Interactive Brokers - SGD now available for funding

[chainer22]

1. Only TWS allows you to use the FXCONN method of FX. With WebTrader and mobile you are limited to IDEALPRO. The problem with IDEALPRO is that it adds an annoying FX line to your portfolio to track you FX P/L. That can be removed using some non-trivial process, but it's just easier to use only the TWS.


2. No, your order will just be cancelled with insufficient funds of the appropriate currency

What is this line in your statement annoying? Just ignore it. I don't understand that part, other than many people occasionally ask "What is this line in my statement?" and some people find those questions annoying.

If you don't like TWS and prefer WebTrader, I really don't see the problem here. Just use WebTrader...and ignore the extra line in your statement, that's all.

ahah thanks both! i can finally proceed with my first overseas stock purchase

update: i tried buying 2K USD and i got a message stating "Confirm Mandatory Cap Price". What is this?

 

[boolCano]

What is this line in your statement annoying? Just ignore it. I don't understand that part, other than many people occasionally ask "What is this line in my statement?" and some people find those questions annoying.

If you don't like TWS and prefer WebTrader, I really don't see the problem here. Just use WebTrader...and ignore the extra line in your statement, that's all.

From the steps taken to avoid that statement line, i guess its not useful for keeping track of conversions. Any reason why ?

 

[Shiny Things]

update: i tried buying 2K USD and i got a message stating "Confirm Mandatory Cap Price". What is this?

Y'know, if you read the message, I think that one's pretty clear what it is.

Or let me google that for you.

 

[Shiny Things]

What is this line in your statement annoying? Just ignore it. I don't understand that part, other than many people occasionally ask "What is this line in my statement?" and some people find those questions annoying.

You'd be surprised. The problem is that if you use IDEALPRO it starts tracking PnL on that position, and that gets people confused; they think they're losing/making money on an FX position that doesn't exist (I've had clients that I've had to talk down multiple times over this exact point). So I prefer to hammer on "use FXCONV" just because it prevents confusion down the road.

 

[BBCWatcher]

The problem is that if you use IDEALPRO it starts tracking PnL on that position, and that gets people confused; they think they're losing/making money on an FX position that doesn't exist (I've had clients that I've had to talk down multiple times over this exact point).

OK, but that’s our annoyance, having to answer the “dumb,” repeated questions. The IB customer’s annoyance is that TWS is more complicated to configure and to use than WebTrader.

I’m going to lean in favor of the IB customer in this contest. If TWS is annoying, OK, no problem: use WebTrader, and ignore the extra line in your statement.

 

[Wishdom]

It's not fair to say that it is an fx position that does not exist.

Assuming vwrd stays the same and fx returns are in my favour: I would have gotten more sgd than what I have put in if I were to sell my vwrd now.

The confusion comes from the fact that you are not *really* holding physical usd in your hands. The dollars are not in your portfolio, but their fx movements will still affect your portfolio returns.

Sent from Ilovennp using GAGT

 

[BBCWatcher]

Assuming vwrd stays the same and fx returns are in my favour: I would have gotten more sgd than what I have put in if I were to sell my vwrd now.

No, that’s different. VWRD is not currency, and its valuation (expressed in Singapore dollars) did change in your example.

....Now we can start to understand why Shiny Things gets so upset about that extra line in IB’s statement. I sympathize, but if somebody prefers the WebTrader user interface, my general reaction is “Eh.” It’s fine, go for it. Just don’t annoy Shiny Things with questions about why there’s an extra, meaningless line in your IB statement, OK? Deal?

 

[Mecisteus]

OK, but that’s our annoyance, having to answer the “dumb,” repeated questions. The IB customer’s annoyance is that TWS is more complicated to configure and to use than WebTrader.

I’m going to lean in favor of the IB customer in this contest. If TWS is annoying, OK, no problem: use WebTrader, and ignore the extra line in your statement.

It is safer to recommend newbies the simplest method that is to use FXCONV as the routing.

Imagine if someone holds a margin account and the person is looking at the wrong window for the currency balances.

https://www.interactivebrokers.com/...toring/fx_portfolio_-_virtual_fx_position.htm

FX Portfolio - Virtual FX Position

The FX Portfolio section displays your FX trading activity in currency pairs, and may also reflect “indirect” FX currency conversions designed to close out a non-base currency balance. This view is helpful for FX Traders and allows tracking of a running P&L and average cost, but DOES NOT reflect your actual cash balance in any currency. To manage actual currency positions, refer to the Market Value - Real FX Balances section of the account window.

If you understand the purpose of the extra FX lines, then by all means choose IDEALPRO as your routing.

Furthermore, IB has a comprehensive articles and guides on how to use their platform. So TWS is not really difficult.

Converting Currency Balances
https://ibkr.info/node/2059

Currency Conversion for Trading Products in a Non-Base Currency [Video]
https://ibkr.info/node/1172

 

[BBCWatcher]

Imagine if someone holds a margin account....

Whoa, I don't have to imagine that because an IB account holder who prefers simplicity, such as WebTrader, won't be opening a margin account either.

 

[HardwareGuy314]

Handling tax

Hi IB Gurus

after providing tax number to IB,
what does one have to do for tax reporting with regards to

1) capital gains (as far as I know, cap gain is not taxed)

2) dividends (not sure, furthermore already subject to US tax)

Just wondering what are all the tax stuff that we have to manually handle.
Thank you in advance!

 

[Wishdom]

No, that’s different. VWRD is not currency, and its valuation (expressed in Singapore dollars) did change in your example.

....Now we can start to understand why Shiny Things gets so upset about that extra line in IB’s statement. I sympathize, but if somebody prefers the WebTrader user interface, my general reaction is “Eh.” It’s fine, go for it. Just don’t annoy Shiny Things with questions about why there’s an extra, meaningless line in your IB statement, OK? Deal?

Well.. I didn't say that vwrd was a currency. And most importantly.. The valuation change was the point I was trying to make... That '' meaningless'' line, is not meaningless at all.

Lastly, I didn't ask a question. So yeah.

Sent from Ilovennp using GAGT

 

[Shiny Things]

Hi IB Gurus

after providing tax number to IB,
what does one have to do for tax reporting with regards to

1) capital gains (as far as I know, cap gain is not taxed)

2) dividends (not sure, furthermore already subject to US tax)

Just wondering what are all the tax stuff that we have to manually handle.
Thank you in advance!

Assuming you're not a professional trader, and that you're a Singaporean resident, and not a US tax resident:
1) Nothing.
2) Nothing.

 

[boiboi123]

Which version of TWS is recommended? Seems like there are 3, TWS Latest, TWS and TWS Beta

 

[Shiny Things]

Which version of TWS is recommended? Seems like there are 3, TWS Latest, TWS and TWS Beta

Latest is usually fine.

 

[wannabelazy]

In the Account Maintenance website, go into Transfer Funds, and set up a deposit. IB will tell you the account number to send your funds to. It's pretty easy once you've done it once.

Hi Shiny, I'm getting ready to fund my account. So this deposit notification will have to be performed each time we wish to do a funds transfer? What happens if one forgets to make the notification and makes a transfer to the Citibank account anyway?

 

[JuniorLion]

Hi Shiny, I'm getting ready to fund my account. So this deposit notification will have to be performed each time we wish to do a funds transfer? What happens if one forgets to make the notification and makes a transfer to the Citibank account anyway?

You only get the Citibank Account Number after you set a deposit notification (and this account number changes every time - it's a virtual account number).

Without it, what account would you transfer to?

 

[BBCWatcher]

You only get the Citibank Account Number after you set a deposit notification (and this account number changes every time - it's a virtual account number).

It’s possible to set up a monthly recurring deposit notice, and that’ll be “sticky.” And if you’re transferring the same amount monthly, that works. But I don’t recommend ad hoc fund transfers using the monthly recurring notice’s details. It’ll probably work fine, but it’s just safer to give IB correct, individual deposit notice(s) for ad hoc transfers.

 

[boiboi123]

Latest is usually fine.

Which version of TWS is recommended? Seems like there are 3, TWS Latest, TWS and TWS Beta

Got it thank you!

 

[little pupsky]

Huh, is that so? The Citibank NA account number they gave me after I set up a deposit notification is the same every time, so much so that I have saved the Citibank account number as a payee in my local ibanking. And there have been times when I didn’t set up any deposits notifications and I simply transferred funds to the saved Citibank payee via ibanking. The funds always arrive at my IBKR account, albeit usually a couple of hours later than if I were to set up a notification first.

You only get the Citibank Account Number after you set a deposit notification (and this account number changes every time - it's a virtual account number).

Without it, what account would you transfer to?

 

[BBCWatcher]

If you want to use IB’s mobile app (tablet, smartphone) then that might be a little friendlier than the desktop/laptop TWS, for those who want to use or who prefer FXCONV.