Problems in opening IB account

[clylbw]

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.

 

[Trader333]

From memory (and I could be wrong here) I think it has to be 2 years Min for every category

Paul

 

[clylbw]

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?

 

[Gary (IB Rep UK)]

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.

 

[clylbw]

Hi Gary,

Many thanks indeed.

 

[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

 

[Trader333]

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.


Paul

 

[def]

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)

 

[clylbw]

Hi Paul, def,

Thanks really for your help. 🙂

 

[Gary (IB Rep UK)]

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.

 

[undertaker]

Chaps - do you use the Java version of IB or the downloaded version?

Any issues you've come accross with either version - I'm thinking of trying out the java version.

cheers

 

[Trader333]

All versions require Java, it is just that one is internet based and if you download the standalone version you still need to have Java installed on your PC to use it. I only use the standalone version and would never consider using otherwise.


Paul

 

[undertaker]

sorry - that's what I meant....standalone vs Internet based.

I - guess standalone it is then.

 

[clylbw]

Further difficulty in opening an IB account

I have finally got through the experience bit, but now I am facing further difficulty in opening an IB account.

It is the personal information that is causing problem. I cannot understand how such a relatively straightforward part can be problematic, but it is 😱 .

I believe it is the phone number that has caused the 'error'. I first entered it as 0161 *** ****, and it was rejected; then I entered it as 44161*******, also rejected. Can you please tell me what is the right form for the phone number?

Also, in the address box, can I put comma there? Or do I have to enter all my address in one line without any comma?

I am already feeling a bit put off by the application process. For such a reputable company, I would expect more straightforward and clearer application process than the one I have received. At the very least, there should be explanation of the 'errors', as they call the problems, not just tell people to start from the beginning without any explanation each time an 'error' occurs.

 

[Gary (IB Rep UK)]

I have finally got through the experience bit, but now I am facing further difficulty in opening an IB account.

It is the personal information that is causing problem. I cannot understand how such a relatively straightforward part can be problematic, but it is 😱 .

I believe it is the phone number that has caused the 'error'. I first entered it as 0161 *** ****, and it was rejected; then I entered it as 44161*******, also rejected. Can you please tell me what is the right form for the phone number?

Also, in the address box, can I put comma there? Or do I have to enter all my address in one line without any comma?

I am already feeling a bit put off by the application process. For such a reputable company, I would expect more straightforward and clearer application process than the one I have received. At the very least, there should be explanation of the 'errors', as they call the problems, not just tell people to start from the beginning without any explanation each time an 'error' occurs.

CLYLBW,

I will be happy to assist your account opening, please give me a call at the number below.