs are transparent, take a review of the links under this link: http://www.interactivebrokers.com/en/pagemap/pagemap_fees.php
Click to expand...

4. Capital gains tax is payable on....well, capital gains. Dividends are taxed as income so if they are paid gross as a result of completing a W8 BEN then you will need to declare them to HMRC anually. Tax is decucted at source on dividends from UK companies so there is no tax to pay unless one is a higher rate taxpayer as far as income tax is concerned.
 
Re: CFDs

MrMiyagi said:
@Interactive Brokers:

Are there any plans to offer mid to small cap equities i.e. the rest of LSE on IBCFD soon? You have a very limited range currently... I"m sure you would have an avalanche of new customers if you offered AIM CFDs for example...
Click to expand...

Thank you for you feedback. Currently we only support FTSE 100 and 250 shares - CFDs. Shortly we will expand to the FTSE 350 and the more products. Please stay tuned.

NEW: We just lowered our CFD UK share commissions:

5 to 2 basis points. That is the more you trade the less you pay per month.

Refer to the following link for more details http://www.interactivebrokers.com/en/p.php?f=commission&ib_entity=uk
 
danjuma said:
Just a bit of advice please.

I am a complete newbie but would like to paper trade trading US stocks for a while before eventually going live. I intend to use Interactive brokers as they have good reviews. I have had a quick look at their site to try and find answers to my questions, but I am still slightly confused. My questions are:

1. As a UK resident, do I have to register with IBUK, their 'introducing brokers' , and not IB itself based in the US?

2. The reason for the above question is because, IBUK require a minimum of $10,000 to open an account, while IB in US requires a minimum of $25,000 to open an account. Just wondering why the big difference and whether there are some restrictions with the UK account?

3 . If I open an account with IBUK, would I have access to trade on all the US stocks available via IB in US?

4. As a UK full-time working resident trading US stocks, I know guys here are not tax experts, but just wanted a rough idea, where do I stand in terms of tax payable, would it be income tax or capital gains tax?

5. Obviously, I intent to paper trade this method for a while, as well as practice using IB's TWS and other applications, I know from their site IB offer something called Papertrader, a simulated trading account to practice with, which one can create after registering and opening a live account with IB.
So my plan is to open an account with IB, but not carry out any live trading but just use the papertrader account to paper trade for a while. My question is does anybody know whether I will incur any fees and charges from IB even though I am not trading live. As some of their charges/fees etc are based on how active you account is, or how much commission you make for them per month etc?

Many thanks
Dan

PS. I realise I can direct these questions to IB directly themselves, but sometimes you get quicker response and far more useful answers from people that have actually experienced using the services, and not some standard automated reply :)
Click to expand...

Dear Dan

Thank you for your interest in Interactive Brokers.

Answers to your questions are as follows:

1. Contingent where you are a resident determines where you can apply to be our client. For example, if you are a client of the UK you can apply with Interactive Brokers (UK) Limited = IBUK.

2. Regardless if you open up an account with the LLC in the US or IBUK the minimum initial deposit is $10,000 or the equivalent in any of the other currencies we support. If you decide to Pattern Day Trade in the United States you are required to have => $25,000 in cash/securities. The aforementioned is a US market rule, not our rule.

3. Yes if you open an account with interactive Brokers UK Limited you could trade up to 90 global exchanges (including the US).

4. When complete our online application you will be required to complete the applicable US tax form. In this form you can declare to pay your capital gains tax in your country of residence.

5. In order to receive the a live paper trading account you will be required to open an account. The minimum deposit is again $10,000, the minimum brokerage fee per month is $10, and any applicable live market data feeds.

We do support a demo account online with delayed market data. Please refer to our website for more information. www.interactivebrokers.co.uk
 
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Interactive Brokers now offers a mobile TWS. With mobileTWS, you can:

- View real-time streaming quotes, charts and scanners.
- Trade stocks, options, futures, futures options and forex worldwide.
- SmartRoutingTM technology searches for the best price and dynamically routes and re-routes all or part of your order to achieve optimal execution.
- Monitor your trades, portfolio and account information.
- Set price alerts with email notification.
- Take a call and reconnect to mobileTWS for up to 10 minutes without having to log back in.

For more details click the following link
http://www.interactivebrokers.com/en/p.php?f=iTWS&ib_entity=llc
 
I take it there is no plan for an Andriod phone version then? Why do companies/software developers out there assume the whole world uses the over-hyped iphone?
 
From people's experience, which is the cheapest or most cost-effective way to transfer funds from your UK account to your IB's account, if you have opted for USD as your base currency with your IB account? Thanks.
 
IB Communique

Earn Additional Yield on Your Fully-Paid Stock
Did you know that you can earn additional yield on stock you own by allowing your fully-paid shares to be loaned out? Many stocks are attractive to traders who want to sell them short, and who therefore need to borrow them. IB's new Stock Yield Enhancement Program earns you extra income on your fully-paid stocks by allowing IB to borrow them from you and then lend them out to other IB customers or in the securities lending market. Every day that your stock is loaned out, you will be paid a loan fee based on market rates. You will pay a percentage of this to IB (currently 50%) as a fee for managing the program.

To find out how easy it can be to earn extra income on your fully-paid shares, see the IB Stock Yield Enhancement Program highlights page. http://www.interactivebrokers.com/e...tockYieldEnhancementProgram.php?ib_entity=llc
 
IB News

Portfolio Analyst Updates
We have recently added several reports to PortfolioAnalyst, our online reporting tool that allows investors to evaluate the performance of their IB portfolio against industry benchmarks. These include:

Risk Measures - Shows the current risk of your portfolio in a line chart and text summary. The line chart plots Value-Added Monthly Index (VAMI) over the specified time period. The text summary shows a variety of risk measures.
Risk Measures Benchmark Comparison - Select up to three global industry benchmarks against which you want to compare the current risk of your portfolio in a line chart and text summary. The line chart plots Value-Added Monthly Index (VAMI) over the specified time period for your portfolio and for your selected benchmarks.
Deposits and Withdrawals - Shows the inbound and outbound cash and position transfers (including cash deposits and withdrawals) in your account for a specified time period.
Fee Summary - Lists all fees that were charged to your account in the specified time period with totals at the bottom of the list.

In addition to these new reports, the following enhancements have been added:
Over 150 Industry Benchmarks - PortfolioAnalyst now offers more than 150 different industry benchmarks against which you can compare the performance of your portfolio.
Glossary - In addition, PortfolioAnalyst Detailed PDF Reports now include a glossary of terms used in the reports. All Detailed PDF Reports automatically contain the glossary.

Learn how http://www.interactivebrokers.com/e...entusersguide/reportmgmt/portfolioanalyst.htm
 
IB News

We are pleased to announce the following new products and exchanges:
- Hong Kong Mercantile Exchange (HKMEX) initially offering Gold Futures.
BATS Europe.
- Tradegate (TGATE) German exchange as part of our German smart routing algorithm.
- New Mutual Fund families Federated Investors and Empiric Funds.
- Israeli shekel (ILS) added as a currency for interest purposes. EUR.ILS and USD.ILS Forex pairs.
- As of May 23rd, the Frankfurt Stock Exchange (FWB) stopped charging specialist fees for stock executions. As a result, IB will no longer pass these fees through to our customers.

We have recently revamped our pricing and lowered our fees for Japanese products including N225 options and futures.

To keep up to date on all of our recent product and exchange offerings, visit the New Products page on the
IB web site.
 
Last edited:
Ok, need a bit of advise please regarding funding my account;

I want to fund my IB account with the $10,000 minimum amount from my UK based bank account (via SWIFT). I have opted for USD as base currency in my IB account as I am planning to trade US stocks. Now taking into consideration exchange rates, transfer fees, conversion fees etc, which is the best way to go about this?

1. Transfer the funds as GBP from my UK account to my IB account, and let IB convert it into USD before crediting it into my account (don't know the exchange rates they use, and whether there are any associated fees with this).
OR
2. Transfer the funds from my UK account as USD (let my Bank convert it to USD at their own exchange rate) before transferring it to my IB account?

I hope I am making sense?

Thanks
 
danjuma said:
Ok, need a bit of advise please regarding funding my account;

I want to fund my IB account with the $10,000 minimum amount from my UK based bank account (via SWIFT). I have opted for USD as base currency in my IB account as I am planning to trade US stocks. Now taking into consideration exchange rates, transfer fees, conversion fees etc, which is the best way to go about this?

1. Transfer the funds as GBP from my UK account to my IB account, and let IB convert it into USD before crediting it into my account (don't know the exchange rates they use, and whether there are any associated fees with this).
OR
2. Transfer the funds from my UK account as USD (let my Bank convert it to USD at their own exchange rate) before transferring it to my IB account?

I hope I am making sense?

Thanks
Click to expand...

===================

Dear Client

The IB Universal Account allows you to trade multiple products around the world from a single account. You can trade stocks, options, futures, Forex, bonds and funds all from the same Trader Workstation screen, and your transaction history and positions are all reported on a single statement.

Trading around the world can be simple, because you are not required to open accounts in multiple currencies. Deposit a single currency in an account and when you want to trade a product denominated in another currency, a loan is created which is secured by your deposited currency. If you wish to eliminate the loan, you may do so at any time by trading currencies through our IB IDEAL network or depositing money in another currency. You will find that our currency exchange rates are much better than retail banks or exchange rates offered by the credit card companies.

For each account a single base currency designation must be made that determines an account's statement and margin requirement translation currency. However, deposits and withdrawals may be made in any non-base currency in AUD, CAD, CHF, EUR, GBP, HKD, JPY, MXN, SEK or USD.
 
Interactive Brokers said:
===================

Dear Client

The IB Universal Account allows you to trade multiple products around the world from a single account. You can trade stocks, options, futures, Forex, bonds and funds all from the same Trader Workstation screen, and your transaction history and positions are all reported on a single statement.

Trading around the world can be simple, because you are not required to open accounts in multiple currencies. Deposit a single currency in an account and when you want to trade a product denominated in another currency, a loan is created which is secured by your deposited currency. If you wish to eliminate the loan, you may do so at any time by trading currencies through our IB IDEAL network or depositing money in another currency. You will find that our currency exchange rates are much better than retail banks or exchange rates offered by the credit card companies.

For each account a single base currency designation must be made that determines an account's statement and margin requirement translation currency. However, deposits and withdrawals may be made in any non-base currency in AUD, CAD, CHF, EUR, GBP, HKD, JPY, MXN, SEK or USD.
Click to expand...

Ok, many thanks for your reply. So in simple English, with reference to my original question, am I better off with option 1 or option 2? :) Cheers
 
danjuma said:
Ok, many thanks for your reply. So in simple English, with reference to my original question, am I better off with option 1 or option 2? :) Cheers
Click to expand...

Dear Client

We are a non advisory broker so we cannot advise you, although we can provide you a brief:

a) Our IB Universal Account allows you do deposit one currency that will allow you to trade seamlessly all the products we support denominated in different currencies. You will have to pay a small loan (rates denoted on our website) every day your loan is outstanding.

b) You can deposit a base currency and use our FX Trader (IDEAL) to convert funds in different currencies. Our spreads are denoted on our website.

c) You can convert yours funds in at your bank and then transfer in different currencies.

Which option you choose above depends on what you believe makes it easier for you and how to best minimise your (FX) risks.
 
I have some questions concerning the "IB Stock Yield Enhancement Program":

1) I am a non-American resident and have filed a W8-form. On the dividends I receive I therefore pay 15 % which are automatically withheld by Interactive Brokers (and I can later get these back by deducting them from my dutch taxes).

What happens if my stock is lend out when the stock goes ex-dividend? What percentage is withheld then? Does Interactive brokers do this automatically?

2) I read somewhere you can also lend your stocks out manually and if you do so you do not have to pay the 50% handling fee of Interactive brokers.

a) Is this true?
b) Are there certain minimums with respect to numbers of stocks and/or value of the stocks to lend out
c) What is the fee IB will receive then?

Thanks in advance
 
Portfolio Management software for IB

Hi

Can someone please recommend a good portfolio manager that can download transactions and/or synchronise with IB for:
- Monitoring current positions
- Monitoring past positions
- Export to Excel

Thanks!
 
Hello IB,

I was looking to add NASDAQ level 2 (and time & sales) to my data sub. However, can't see this on the list. All I can see is 'NASDAQ TotalView Non-Professional'. Is this the same thing? Thanks
 
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