Interactive Brokers - SGD now available for funding

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Shiny Things

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Sorry if this has been asked and answered before, but this thread has gotten too large to search.

What is the "correct" way for a casual investor to place an order for IWDA on IBKR?

I think a limit order, maybe 1% through the last traded price, is fine. If you're using Google Finance as your "last trade" source, that should be enough to guarantee you a fill.

Ignore IBALGO and stuff like that; that's way way way overcomplicating it.

I don't think it really matters much. "Blind" market orders are fine in liquid markets for long-term investors. However, out of an abundance of caution, you can go look at whatever source of free market data you want then pick a limit price, say, 0.5% above the market price and place your order. That'll prevent the order from getting filled at some weirdly momentarily "crazy" price, as might happen in a reverse "flash crash." But the order will get filled, with high confidence.

I think IBKR already does this in most cases; they generally convert market orders to a limit order 1-5% through the offer, especially if the exchange doesn't natively support market orders.
 

MikeDirnt78

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Hi all,

i really need some help in IBKR ,

i tried to use ACATS from my SCB account, while selecting brokers,

there is

1) Stanchart Securities International, INC
2) Standchart Chartered Securities (North America), INC
3) Standard Investment Chartered,INC

i tried all with my 7 digits Securities trading account.
however it mentioned that
"the account number you have entered does not match the structure supported by the broker selected"

anyone tried to transfer shares from SCB?

much appreciated for any help :(

Those Inc are like the US companies.

I remember someone managed to transfer out. You can try searching for the post and PM the person.
 

ihuazai2

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I’ve done a USD WT to a DBS USD account without converting, it took a couple of hours. I also tried a SGD Giro/ACH to DBS SGD account with the conversion done at IB and it took almost a week.

No incoming fees with Treasures account.

can i check if it's generally faster to select wire withdrawal vs giro/ach withdrawal if withdrawing in sgd?
 

finale1

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Sorry! Can I check... from submitting documents to wiring funds into IB account, what’s the fastest this can be done?

How many days does it take?
 

BBCWatcher

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How many days does it take?
A couple days, probably, but what's the hurry?

On a business/trading day it usually takes an hour or two for FAST transferred funds to land in your IB account, so that's not the slow part. If there's a slow part, it'll be the KYC-related account opening process. But that's pretty quick if you've got adequate or better documentation.

Margin accounts might take longer to set up.
 
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BBCWatcher

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can i check if it's generally faster to select wire withdrawal vs giro/ach withdrawal if withdrawing in sgd?
I might be mistaken, but I don't think you can select ACH for Singapore dollar withdrawals. ACH ("Automated Clearing House") is for U.S. dollar withdrawals into a U.S. bank or U.S. credit union account, and that's roughly equivalent to the GIRO system in Singapore but a different country's system.

But, if I'm wrong, you get one free withdrawal per month, so you can try both. This month, try wire, and next month, try ACH. I don't think the latter will work, but you can try. You should make sure your financial institution doesn't charge a fee that you don't like, such as an inward TT fee.
 

finale1

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What is meant by Margin accounts? I intend to trade futures spreads with high SPAN margin offsets.

So for a normal demo account, I tried putting on a buy A, sell B futures and it takes up 2 sides of full outright margins. But SPAN margin calculations only show exchange will take up just $700 usd margins. If I am doing mostly such trades, should I get a margin account?

Also, I read from previous threads someone mentioned IB Tradestation can link to excel and I can send orders from excel. Is this true?

A couple days, probably, but what's the hurry?

On a business/trading day it usually takes an hour or two for FAST transferred funds to land in your IB account, so that's not the slow part. If there's a slow part, it'll be the KYC-related account opening process. But that's pretty quick if you've got adequate or better documentation.

Margin accounts might take longer to set up.
 

Shiny Things

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What is meant by Margin accounts? I intend to trade futures spreads with high SPAN margin offsets.

A margin account is an account with a margin loan attached to it - that is, you can borrow to buy or sell, as well as using the cash in your account.

Then again, though, if you know what SPAN margin is, I'm assuming you're already pretty comfortable with margin math, so, yeah.

So for a normal demo account, I tried putting on a buy A, sell B futures and it takes up 2 sides of full outright margins. But SPAN margin calculations only show exchange will take up just $700 usd margins. If I am doing mostly such trades, should I get a margin account?

Yeah, probably. That said, it depends a bit what A and B are. I've noticed IBKR's cross-margining between futures is weirdly finicky, even on portfolio margining. For example, and this is one I've run into personally: if I trade Nymex WTI vs Nymex Brent, I get the margin offset you'd expect. But if I trade Nymex WTI vs ICE Brent, because ICE is where the liquidity is in Brent, IBKR slugs me for the full margin on both legs, which dials up the margin requirement by a factor of four or so... even though Nymex Brent and ICE Brent are the same darn thing.

So, my question would probably be: what are A and B? Is there a particular spread you're looking to do?

Also, I read from previous threads someone mentioned IB Tradestation can link to excel and I can send orders from excel. Is this true?

Yeah, I mean, you can, but Excel DDE is famously crappy, and you'd probably get more bang for your programming buck out of using the APIs directly; I've screwed around with the Python API a bit and it's pretty powerful once you wrap your head around it (it's not a simple API!). If you want to try it, here's the link.
 

finale1

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Yeah, probably. That said, it depends a bit what A and B are. I've noticed IBKR's cross-margining between futures is weirdly finicky, even on portfolio margining. For example, and this is one I've run into personally: if I trade Nymex WTI vs Nymex Brent, I get the margin offset you'd expect. But if I trade Nymex WTI vs ICE Brent, because ICE is where the liquidity is in Brent, IBKR slugs me for the full margin on both legs, which dials up the margin requirement by a factor of four or so... even though Nymex Brent and ICE Brent are the same darn thing.

So, my question would probably be: what are A and B? Is there a particular spread you're looking to do?

Nymex WTI and ICE Brent are on different exchange so margin offsets do not apply. Its like posting full outright margins on WTI and Brent on 2 different exchanges respectively.

I am looking at ICE Gasoil - Ice Brent, basically a crack spread with high correlation.
 

finale1

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I am almost completing my application for IB. Do you guys have to submit w-8 Ben form?

It seems I can reach step 5 and can transfer money without having to upload IC copy or the W-8Ben form.
 

Downloaderz

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I'm trying to decide between depositing to my existing global tdameritrade account or to create an account with IB and use them instead.

The only benefit I see with staying with TD is that they have a number of commission-free ETFs available. However, I've just been made aware of the 30% withholding tax on dividends. If I only invest in ETFs that focuses on growth (e.g. SPTM SPEM SPDW) will I be heavily affected by that tax? Or should i be putting the money in irish domiciled ETFs instead using IB?

Funding with TD is also expensive with the wire transfer fees. With IB, since they allow for SGD funding and local bank transfer, there's no additional fees. And from what I've read, conversion from SGD to USD with IB is also at spot rate?

My only concern with IB is the inactivity fee, as I'm only planning to reinvest monthly into ETFs, as well as maybe buy and hold a couple stocks (not every month). I also dont have 100k to avoid that.
 

tangent314

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The only benefit I see with staying with TD is that they have a number of commission-free ETFs available. However, I've just been made aware of the 30% withholding tax on dividends. If I only invest in ETFs that focuses on growth (e.g. SPTM SPEM SPDW) will I be heavily affected by that tax? Or should i be putting the money in irish domiciled ETFs instead using IB?

SPTM is 100% US, last dividend yield is 1.93%, 15% (difference between US and Irish domicile) of that is 0.29%. Compare that against the TER difference between the US and Irish domicile versions of the fund.

Funding with TD is also expensive with the wire transfer fees. With IB, since they allow for SGD funding and local bank transfer, there's no additional fees. And from what I've read, conversion from SGD to USD with IB is also at spot rate?

If you do it during SG trading hours, the bid-ask spread will be less than 0.0001. There is a a fee of US$2 for forex.

My only concern with IB is the inactivity fee, as I'm only planning to reinvest monthly into ETFs, as well as maybe buy and hold a couple stocks (not every month). I also dont have 100k to avoid that.

It's a minimum monthly commission, not an inactivity fee. There's a min commission of US$5 per trade, plus a forex commission of US$2. If those are the only thing you do per month, then you will only be charged an additional US$3 to make it US$10
 

Shiny Things

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Nymex WTI and ICE Brent are on different exchange so margin offsets do not apply. Its like posting full outright margins on WTI and Brent on 2 different exchanges respectively.

I am looking at ICE Gasoil - Ice Brent, basically a crack spread with high correlation.

Yeah, I was being a bit optimistic thinking that IB would magically allow me to cross-margin ICE Brent and Nymex WTI... certainly the exchange clearing houses wouldn’t be too impressed if IB was all like “but he’s long on the other exchange so we’re just gonna post you partial margin, have fun!”.

My laptop’s in the shop so I can’t test this on TWS right now, but I’d be a bit surprised if IB didn’t give you at least some margin offset on that particular pair. When I get it back I’ll do some margin simulations on my account (I’ve got margin enabled) and see if it offsets. What’s the IB futures code for the gasoil contract?
 

JuniorLion

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I read that amounts of cash exceeding $10,000 in IB would get some interest (IB pays you). But I have yet to see any interest credited after 3 months.

Anyone knows when interest will be paid?
 

BBCWatcher

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I read that amounts of cash exceeding $10,000 in IB would get some interest (IB pays you).
You must also have a total account net asset value (NAV) of US$100,000 or more to qualify, and the interest is paid only on the portion of your U.S. dollar cash balance above US$10,000. Details here.
 

peipei1

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I got an email from IBK compliance team to send a copy of my bank statement? Is it real or scam? Should i send in my full bank balances? :(
 

MikeDirnt78

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I got an email from IBK compliance team to send a copy of my bank statement? Is it real or scam? Should i send in my full bank balances? :(

How is IB going to siphon away your money?

If you are opening a new account, they are probably interested in your name and country of residence as proof.
 

peipei1

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How is IB going to siphon away your money?

If you are opening a new account, they are probably interested in your name and country of residence as proof.

I oreadi using IB for months le, is this compliance check common when my bank proof was submitted on account opening?
 

BBCWatcher

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I oreadi using IB for months le, is this compliance check common when my bank proof was submitted on account opening?
Both random and non-random compliance checks are possible. However, please make sure you're only communicating with IB using secure channels that they can monitor. That includes, as a notable example, the secure mailbox service they provide within their online account management, where you can upload scanned documents.
 
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