Interactive Brokers - SGD now available for funding

[sAVaGEmP5]

Dun understand why do they have such a rule that Singaporean using their platform cannot trade in SGX?

So they wont spoil market. If we all trade thru IB low comms platform, then local brokerage can close shop. Also partly scare the oversea brokers run away.

 

[sAVaGEmP5]

I'm also looking around for banks with lowest TT fee, so Citi is the best?

Can confirm that Citi quoted fee for "Online TT to overseas bank" of S$30 can be used to remit to IB?

If so, plus free inward remittance, then this combo is the bestest.

Thanks so much for sharing. Please update us here if you managed to remit.

IMO, the only benefit is what Shiny Things said. Using spot rate to trade back n forth, which means I can stop hedging my USD Foreign currency exposure only to the amt of open positions

As for the TT, I think can close down my Foreign Currency current acct and dont need to keep USD in it. But that doesnt mean i can save on TT. The bank (DBS) doesnt care if i remit in USD or SGD, because the FX conversion is OTC and their rates are "rare & exotic" (they already profit from you 1 time becos of the large spread)

 

[kritphine]

They won't convert it to USD - they'll post an actual SGD amount to your account. The best thing, though: once the SGD's in your account, you can convert between SGD and USD at spot. Like, actual spot. Like interbank spot. Even the Change Alley dudes can't beat that.

Yeah, I realized that can be done from IB tutorial video. That's awesome, nothing can beat the cost effectiveness of this method.

As for TT, Citi is the cheapest and fastest, but maintaining S$5k idle there may be a deal breaker for some.

I think for DBS and some other local banks, online TT in SGD is slightly cheaper.

 

[dunkmycar]

I'm also looking around for banks with lowest TT fee, so Citi is the best?

Can confirm that Citi quoted fee for "Online TT to overseas bank" of S$30 can be used to remit to IB?

If so, plus free inward remittance, then this combo is the bestest.

Thanks so much for sharing. Please update us here if you managed to remit.

Yup it's $30 for TT via citibank, which is the lowest in the market...hmm..if able to remit in SGD then that's definitely better, can save on this $30 + exchange rate!

 

[ABuNeNe]

Sorry don't really understand.

So they wont spoil market. If we all trade thru IB low comms platform, then local brokerage can close shop.

If IB can provide lower comms and still earn profit, can't local brokerage offer the same?

Also partly scare the oversea brokers run away.

How does trading thru IB on Singapore equities market affect oversea brokers?

 

[Shiny Things]

If IB can provide lower comms and still earn profit, can't local brokerage offer the same?

Not necessarily.

IB has - from what I understand - extremely efficient IT systems and low overheads, which means they can pass the savings on to you.

I wouldn't be surprised if some of the local brokers can't match IB's rates, just because they have to support their creaky old systems and pay their hordes of useless stockbrokers-slash-salesmen.

 

[Futureskid]

Not necessarily.

IB has - from what I understand - extremely efficient IT systems and low overheads, which means they can pass the savings on to you.

I wouldn't be surprised if some of the local brokers can't match IB's rates, just because they have to support their creaky old systems and pay their hordes of useless stockbrokers-slash-salesmen.

U can always find places which can get cheaper and cheaper, but ultimately choosing a firm should not look at cost alone, other factors such as systems, support, brokers assistance(make sure you understand their accent), integrity of business, funds safety etc are important as well.
Depending on individuals, one factor maybe more important than the other.

 

[ABuNeNe]

Not necessarily.

IB has - from what I understand - extremely efficient IT systems and low overheads, which means they can pass the savings on to you.

I wouldn't be surprised if some of the local brokers can't match IB's rates, just because they have to support their creaky old systems and pay their hordes of useless stockbrokers-slash-salesmen.

My point is IB as a brokerage firm is earning from comms from trades, so why do they need to care about other brokerage firms?

If a local brokerage cannot match IB comms because of their inefficiencies then they probably would need to do something about it.

 

[sAVaGEmP5]

My point is IB as a brokerage firm is earning from comms from trades, so why do they need to care about other brokerage firms?

If a local brokerage cannot match IB comms because of their inefficiencies then they probably would need to do something about it.

i didnt really read thru their investors report for IB, but i know their daily turnover shld be in the billions, perhaps a few HFT and hedge fund funneling trades thru them... hence they can offer such low rates.

Ever wonder why SG brokers are charging $20++ per trade ? Think abt the day if it charges 10c per trade, they need to "let go" how many ppl ?

 

[ABuNeNe]

I'm still hesitating to sign up coz of the deposit and unable to trade in Singapore stock market.

Is there any other broker that provide API access?

 

[Wolfnet]

I'm still hesitating to sign up coz of the deposit and unable to trade in Singapore stock market.

Is there any other broker that provide API access?

IB is probably the biggest non-Investment bank retail broker in the world. Why we cannot trade SGX stocks through them I do not know (most likely some regulation thingy to protect the local SG Brokers).

The deposit is high and the signing up process is a nightmare but it shows that IB only want people willing to commit properly and not put in $100 and expect everything handed to them on a platter.

Not to mention you can take the money out and still trade so long as you have $2000-3000 in the account (cannot remember). What you get is a overly complicated but very powerful platform with **** charting, access to tons of markets (real ones and not CFDs!!!), reasonably priced live data and the ability to export/stream data and even trade via Microsoft Excel at no cost.

I am not sure which other broker provides API but you will most likely have to pay a monthly fee.

If you want to trade SGX stocks use StanChart. But imo dun restrict yourself to SGX. There are tons of better stocks to buy out there

 

[DesmondLZW]

I have been using IB for over a year now and have to admit their services and softwares are topnotch, along with their support. I don't trade singapore stocks but US stocks rather as having over 8,000+ stocks to do my technical analysis on gives me much better picks than Singapore stocks, but at the same time it gives me less opportunities to go through their financial statements and understand them more in-depth.

I would recommend IB as a broker for US stocks, fantastic and easy to sign-up and use. Deposit can be quite high if you're above a certain age, think above 25 is US$10,000.

 

[Shiny Things]

I would recommend IB as a broker for US stocks, fantastic and easy to sign-up and use. Deposit can be quite high if you're above a certain age, think above 25 is US$10,000.

Hey, I recognise you, Desmond. Aren't you the guy who was in here a couple of years ago soliciting investors for your "gold investment fund" which we told you was doomed to blow up? What happened to that?

 

[Yxy]

well I finally transferred some $ from my Citibank acct to IB
total TT fees was only $30, and IB converted my SGD to USD at a rate of 1.23756, which is pretty nice.
strangely, i have trading permissions for the SGX as well, lol.

 

[elbib00]

Interested to know more.

Does this mean we can save on the currency exchange spread and only incur the TT fees?

 

[Yxy]

actually, I just realised that IB still stores my deposit in SGD, but displays it in USD.
this means that it applies whatever the forex rate for USD/USD is at the time to your account.
for instance, I "earned" around USD$17 in my account balance just because USD/SGD increased a few pips from the time the account was funded.

 

[supratentorium]

actually, I just realised that IB still stores my deposit in SGD, but displays it in USD.
this means that it applies whatever the forex rate for USD/USD is at the time to your account.
for instance, I "earned" around USD$17 in my account balance just because USD/SGD increased a few pips from the time the account was funded.

Yar, you have to sell off your SGD for USD if you want to trade using USD. There's an extra cost for trading forex if you are. Whatever non USD base currencies you trade, the profits and losses are in that currency and you have to pay them a commission to convert it back . This is unlike other brokers.

Thanks for posting. I will remit SGD directly in futre.

 

[elbib00]

Let's say I TT $10k to IB.

IB will always reflect SGD10k worth of funds right? Not the initial (SGD10k x exchange rate) worth of funds.

Paiseh for the basic qustions...

 

[Yxy]

Let's say I transferred 25,000 in SGD.
When it reaches IB, my account shows 20,199 USD (base currency selected)
2 hours later, the USD/SGD rate changed a bit and my account now shows 20,216 USD.
Makes sense?

Let's say I TT $10k to IB.

IB will always reflect SGD10k worth of funds right? Not the initial (SGD10k x exchange rate) worth of funds.

Paiseh for the basic qustions...

 

[elbib00]

Got it. Thanks!