Interactive Brokers - SGD now available for funding

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Han Shot First

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Only for portfolio size of 100K USD and above and for cash above 10K USD. So, lets say you have 90K Stocks and 11K cash, you will be paid interest only on 1K of cash.

Just to confirm. Is interest paid on SGD deposit balance in IBKR or only for USD balance?

If yes, then any idea what is the interest rate for SGD cash? I think I saw somewhere that it is 1.41% pa for USD cash.
 

BBCWatcher

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Is it free (and easy) to wire funds from Citibank Singapore USD checking account to Interactive brokers? Anyone tried this before?
No, it’s not free. Yes, somebody tried Citibank Global Transfer directly into IB, and it doesn’t seem to work, unfortunately.

Don’t land U.S. dollars in Singapore, Minamikaze.
 

BBCWatcher

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Revhappy, I understand what you mean, but I don’t understand why you’re using the SGD margin interest rate at IB for these purposes, except perhaps as a guesstimate. If you’re a resident of Singapore IB doesn’t let you buy anything denominated in Singapore dollars (as far as I know), so the margin interest rate at IB is going to be in some other currency, such as U.S. dollars.

You can borrow on margin in a foreign currency, but you take some currency risk on that margin if your perspective is Singapore dollars. I don’t think you can really use IB’s SGD margin interest rate for comparison since that’s the current, “risk free” margin interest rate in that currency. But you’re not borrowing in that currency, not at IB.

I think you just decide whether you want to speculate with margin at IB (in some foreign currency or currencies), and you make the same but separate decision at Maybank KE for Singapore dollar margin.

Another approach if you want to make amplified bets is to use the 2X and 3X leveraged ETFs that are prepackaged for those sorts of bets, if they match, or to use the futures and options markets. I prefer dull, boring, long-term investing that is not trying to beat the markets.
 
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MikeDirnt78

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Yeah it doesn't make sense to take SGD loan to buy non SGD assets. Unless if you are really desperate for SGD cash. IB allows you to withdraw SGD as a loan if you have sufficient FCY denominated assets.

If you buy USD assets and want to hedge against USD depreciation, then it makes sense to take USD loan.
 

RangerSnake

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Non-U.S. decedents would also have an estate subject to the U.S. estate tax in that event. Cash, in any/every currency, held at a U.S. broker such as Interactive Brokers counts toward a non-U.S. decedents single US$60,000 exemption, meaning it is U.S. estate taxable.

The next limit is SIPC coverage, which has a cap of US$250,000 for cash at a SIPC insured broker.

If you're looking for a short-term parking place for cash at IB that is both safe and not subject to the U.S. estate tax, I recommend you take a look at U.S. Treasuries. T-bills are available in maturities as short as 4 weeks. You can ladder them in one week intervals if you want to park a large amount of cash and earn some interest.

These tbills can be bought through IB? Any website that I can browse to learn more about them? Thanks
 

RangerSnake

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In IB's website under pricing, it is stated that the any first withdrawal of funds in a month is free, subsequent withdrawals are charged as per table, but the table under Asia Pacific does not include USD. Anyone knows what's the charge for subsequent USD withdrawals?
 

BBCWatcher

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In IB's website under pricing, it is stated that the any first withdrawal of funds in a month is free, subsequent withdrawals are charged as per table, but the table under Asia Pacific does not include USD. Anyone knows what's the charge for subsequent USD withdrawals?
The table under Asia-Pacific is a table of currencies in that region. Look right above, under America, to find the U.S. dollar charges.

Please don’t transfer U.S. dollars to a bank outside the U.S. dollar currency zone. It’s expensive and unsafe (no deposit insurance). But if you insist, it’ll cost US$10 per wire after the first monthly withdrawal (of any kind). It costs US$1 for second and subsequent withdrawals of U.S. dollars to a U.S. bank or U.S. credit union account (ACH transfer).

These charges do not include any charges that your bank and/or its intermediaries (if applicable) charge. To avoid the risk of a bank charge you should use a bank that doesn’t charge incoming telegraphic transfer fees. In Singapore, Citibank, CIMB, and BOC are among the banks that don’t.
 

RangerSnake

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The table under Asia-Pacific is a table of currencies in that region. Look right above, under America, to find the U.S. dollar charges.

Please don’t transfer U.S. dollars to a bank outside the U.S. dollar currency zone. It’s expensive and unsafe (no deposit insurance). But if you insist, it’ll cost US$10 per wire after the first monthly withdrawal (of any kind). It costs US$1 for second and subsequent withdrawals of U.S. dollars to a U.S. bank or U.S. credit union account (ACH transfer).

These charges do not include any charges that your bank and/or its intermediaries (if applicable) charge. To avoid the risk of a bank charge you should use a bank that doesn’t charge incoming telegraphic transfer fees. In Singapore, Citibank, CIMB, and BOC are among the banks that don’t.

Thanks BBC for the clarification
 

revhappy

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I have done 1 per month SGD withdrawal for free into SCB bonus saver account. Free from both IB as well as SCB.

Sent from Xiaomi REDMI NOTE 4 using GAGT
 

BBCWatcher

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I have done 1 per month SGD withdrawal for free into SCB bonus saver account. Free from both IB as well as SCB.
Yes, apparently IB is using the Singapore domestic FAST and/or GIRO facilities when you’re transferring Singapore dollars from IB. IB has a custodial SGD account at Citibank Singapore. They can receive Singapore dollar funds there via FAST/GIRO, so presumably it’s the same path in reverse when you’re making a SGD withdrawal.

All other currencies are in/out via international wires.
 

gameterminator

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Dear IB user,

I just set up my IB account and I am a Singaporean residing in HK. Regarding the deposit of funds into IBKR, we can do FAST to Citibank SG and there is no fee incurred?

As there is no FAST in HK, is there any cheapest fee charged by the banks in HK?

Thanks
 

BBCWatcher

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Regarding the deposit of funds into IBKR, we can do FAST to Citibank SG and there is no fee incurred?
Correct, either FAST or GIRO of Singapore dollars into IB’s custodial account a Citibank Singapore. Log into your IB’s Account Management interface, then schedule a fund transfer inbound to IB. IB will provide you with the necessary account details that are unique to you.

As there is no FAST in HK, is there any cheapest fee charged by the banks in HK?
You should be able to make a local transfer of Hong Kong dollars into IB’s comparable Hong Kong dollar custodial account in Hong Kong, and that should be at domestic fund transfer rates.
 

gameterminator

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Correct, either FAST or GIRO of Singapore dollars into IB’s custodial account a Citibank Singapore. Log into your IB’s Account Management interface, then schedule a fund transfer inbound to IB. IB will provide you with the necessary account details that are unique to you.


You should be able to make a local transfer of Hong Kong dollars into IB’s comparable Hong Kong dollar custodial account in Hong Kong, and that should be at domestic fund transfer rates.

Dear BBCW,

In Singapore context, there is no fee incurred for inwards and outwards of fund into IB. But i understand that there might be fees charged by respective banks for TT to Citibank HK (account for IB HK). Just wondering if any guys know which banks charge the lowest fee?Thanks alot.
 

BBCWatcher

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But i understand that there might be fees charged by respective banks for TT to Citibank HK (account for IB HK).
No, I believe your understanding is incorrect.

If you’re transferring Hong Kong dollars within Hong Kong, then that’s generally free of charge. Use the ECG (analog to GIRO) or CHATS (analog to FAST) domestic fund transfer system, Hong Kong dollars, and initiated using Internet banking. I don’t think there’s any local bank in Hong Kong that charges a fee for a domestic fund transfer through those systems. Hang Seng certainly doesn’t for personal accounts, to pick an example.
 

shanshi

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two ib accounts in both sg and usa

I used to work in both sg and usa, so I have two ib accounts with bank accounts in both ocbc and chase. now I am leaving sg, should I merge them all to usd for convenience in the future? almost all cashes in the two accounts. Any suggestion? Thanks.

if I keep ib sg account with ocbc and sgd, could I purchase all usa stocks and index, the same as using my ib usa accounts with chase and usd? Thanks.
 

BBCWatcher

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I used to work in both sg and usa, so I have two ib accounts with bank accounts in both ocbc and chase. now I am leaving sg, should I merge them all to usd for convenience in the future? almost all cashes in the two accounts. Any suggestion?
It's up to you. You might want to hang onto a bank account in Singapore for a little while longer, but OCBC isn't a great bank to do that. Try opening a StarSaver account at CIMB before you go, and get their rather nice (by Singapore standards) ATM card. Once the account is open (minimum $1,000) there's no minimum balance required, so you can keep it open if you like. Then if you've got a tax refund, tax payment, or some random bit of residual Singapore business to take care of, you've got some ability to make that happen.

if I keep ib sg account with ocbc and sgd, could I purchase all usa stocks and index, the same as using my ib usa accounts with chase and usd? Thanks.
I don't know why you have two Interactive Brokers accounts, actually. You don't need two, and you really ought to consolidate them to avoid double monthly minimum commission charges.

IB isn't necessarily the best brokerage choice if you're going to be living in the U.S.
 

BBCWatcher

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There is a 30% withholding tax on interest earned right?
No. If a non-U.S. person directly holds U.S. Treasuries -- purchased through a broker or (if eligible) via TreasuryDirect -- then those U.S. Treasuries are NOT subject to any U.S. tax. No capital gains tax, no interest tax, no estate tax.

U.S. Treasury funds are slightly different. If U.S. domiciled, they are subject to the U.S. estate tax. However, there are non-U.S. domiciled U.S. Treasury funds. Blackrock iShares has at least one such fund domiciled in Ireland and traded on the London Stock Exchange.
 

chewchun

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Hi guys, any idea why my "Cash Available for Withdrawal" is 0 even though I have over 2k SGD in my account. In fact, both my account have SGD and USD. Its been a while since i made any withdrawal so am I missing any new updates from IB?
PS: its a cash account.
 
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