ADR pass-through fees

Account holders maintaining positions in American Depository Receipts (ADRs) should note that such securities are subject to periodic fees intended to compensate the agent bank providing custodial services on behalf of the ADR.  These services typically, include inventorying the foreign stocks underlying the ADR and managing all registration, compliance and record-keeping services.

Historically, the agent banks were only able to collect the custody fees by subtracting them from the ADR dividend, however, as many ADRs do not regularly pay dividends, these banks have been unable to collect their fees.  As a result, in 2009, the Depository Trust Company (DTC) received SEC approval to begin collecting these custody fees on behalf of the banks for ADRs which do not pay periodic dividends.  DTC collects these fees from its participant brokers (such as IB) who hold the ADRs for their clients.  These fees are referred to as pass-through fees as they are designed to be then collected by the broker from its clients.

If you hold a position in a dividend paying ADR, these fees will be deducted from the dividend as they have in the past.  If you hold a position in an ADR which does not pay a dividend, this pass-through fee will be reflected on the monthly statement of the record date in which it is assessed.  Similar to the treatment of cash dividends, IB will attempt to reflect upcoming ADR fee allocations within the Accruals section of the account statements as well. Once charged, the fee will be reflected in the Deposits & Withdrawals section of the statement with the description 'Adjustments - Other' along with the symbol of the particular ADR it is associated with.

While the amount of this fee will generally range from $0.01 - $0.03 per share, the amounts may differ by ADR and it is recommended that you refer to your ADR prospectus for specific information.  An on-line search for the prospectus may be conducted through the SEC's EDGAR Company Search tool.

Glossary terms: 
ADR

Activity Download Instructions

Activity Downloads

We provide the ability to download your Activity Statements into the following software:

In addition to the above download solutions, a number of other third-party providers offer portfolio management and tax reporting packages that integrate with our HTML downloads. Please contact the provider for further detail.

Download to Tradelog, Quicken or MS Money
Step 1: If you do not already have an IB Investment account in Quicken or Money, please create one and manually load your current positions. Enable the account for Online Access.
Step 2: Log in to Account Management through our Home Page and choose Activity Downloads (Report Management).
Step 3: Select accounts, dates and a format (Tradelog, Quicken or MS Money) and click the View/Download button.
Step 4: Map the download to your IB Investment Account.
Step 5: Go to the IB Investment Account within Tradelog, Quicken or Money and accept the transactions.

For complete instructions how to import your statement to Tradelog, please visit http://www.armencomp.com/tradelog/interactive_brokers.shtml.

Intuit and Money do not support multiple currencies at this time.

Save an HTML file for Import into Word or Excel
Step 1: Log in to Account Management section of the web site and choose the Activity Statements menu item (Report Management).
Step 2: Choose accounts, dates and a format of HTML/Web, and click the View/Download button.
Step 3: Once the complete statement has loaded in the page, go to the File menu of your browser and choose Save As. This will prompt you to save the file locally on your computer.
Step 4: Enter a file name and choose a location to save your statement.
Step 5: Upload the saved HTML file into MS Excel or MS Word.

Downloading to Captools
If you would like to import your IB statement into Captools Professional please visit http://www.captools.net/ to see the latest import instructions. (Please note that you will need the Captools Broker/Dealer Interface from Captools before you can follow the steps mentioned below. Contact Captools at http://www.captools.net/ for the interface details.):

 

View Schedule D/Gain Loss Summary Worksheet using TurboTax

Log into

Account Management

and choose Tax Forms (Report Management). Select TurboTax TXF Format from the drop down menu and click View Report.

 

Please note that the TXF import is only available on the TurboTax desktop product.

Minimum Activity Fee

In July 2009, a change to the manner in which the monthly Minimum Activity Fee (MAF) is determined will be implemented .  The effect of this change is to no longer allow for Market Data Subscription fees to be considered as a fee eligible to offset the MAF.  Commissions will be the sole fee eligible to offset the MAF either in part or whole. 

The scenarios below are intended to illustrate the impact of this change assuming four different equity/commission scenarios.  In each of these scenarios the account is assumed to be subscribed to the US Securities and Commodities Non-professional Bundle at a cost of USD 10 per month (which is waived if the account generates commissions of at least USD 30 in the month)

 

SCENARIO
OLD (USD) NEW (USD)

Account Equity = USD 10,000/Monthly Commissions = USD 30

    Market Data Fee

    Minimum Activity Fee

    Total

 

$0

$0

$0

 

$0

$0

$0

Account Equity = USD 10,000/Monthly Commissions = USD 10

    Market Data Fee

    Minimum Activity Fee

    Total

 

$10

$0

$10

 

$10

$0

$10

Account Equity = USD 10,000/Monthly Commissions = USD 3

    Market Data Fee

    Minimum Activity Fee

    Total

 

$10

$0

$10

 

$10

$7

$17

Account Equity = USD 1,000/Monthly Commissions = USD 0

    Market Data Fee

    Minimum Activity Fee

    Total

 

$10

$10

$20

 

$10

$20

$30

.

Troubleshooting Tip - Unable to open IB Activity Statement from email link

概観: 

In addition to posting Activity Statements to Account Management, IB provides clients with the option of receiving statements via email (unsecured) by choosing this option from the Email Statements menu item under Account Management. 

Background: 

There have been instances where certain customers who have elected this option receive the email but are unable to open the attachment containing the statement.  Once the email has been sent the handling of these attachments is administered not by IB but rather by the customer's email service provider and/or their desktop security settings.  Oftentimes, a service provider will block access to email attachments in order to minimize the threat of a virus or malware being introduced or perhaps to manage bandwidth and internal disk space.  If this is the case, customers may wish to contact their service provider for assistance  or change their email address.

Alternatively, customers are encouraged to access statements by logging into the secure Account Management application from the website and selecting the Report Management and then Activity Statements menu options.

How can I discontinue the issuance of duplicate copies of my trade confirmations and statements to my former employer?

In order to effect this change you will first need to update your employment by logging into Account Management and selecting the Account Administration and then Account Information menu options. From there you may modify your personal information including employment.  If the nature of your prior employment also involved membership in an exchange, regulatory or self-regulatory organization, or you were an associated person, affiliated person or employee of an exchange member, and these no longer hold true, you will need to change your answer to this question as contained within the Regulatory Info menu option also contained under Account Information.

Finally, please instruct your former employer to send an email to newaccounts@interactivebrokers.com in order to independently confirm this request to discontinue sending duplicate statements.  If your new employer is also a financial institution which, for in-house compliance purposes and/or as a result of regulatory mandate monitors the trading activities of their employees, they will need email a request to newaccounts@interactivebrokers.com in order to receive duplicate statements and trade confirms. 

 

Understanding interest charges when the net cash balance is a credit

An account will be subject to interest charges despite maintaining an overall net long or credit cash balance under the following circumstances: 

1. The account maintains a short or debit balance in a given currency.

For example, an account maintaining a net cash credit balance equivalent to USD 5,000 comprised of a long USD balance of 8,000 and a short EUR balance equivalent to USD 3,000 would be subject to an interest debit based upon the short EUR balance.  There would be no offsetting credit on the long USD balance as it is less than the USD 10,000 Tier I level above which interest is earned.  

Account holders should note that in the event they purchase a security which is denominated in a currency that they do not hold in their account, IB will create a loan in that currency in order to settle the trade with the clearinghouse. If one wishes to avoid such loans and their associated interest charges, they would need to either deposit funds denominated in that particular currency or convert existing cash balances via the Ideal Pro (for balances of USD 25,000 or above) or odd lot (for balances less than USD 25,000) venue prior to entering into your trade. 

 

2. The credit balance is comprised  principally of proceeds from the short sale of securities. 

For example, an account maintaining a net cash credit balance of USD 12,000 which is comprised of a USD debit of 6,000 in the security sub-account (less the market value of any short stock positions) and a short stock market value credit of USD 18,000 would be charged interest on the Tier 1 debit of USD 6,000 and would earn no interest on the short stock credit as it falls below the USD 100,000 Tier I level.

 

3. The credit balance includes unsettled funds.

IB determines interest debits and credits solely based upon settled funds. Just as an account holder is not assessed interest charges on funds borrowed to purchase a security until such time that purchase transaction settles, the account holder will not receive an interest credit, or offset against a debit balance, on funds originating from the sale of a security until such time the transaction has settled (and IB has been credited funds by the clearinghouse).

 

4. The account maintains a debit balance in any one segment.

The IB universal account is an aggregation of underlying sub accounts or segments in which assets and margin requirements are separated, typically for regulatory purposes. Included in these are segments for each of the commodity and security positions which are subject to separate customer protection rules, margining methodologies and, in the case of cash balances, investment guidelines. Accordingly, an account maintaining a net cash credit balance of USD 5,000 comprised of a long USD balance of 8,000 in the commodity segment and a short USD balance of 3,000 in the security segment would be subject to separate interest calculations on each of the two balances (i.e., a charge on any short balance with a potential credit on the long balance based upon a combination of the Tier it falls into and the current benchmark rate). 

For additional information regarding interest calculations, please refer to How Interest is Calculated.

How can I access historical statements and how will I obtain tax reports once my account has been closed?

Background: 

After an account has been closed, the account holder will continue to be provided access to their Account Management for the purpose of reviewing and printing historical statements along with historical as well as the following year's tax forms (once issued).  Access is provided using the same user name and password combination in place at the time of closing.  Accounts which were enrolled in the Secure Transaction Program will no longer need a security device to log into their account.

If how will I know the transaction price of a mutual fund purchase or sale on any given day?

 

Individuals who purchase or redeem mutual fund shares receive the next computed share price following the fund's receipt of the transaction order. Mutual fund orders are accumulated during the day and are transmitted to the fund at 15:59 for pricing. Once the fund determines its net asset value as of the close, this price will be posted to your Daily Activity Statement and to the TWS.

 

Will the consolidated statement reflect the tax basis choices of client accounts?

概観: 

Clients have the ability to select one of three tax basis methods, First in First Out (FIFO), Last in First Out (LIFO) and Max Losses.  The method selected will affect the P&L values which are posted on the statements.

In an advisor structure, where the advisor has the ability to create a consolidated statement, those P&L values posted will properly reflect the tax basis choice as these calculations are done independent of how a statement may be viewed.

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