Interactive Brokers - SGD now available for funding

[winguy]

Hi,

This is the first time I've heard of Interactive Brokers (pardon my ignorance). I have several questions:

1) Is opening an account all done through online only?

2)

Is it 1 account to access several stock markets, or multiple accounts? Because in the account opening screenshot shown, it asks which market you want to trade stocks in. Does the selection matter? Or is it 1 account for 1 market only?

3) Commissions
I see Cost Plus and Flat Rate commissions, which one would it be if we (Singaporeans) open an account?

4) I understand from this thread that we can now TT in SGD. Some people mentioned that IB uses spot rate for USD (hence no bid-ask fx conversion loss?). Is this also true for other currencies like EUR, GBP, HKD, etc?

5) For dividends in various currencies, how are they added to your total balance? For example if your funding is in SGD, but you receive USD dividend, are they converted to SGD at the spot rate then?
Or is the cash balance actually compartmentalized into different currencies? E.g. you have SGD10000 + USD100 (after you receive a USD100 dividend).

6) Other than commissions, what other fees are there?
Required Minimums
From the above link, there is a minimum monthly activity fee of USD 10 (or non-USD equivalent). What happens if you don't meet this requirement for a particular month or several months?
E.g. your commissions for that month are only USD9.99. They will charge you additional USD10 for that month? Or is it additional USD0.01?

If you only have equity holdings (no cash), but did not meet the USD10 minimum activity fee, how do they charge you? sell of your equities?

7) Anyone got joint account with your spouse? Any advantage compared to individual account? If you are Single and having individual account currently, can you convert it to joint account later when you are married?

8) Is it possible to transfer holdings into and out of IB from/to another broker? Any costs for that?

Thats it for now. Thanks!

-Edit-
Due to the minimum activity fee, it seems like IB is more for frequent traders?

 

[sAVaGEmP5]

Hi,

This is the first time I've heard of Interactive Brokers (pardon my ignorance). I have several questions:

1) Is opening an account all done through online only?

2)

Is it 1 account to access several stock markets, or multiple accounts? Because in the account opening screenshot shown, it asks which market you want to trade stocks in. Does the selection matter? Or is it 1 account for 1 market only?

3) Commissions
I see Cost Plus and Flat Rate commissions, which one would it be if we (Singaporeans) open an account?

4) I understand from this thread that we can now TT in SGD. Some people mentioned that IB uses spot rate for USD (hence no bid-ask fx conversion loss?). Is this also true for other currencies like EUR, GBP, HKD, etc?

5) For dividends in various currencies, how are they added to your total balance? For example if your funding is in SGD, but you receive USD dividend, are they converted to SGD at the spot rate then?
Or is the cash balance actually compartmentalized into different currencies? E.g. you have SGD10000 + USD100 (after you receive a USD100 dividend).

6) Other than commissions, what other fees are there?
Required Minimums
From the above link, there is a minimum monthly activity fee of USD 10 (or non-USD equivalent). What happens if you don't meet this requirement for a particular month or several months?
E.g. your commissions for that month are only USD9.99. They will charge you additional USD10 for that month? Or is it additional USD0.01?

If you only have equity holdings (no cash), but did not meet the USD10 minimum activity fee, how do they charge you? sell of your equities?

7) Anyone got joint account with your spouse? Any advantage compared to individual account? If you are Single and having individual account currently, can you convert it to joint account later when you are married?

8) Is it possible to transfer holdings into and out of IB from/to another broker? Any costs for that?

Thats it for now. Thanks!

-Edit-
Due to the minimum activity fee, it seems like IB is more for frequent traders?

1) Yes

2) 1 acct several market. The other types of accounts are mainly institutional.

3) U can choose... doesnt matter SG or not. Cost Plus is like 50c per 100 share trade. Flat plus is fixed $x for any type of trade limited at X shares. If u go in and out a few million shares a day maybe flat plus got cost saving.

4) Yep.. spot

5) Not sure my guess is u receive in the native currency. It is then up to u when u want to convert by going thru their FX spot market.

6) Market Data, think $10. Another $10 is for commionsions u didnt use /mth. If u trade up to $5 worth of comms, then u pay only $5, no matter what min $10.. If no cash can hv negative cash ? Then start deduct interest ?

7) ?? dk why the trouble

8) This is a US brokerage qns. better ask them

 

[winguy]

thanks for your reply sAVaGEmP5 too bad IB is not suitable for small fry like me who transact little

 

[ralliart_ray]

U mean now tt with DBS no need to fill up form OTC ?

Nope, just trigger online will do.

 

[gzb924]

I'm in the process of application

I'm in the process of application. I selected USD and US market.
1. which method is better, i can remit USD from DBS, or remit SGD direct and use IB forex to convert SGD into USD later. is IB forex rate surely better than DBS rate ?
2. i still don't understand spotrate. it's good for short term transactions, but what if I hold a position for 3 years, then I must think of the exhange rate of USD vs SGD after i close the position after 3 years.
any advise, tks in advance.

 

[supratentorium]

I'm in the process of application. I selected USD and US market.
1. which method is better, i can remit USD from DBS, or remit SGD direct and use IB forex to convert SGD into USD later. is IB forex rate surely better than DBS rate ?
2. i still don't understand spotrate. it's good for short term transactions, but what if I hold a position for 3 years, then I must think of the exchange rate of USD vs SGD after i close the position after 3 years.
any advise, tks in advance.

1. The spread is only 1.5 pips on the USD/SGD which i checked on my IB platform. You have to pay 0.2 pip commission or minimum 2.50 USD for each transaction. Compare that with the bank's spread. The former wins hands down.

2. Just go to a weekly USD/SGD chart and look at the volatility and swings over a period of 3 years to get an idea. You don't have to convert everything to USD. A portion of my trading capital remains in SGD in Singapore. I put it aside as part of my total trading capital.

 

[neanea]

Hi what is the reason you want to open account with IB rather than a broker in SG?

 

[pandasr]

Note: I have not tried this but you can enquire about the possibility of MEPS service.

Here is a link to DBS's version:
Local Funds Transfer (MEPS)

Has a field for you to enter additional details too. Alternatively, wire transfer to a local bank is still possible. Just that you have to head down to a branch to do it.

 

[klarklar]

having trouble funding my account using DBS i-banking,

the "send money overseas" link doesn't work because the account provided by IB is located in singapore.

help anyone?

I called up the bank and was told we can deposit funds by writing a cheque since it is a Singapore bank account. Has anyone tried it?

 

[SpinTop]

Oh that's nice, now that IB can wire to their Citibank Spore account - local transfer.
Previously, they only have Citibank HK.

 

[klarklar]

hey guys,

i sacrificed myself and made a normal interbank transfer to IB's SGD account based here, and it made it!

therefore transfers are actually FOC - transfer in SGD for no charge and subsequently convert it at spot on IDEAL unless you're worried abt FX exposure

In your interbank transfer, can you state information like your own IB account number and name? Without that, there is no way Citibank can tell IB which account to send to.

 

[3dfxplayer]

Hi what is the reason you want to open account with IB rather than a broker in SG?

Why use an SG broker at all? They cost so much more and you dont get any benefits from using one.

Its a no-brainer.

 

[wcy888]

Hi Randomswing,

May I ask if the Interactive Brokers account given to you for funds transfer is :

Citibank N.A
Temasek Avenue, Centennial Tower #16-00, Singapore 03910, Singapore
Beneficiary SWIFT BIC Code: CITISGSG
Beneficiary Bank Account Name: Interactive Brokers LLC.
Beneficiary Bank Account Number: 0850832021

I have setup the TT payee with above info in Citibank Online but when I tried to key in the transfer amt, it doesnt have SGD dollars in the currency drop down list.
Does anyone has this problem ? Does it mean that the above acct is in USD and I can only transfer USD in the TT ?

 

[h.y.o.m]

Hi Randomswing,

May I ask if the Interactive Brokers account given to you for funds transfer is :

Citibank N.A
Temasek Avenue, Centennial Tower #16-00, Singapore 03910, Singapore
Beneficiary SWIFT BIC Code: CITISGSG
Beneficiary Bank Account Name: Interactive Brokers LLC.
Beneficiary Bank Account Number: 0850832021

I have setup the TT payee with above info in Citibank Online but when I tried to key in the transfer amt, it doesnt have SGD dollars in the currency drop down list.
Does anyone has this problem ? Does it mean that the above acct is in USD and I can only transfer USD in the TT ?

TT is for sending to overseas account. Interactive Brokers has changed the beneficiary bank to a Singapore bank, so TT is not the right method. In any case, do not transfer USD to the Citibank N.A. provided by IB because you will suffer a heavy currency conversion rate (USD to SGD).

Since our helpful randomswing has already tried out with the interbank transfer method, I think it should be the right way. As randomswing has mentioned, remember to put in your name and IB account number when you make the interbank transfer so that IB knows which account to route the money to.

 

[h.y.o.m]

I called up the bank and was told we can deposit funds by writing a cheque since it is a Singapore bank account. Has anyone tried it?

This is wrong. IB has warned they only accept money provided by wire, not by cheque.

 

[littlegrasshopper]

What's the branch code for Citibank if I want to do a local bank fund transfer? Can't seem to find the branch.

Citibank, N.A.
Temasek Avenue, Centennial Tower #16-00, Singapore, 03910, Singapore
Bank SWIFT BIC Code: CITISGSG
Bank Account Name: Interactive Brokers LLC.

 

[wcy888]

Hi Randomswing,

May I ask if the Interactive Brokers account given to you for funds transfer is :

Citibank N.A
Temasek Avenue, Centennial Tower #16-00, Singapore 03910, Singapore
Beneficiary SWIFT BIC Code: CITISGSG
Beneficiary Bank Account Name: Interactive Brokers LLC.
Beneficiary Bank Account Number: 0850832021

I have setup the TT payee with above info in Citibank Online but when I tried to key in the transfer amt, it doesnt have SGD dollars in the currency drop down list.
Does anyone has this problem ? Does it mean that the above acct is in USD and I can only transfer USD in the TT ?

Just to update:

I called up the citibank helpdesk and an officer directed me to the 'Help centre' located at the bottom portion of the online Citibank page (you gotta login to your account). Select 'Email' and then choose the 'Request for Telegraphic Transfer' template. Fill in the info as given above and in there you are able to choose transfer in SGD. The request will be submitted to the Remittance Dept who will help me do the transfer.
I submitted the request to transfer S$15K last Friday afternoon. Today my account in IB is updated with S$15K and best of all, there was no $30 charge debited from my citibank acct !!

Hope this helps All who wants to transfer SGD to their IB acct.

Now gotta learn how to convert my S$ to U$ in IB. Anyone does it before and can share ?

 

[littlegrasshopper]

Now gotta learn how to convert my S$ to U$ in IB. Anyone does it before and can share ?

instead of idealpro, click destination to FXCONV

 

[ninad008]

What's the branch code for Citibank if I want to do a local bank fund transfer? Can't seem to find the branch.

Citibank, N.A.
Temasek Avenue, Centennial Tower #16-00, Singapore, 03910, Singapore
Bank SWIFT BIC Code: CITISGSG
Bank Account Name: Interactive Brokers LLC.

Which branch code did you end up using?

 

[littlegrasshopper]

Which branch code did you end up using?

The private one.