Official Shiny Things thread—Part III

[cassowary18]

What happens to your stock holdings when you pass away? Both in CDP and custodian. Local and overseas stocks.

Assume:
1. There are no U.S. estate taxable stocks.
2. No will.

 

[hwckhs]

What happens to your stock holdings when you pass away? Both in CDP and custodian.

Assume:
1. There are no U.S. estate taxable stocks.
2. No will.

Are you asking about tax or estate?

Anyway, if there is no will, the Intestate Succession Act will take effect.

Tax issue is separate, I believe it depends on your residence status and the domicile of the holdings.

 

[zoneguard]

Anyway, if there is no will, the Intestate Succession Act will take effect.

For Muslims, the Faraid will apply.

 

[cassowary18]

Are you asking about tax or estate?

Anyway, if there is no will, the Intestate Succession Act will take effect.

Tax issue is separate, I believe it depends on your residence status and the domicile of the holdings.

OK understood. So I write to the broker with the Letter of Administration and what happens next? The stocks get transferred to beneficiaries according to the Intestate Succession Act?

 

[hwckhs]

OK understood. So I write to the broker with the Letter of Administration and what happens next? The stocks get transferred to beneficiaries according to the Intestate Succession Act?

Not too sure about the details, but some links that may be useful:
https://singaporelegaladvice.com/law-articles/letters-of-administration-intestacy-law-in-singapore/
https://singaporelegaladvice.com/law-articles/wills-probate-and-executors-in-singapore/

I doubt the broker handles distribution. This should be the duty of the administrator.

 

[ohmyjoshh]

Hi all! I have an IBKR cash account with <USD100k. I recently heard about below 3 things and hope I could consult you guys for some advice. Thank you very much in advance!

On IBKR LLC vs IBKR SG

I understand that this is a tradeoff between:

IBKR LLC: SIPC protection
IBKR SG: Able to trade on SGX

1. Fees wise, I gather the only impact to be GST on the trading fees? But so long as I am still within the USD10 minimum monthly fee this should have no impact?

2. For SIPC protection, may I ask if any other protection is available, or would we just be counting on IBKR SG not going bankrupt?

On Stock Yield Enhancement Program

I understand that in order to qualify for this, we either need to have a cash account of >USD 50k or a margin account.

3. Would it be recommended for someone to convert their cash account to a margin account solely to enroll into the program?

On linking current IBKR account to TradeStation Global

I understand that this is one way to get around the minimum monthly fee.

4. However, are there any downsides one should take note of?

 

[newjersey]

2. For SIPC protection, may I ask if any other protection is available, or would we just be counting on IBKR SG not going bankrupt?

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Yes.

but it applies to all other local brokers too, (including bank brokers), if they go bankrupt... u are reduced to dust too.

 

[crystalnox]

|


Yes.

but it applies to all other local brokers too, (including bank brokers), if they go bankrupt... u are reduced to dust too.

Yeah this point, I don’t know why everyone is knocking on IBKR SG for not having SIPC protection when it’s almost certain the broker they are using doesn’t have SIPC protection either.

 

[newjersey]

Yeah this point, I don’t know why everyone is knocking on IBKR SG for not having SIPC protection when it’s almost certain the broker they are using doesn’t have SIPC protection either.

you must obviously be a ...

it's because IB USA > all SG brokers, that's why in contrast, IB SG isn't as good as IB USA.

 

[hwckhs]

if they go bankrupt... u are reduced to dust too.

Wow, that's a scary statement. Can you back up your claim with fact and evidence? I thought most (if not all) brokers ring-fence their customers' holdings?

 

[hwckhs]

Not sure about other brokers, but this is what SCB says:

https://www.sc.com/sg/help/faqs/bank-with-us-faqs/

How would the securities purchased by me through the Online Trading platform be held?

Standard Chartered Bank (Singapore) Limited (The “Bank”) acts as a custodian in respect of the securities purchased through the Online Trading platform, as well as for securities transferred to the Bank by the clients for the purpose of consolidating their securities holding with the Bank. In doing so, the Bank is providing safe custody service on terms set out in the Investment Product Terms.

These securities are held on trust by the Bank or its nominee. The clients are the beneficial owners of these securities. In the unlikely event that the Bank becomes insolvent, such securities held on trust are not subject to the claims of the Bank’s creditors. This is because the securities are held on trust by the Bank or its nominee as custodian, and are kept separate from the Bank’s own assets.

For more information, please refer to the Investment Product Terms

 

[BBCWatcher]

Wow, that's a scary statement. Can you back up your claim with fact and evidence? I thought most (if not all) brokers ring-fence their customers' holdings?

Yes, brokers in Singapore are supposed to ring fence client assets. Presumably they do. What happens in the unlikely event they don't? What happens if the broker commits fraud, for example? Well, maybe somebody goes to prison (maybe), but....

The SIPC backstops these and other "evil broker" scenarios. Unfortunately, Singapore doesn't have anything like the SIPC.

 

[newjersey]

Wow, that's a scary statement. Can you back up your claim with fact and evidence? I thought most (if not all) brokers ring-fence their customers' holdings?

time to grow up and do your own homework.

this is the key reason why sg citizens are being replaced... so entitled.

 

[hwckhs]

The SIPC backstops these and other "evil broker" scenarios. Unfortunately, Singapore doesn't have anything like the SIPC.

SIPC obviously offers better protection.

Nonetheless, in the absence of SIPC, one can minimize the "evil broker" risks by choosing a broker that is reputable and trustworthy.

 

[moolala]

On linking current IBKR account to TradeStation Global

I understand that this is one way to get around the minimum monthly fee.

4. However, are there any downsides one should take note of?

where u read can do #4 and avoid the fees?

moi got 2 IB account, wan to save on fee to prevent close down since I transfer everything to 1 side

this account got all my previous reports etc so keep it for flexibility

 

[hwckhs]

time to grow up and do your own homework.

this is the key reason why sg citizens are being replaced... so entitled.

I'm fine if you can't discuss in a civic manner. Re-adding you to my block list. No interest in reading your posts.

I miss ST dearly, because only he can discipline you.

 

[cassowary18]

where u read can do #4 and avoid the fees?

moi got 2 IB account, wan to save on fee to prevent close down since I transfer everything to 1 side

this account got all my previous reports etc so keep it for flexibility

I tried signing up for Tradestation Global and this is what I got:

Thank You
for your interest in our product.

Unfortunately, our Global account is currently not available in your country. We are working hard to cover as many countries as possible and we will contact you as soon as we have an update.

So not a viable option.

 

[BBCWatcher]

SIPC obviously offers better protection.

Nonetheless, in the absence of SIPC, one can minimize the "evil broker" risks by choosing a broker that is reputable and trustworthy.

Yes, and Interactive Brokers is such an example. I agree with ST’s observations about their risk control policies and mechanisms: they’re fierce.

Another thing you can do, if you wish, is to have a little custodial diversity. As I’ve mentioned many times I have a policy of not entrusting more than half of total household wealth to one custodian. Even if you like that policy (you don’t have to) it doesn’t necessarily rule out having just one broker.

 

[moolala]

Yes, and Interactive Brokers is such an example. I agree with ST’s observations about their risk control policies and mechanisms: they’re fierce.

Another thing you can do, if you wish, is to have a little custodial diversity. As I’ve mentioned many times I have a policy of not entrusting more than half of total household wealth to one custodian. Even if you like that policy (you don’t have to) it doesn’t necessarily rule out having just one broker.

Do u mean IB for both ib llc and ib SG or only ib llc only?

IB SG doesn't have to comply with us sec rules... tbh I don't even know much about SG securities requirements

it definitely sux since there's no insurance when there's insolvency

 

[newjersey]

I'm fine if you can't discuss in a civic manner. Re-adding you to my block list. No interest in reading your posts.

I miss ST dearly, because only he can discipline you.

good that i don't read comments like yours, thanks!

this is something i don't understand.

you don't find out what you don't know and entask someone else to do it?

no wonder, poor remains poor cause they are mostly lazy.