Interactive Brokers (IBKR)

[crystalnox]

Hi yes, had the IBKR account last year so that should be with Interactive Brokers LLC. Just wondering if we will be forced to convert to Interactive Brokers Singapore Pte. Ltd as Singaporeans. This part I am unsure of and I have not received any notifications from IBKR yet.

Not yet but expected to. They forced Australian residents to move over to their Aussie entity when they opened there.

 

[BBCWatcher]

Just wondering if we will be forced to convert to Interactive Brokers Singapore Pte. Ltd as Singaporeans.

No, you won't be forced to convert as a Singaporean. (Your citizenship has nothing to do with it.) However, I agree with Crystalnox. It's likely at some point you'll be forced to convert as a resident of Singapore, assuming you want to continue to do business with an Interactive Brokers entity.

 

[pokartix]

Regards Custodian - ABN AMRO Clearing Bank N.V. Singapore

I decided to check with IB support today, since there're chatters from the investing community that IB-SG does not have SIPC protection.

As I have an account with IB-SG, I thought I find it out directly from them. Just want to get more clarity.

"Account protection offered by third party (e.g. SIPC/ICF) is not available for IB-SG. Please be advised that all Singapore assets are registered under IBKR's name at one omnibus account with our custodian, ABN AMRO Clearing Bank N.V. Singapore. Hence, underlying clients do not have a unique CDP account number for themselves."

When I probed further if ABN AMRO Clearing Bank N.V. Singapore branch is the clearing broker.

IB replied that "it's our custodian"

Honestly, I don't know why don't they name the custodian in their Client Agreement up front and make it convenient. It's a general piece of document.

For example, TD Ameritrade Singapore makes very clearly in the Clearing Firm Disclosures that their Clearing Firm is TD Ameritrade Clearing, Inc in the US, which is a member of SIPC. "TD Ameritrade Clearing, Inc. maintains insurance coverage to protect your securities from any form of casualty loss."

Also, IB said "If you are looking for account protection and do not want to trade in SGX stocks then you can invest in IB-LLC US."

OK, since ABN AMRO Clearing Bank N.V. Singapore is the custodian, and financial products such as shares are not covered by our SDIC under the Deposit Insurance Scheme...

In the case of insolvency of IB-SG, can we trust to get our stocks and cash back? Do you think MAS will step in? Any thoughts?

***

"A custodian is a financial institution that holds customers' securities for safekeeping so as to minimize the risk of their theft or loss." - Investopedia

 

[crystalnox]

I decided to check with IB support today, since there're chatters from the investing community that IB-SG does not have SIPC protection.

As I have an account with IB-SG, I thought I find it out directly from them. Just want to get more clarity.

"Account protection offered by third party (e.g. SIPC/ICF) is not available for IB-SG. Please be advised that all Singapore assets are registered under IBKR's name at one omnibus account with our custodian, ABN AMRO Clearing Bank N.V. Singapore. Hence, underlying clients do not have a unique CDP account number for themselves."

When I probed further if ABN AMRO Clearing Bank N.V. Singapore branch is the clearing broker.

IB replied that "it's our custodian"

Honestly, I don't know why don't they name the custodian in their Client Agreement up front and make it convenient. It's a general piece of document.

For example, TD Ameritrade Singapore makes very clearly in the Clearing Firm Disclosures that their Clearing Firm is TD Ameritrade Clearing, Inc in the US, which is a member of SIPC. "TD Ameritrade Clearing, Inc. maintains insurance coverage to protect your securities from any form of casualty loss."

Also, IB said "If you are looking for account protection and do not want to trade in SGX stocks then you can invest in IB-LLC US."

OK, since ABN AMRO Clearing Bank N.V. Singapore is the custodian, and financial products such as shares are not covered by our SDIC under the Deposit Insurance Scheme...

In the case of insolvency of IB-SG, can we trust to get our stocks and cash back? Do you think MAS will step in? Any thoughts?

***

"A custodian is a financial institution that holds customers' securities for safekeeping so as to minimize the risk of their theft or loss." - Investopedia

Please don't keep large amounts cash in brokerage accounts, they generally aren't protected with any non-US broker.

MAS/SGX is not going to be able to do much outside of SGX stocks, this is probably the same for any other local broker you might use to hold foreign stocks. Just read up on this press release from MAS when MF Global went down.

We understand that the provisional liquidators are taking steps to recall customers’ monies and assets that are held in overseas jurisdictions. The return of such monies and assets will be subject to relevant arrangements in those jurisdictions, including the positions taken by the regulators and insolvency administrators of the MF Global entities in those jurisdictions.

 

[d5dude]

Please don't keep large amounts cash in brokerage accounts, they generally aren't protected with any non-US broker.

MAS/SGX is not going to be able to do much outside of SGX stocks, this is probably the same for any other local broker you might use to hold foreign stocks. Just read up on this press release from MAS when MF Global went down.

But what about stocks since there is no more SIPC?

 

[porean101]

Hi all,

I've just opened an IBKR account this week. It's opened under Interactive Brokers Singapore Pte. Ltd.

I've just bought some D05 stocks so I guess we are able to trade in SGX now?

Should I be concerned about having no SIPC protection that people are talking about?

 

[wutawa]

Hi all,

I've just opened an IBKR account this week. It's opened under Interactive Brokers Singapore Pte. Ltd.

I've just bought some D05 stocks so I guess we are able to trade in SGX now?

Should I be concerned about having no SIPC protection that people are talking about?

Nice, thanks for sharing. Do share if there is U$10 monthly activity fee. Thanks.

 

[reddevil0728]

Nice, thanks for sharing. Do share if there is U$10 monthly activity fee. Thanks.

why wouldn't there be? unless commission is more than $10

 

[wutawa]

why wouldn't there be? unless commission is more than $10

Can provide link about it?

 

[reddevil0728]

Can provide link about it?

The standard interactive brokers page? No different what

 

[assiak71]

Can provide link about it?

A few days ago its on ibkr sg website but now error 404

https://www.interactivebrokers.com.sg/en/index.php?f=46387

Under acc minimums

 

[reddevil0728]

https://www.interactivebrokers.com.hk/en/index.php?f=45303

can see the overseas version also.

 

[pokartix]

Hi all,

I've just opened an IBKR account this week. It's opened under Interactive Brokers Singapore Pte. Ltd.

I've just bought some D05 stocks so I guess we are able to trade in SGX now?

Should I be concerned about having no SIPC protection that people are talking about?

If you're just trading Singapore stocks, MAS will be able to step in. I'd think you don't need to be concerned about having no SIPC protection (seniors, please correct me if I'm wrong).

SIPC is a non-profit organisation based in US, protecting investors cash and securities.*See below extract.

As crystalnox mentioned based on MF Global case, MAS/SGX cannot do much, even if you use a local broker, as long as it's securities other than SG stocks.

I'd think some people will still prefer a broker with a physical presence in SG. In the press release, "MAS Reiterates: Safeguarding interests of investors who have dealings with MF Global Singapore Pte Limited is a priority", so I think something will still be done.

I guess, just that how long will that take would be something to think about. For MF Global clients, it took 5 years (according to The Straits Times: "MF Global clients to get funds back", Mar 8, 2016]

Extracted from SIPC's website:

"SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. Most customers of failed brokerage firms are protected when assets are missing from customer accounts. There is no requirement that a customer reside in or be a citizen of the United States. A non-U.S. citizen with an account at a brokerage firm that is a member of SIPC is treated the same as a resident or citizen of the United States with an account at a SIPC member brokerage firm."

You can google for their website for more info.

So for example, TD Ameritrade Clearing LLC & IB-LLC US are members of SIPC.

 

[wutawa]

A few days ago its on ibkr sg website but now error 404

https://www.interactivebrokers.com.sg/en/index.php?f=46387

Under acc minimums

Thanks, it helps.

 

[Popcorn Monster]

Anyone know that if i dont have any open positions in IBKR, and decided to shift all my funds out of IBKR and use another platform instead. Do i still be charged with USD10 monthly fees, or i have to terminate the account in order not to be charged with the monthly fees?

 

[icoolboy123]

How do we even know if our account is under IBKR US or IBKR SG (which affects whether we are SIPC insured)?

 

[reddevil0728]

How do we even know if our account is under IBKR US or IBKR SG (which affects whether we are SIPC insured)?

Generate an activity statement and see the entity at the top

 

[crystalnox]

Anyone know that if i dont have any open positions in IBKR, and decided to shift all my funds out of IBKR and use another platform instead. Do i still be charged with USD10 monthly fees, or i have to terminate the account in order not to be charged with the monthly fees?

https://ibkr.info/node/314

 

[fyeebiyd]

Borrowing this thread to ask.

For those who are using IBKR, where did you go to learn about how to use the desktop app?

I just set up the account with them and frankly speaking, I still can't figure out a few stuff. Like for instance, I tried to look for the ticker CSPX, and I saw 2 different ones which when I go into both, they don't seem to be that ETF that I am looking for to buy from London Stock Exchange.

 

[reddevil0728]

Borrowing this thread to ask.

For those who are using IBKR, where did you go to learn about how to use the desktop app?

I just set up the account with them and frankly speaking, I still can't figure out a few stuff. Like for instance, I tried to look for the ticker CSPX, and I saw 2 different ones which when I go into both, they don't seem to be that ETF that I am looking for to buy from London Stock Exchange.

For a start maybe use the mobile app?