Clients often request that their individual accounts be converted to advisor accounts so they can take advantage of the advisor account structure.
Unfortunately, we cannot upgrade an Individual account to an Advisor Account. You must complete a new application, which can be accessed from our home page, by selecting Accounts -> New Accounts -> Advisor.
During the Advisor Account application, you will be given the opportunity to open a Trading Sub Account for yourself. If you do, and if you make sure that all aspects of this new Sub account (titles, tax IDs, trading permissions,e,mail addresses) match those of your existing individual account, you will be able to request a Positions and Funds move to your new account.
Please bear in mind:
- The Advisor Master account is only a shell account that is used to place trades on behalf of Advisor Client accounts.
- The Advisor Master account cannot hold positions.
- In order to trade, you must allocate trades to an Advisor Client account.
When attempting to create sub accounts for themselves, many advisors cannot complete the process due to the client email address matching that of the advisor.
As a measure of client protection, IB will not allow the e-mail address of a client to match that of the Advisor.
What you can do, is create a new e-mail address for yourself, using a free service such as Yahoo!.
This will allow you to create the new sub account.
There are two possible methods which can be used to move an existing IB account underneath an advisor structure, dependent upon the situation of the account being linked.
Link Account to Advisor/Broker:
Interactive Brokers allows existing accounts to request their full account be 'linked' to a Friends and Family Advisor account, a Professional Financial Advisor or a Fully Disclosed Introducing Broker. These linkages include all cash and positions and are available to accounts which are not currently Advisor or Broker clients. There are a number of checks which are performed which may prevent the linking of an account, such as, but not limited to, trading permission incompatibilities between the Advisor or Broker Master and the client account, commission schedule1 differences, etc.
To use this functionality, the user on the account requesting to be linked will need to log into Account Management.
If your Account Management session has a series of menu items on the left: From the Account Administration menu, click Link Account to Advisor/Broker.
If your Account Management session has a series of menu items on the top: Click Manage Account followed by the Add Accounts item. You will then see the Link Account to Advisor/Broker tab.
You will be prompted to enter the account ID and the title of the Advisor or Broker which you are attempting to link to. After submitting this information, users will be presented with any applicable agreements and will need to confirm the request.
Once confirmed, the advisor or broker will receive an email notifying them of the requested link. They will need to log into Account Management to either accept or reject the request. IB will process accepted requests at approximately 3:00 p.m. every Friday.
1 Please note, accounts which are configured with an unbundled commission schedule will not be allowed to link to an Advisor or Broker account, unless the commission schedule is changed to bundled. In the Advisor and Broker account structures, commission schedules cannot be defined for client accounts. If not properly configured at the master level, changing your commission schedule to bundled may result in higher commission charges.
Transfer Of Assets - To Another IB Advisor Managed Account
For those clients which have an attached or additional account, in order to move under an Advisor, you must first open a new account directly under the Advisor, which duplicates the existing account. It is important to ensure that all aspects of the new account (account titles, tax IDs, trading permissions, etc.) match the existing account exactly. Client accounts can be created by the Advisor through Account Management (click here for detail). Once the new account has been approved, clients will be able to log into Account Management and select the Transfer of Assets option as the Transfer Method in the Positions Transfer section of Funds Management. Please keep in mind the following:
There are 3 ways for an Advisor to open a client account. All three methods are started from the FA Account Management, Account Administration -> Add Account.
Fully Electronic Invitation
With this method, the FA sends an invitation to the client. The client completes all information and submits for approval. The password is given to the client immediately.
With this method, the FA completes the application on behalf of the client, then sends to the client for a signature. Once the account is approved, the password is mailed, via US Mail, to the customer. While the application is pending, the FA can view and reprint from the FA Account Management.
With this method, the FA or the client completes the application and mails / faxes it to IB for approval. Once the account is approved, the password is mailed, via US Mail, to the customer.
Note: If the FA Wants to open a sub account for himself
The FA is asked, when completing the FA application, if they would like to create a trading sub account for themselves. If they choose no, they may open an account at a later time, however they will be required to submit all new documents. They can submit a request to firstname.lastname@example.org to request that the documents which were used for the master account be applied to the sub account. To create a sub account they should complete an Electronic Invitation, accessible through the FA Account Management. The trading sub account of the FA can not be set up as an IRA account.
In order to enabled for portfolio margining an account must be approved for option trading and must have at least USD 100,000 in net liquidating equity. Account holders will also be required to acknowledge and sign the Portfolio Margin Risk Disclosure document and be bound by its terms.
Portfolio margining may be requested through the on-line application phase (in the Account Configuration step) or after the account has been approved. To apply once the account has already been approved, log into Account Management and select the Trading Access and then Trading Configuration menu items. There you may choose the portfolio margin treatment which will initiate the approval process. Please note that requests are subject to review (generally a 1-2 day process) and may be declined for various reasons including a projected increase in margin upon upgrade from Reg T to Portfolio Margining. Also note that accounts approved for portfolio margining but maintaining net liquidating equity below the USD 100,000 threshold will remain subject to Reg T margining and not have portfolio margining applied until such time the net liquidating value of the account exceeds USD 100,000.
Nigeria is one of several countries subject to US government sanctions, money laundering risks and/or other concerns which preclude IB from doing business with its residents. If a particular country is not represented on the application list, its residents are not eligible for application consideration. IB does not waive its restrictions in this regard.