What corporate action services does Interactive Brokers provide?

Interactive Brokers services relating to corporate actions are as follows:

1. The processing of mandatory corporate actions (e.g. prompt dividend recovery, spin-offs, stock splits, effective mergers and etc.) at no extra cost; and

2. Providing, on a best efforts basis, details of corporate action announcements associated with stock and option positions held in your account.  These details are provided in the form of a web ticket posted to the Corporate Actions tab of your Message Center.  Account holders may also elect to set their preferences so as to receive a copy of such details via email.  Information provided includes

  • Mandatory offers - general information regarding mandatory offers
  • Voluntary offers - eligible account holders may submit elections directly through Account Management

 

IMPORTANT NOTE:
Interactive Brokers does not provide any guidance, consultation or advice regarding corporate actions to its customers. IB customers are solely responsible for the monitoring of the existence of a corporate action, understanding the rights and terms of any corporate action and providing timely and accurate instructions regarding the handling for any voluntary corporate action.

Which Tax Form Should I Select?

Overview: 

3 simple questions can help you choose a tax certification form.   Read the questions and select the form.  For more detailed help, see Tax Information & Reporting.

Question # 1:      Are you a U.S. Person or a U.S. Entity?

• U.S. Citizen • U.S. Business or Organization
• U.S. Green Card Holder • U.S. Domestic Trust
                                       • U.S. Legal Resident

If the answer is YES, complete Form W-9

If the answer is NO, go to # 2.

Question # 2:      Do you have a U.S. Visa?

 

• H-1B Visa Holder • TN Visa Holder         
                                         • O-1 Visa Holder

If the answer is YES, find your status by the "substantial presence test." See More U.S. Legal Resident Info 

If the answer is NO, go to # 3.

Question # 3:      Are you a Legal Resident or Entity of another country?

                                      *Question does Not apply to U.S. Citizens/Entities or Green Card Holders

• Permanent Home Outside of U.S • Entity Formed Outside of U.S.
                                      •Business or Organization formed outside of U.S.

If the answer is YES, complete Form W-8  (U.S. Citizens, Green Card Holders, and Entities still complete the W-9.)

NOT SURE because you work, live, or study in the U.S. then, see More U.S. Legal Resident Info 

 

Disclaimer:  IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax adviser or refer to the U.S. Internal Revenue Service.

How to Deposit Funds Via an ACH Initiated by Interactive Brokers

How to transfer funds from your bank account to your Interactive Brokers account via an ACH deposit initiated by IB

Enter KB567 into the search engine for additional information regarding ACH deposits

How to Transfer Funds Via an ACH Initiated by Your Bank

How to transfer funds between your bank account and your Interactive Brokers account via an ACH initiated at your bank.

Enter KB567 into the search engine for additional information regarding ACH deposits.

How to Deposit Funds Via a Wire Transfer

How to deposit funds via a wire transfer

Enter KB834 in the Knowledge Base search engine for additional information on how to deposit funds via a bank wire transfer

Setting preferences to receive SMS text messages

Short Message Service, or SMS, allows for the interchange of short text messages between mobile phone devices.  IB uses this technology to allow customers to receive text messages when, for example, a response to your webticket or a corporate action notification has been sent to your Message Center. As SMS accommodates messages of only up to 160 characters, the text message solely serves to advise one that a message has been posted and is viewable through login to Account Management.  Character limitations and security concerns preclude sending a message which contains the complete text of the Message Center item.

To request this feature, log into Account Management, click on the Message Center icon and then the Preferences link. A window will open which allows you to select the SMS/CELL notification check box after which you will need to specify the country code along with the phone number (including city code) of your mobile device. 

This feature may be disabled at any time by un-checking the SMS/CELL notification check box.

SIPP Overview

 

What is a SIPP?
 
A SIPP account is a pension account that allows customers to control their retirement savings and where they are invested. SIPPs provide customers with more flexibility and self control over their savings, and are available to all UK residents between the ages of 18 and 75. Customers who are employed or self-employed may contribute up to 100% of their earnings (up to £235,000) in any one tax year. Further they allow retired and unemployed customers to invest up to £3,600 per year. You can trade financial products, property and other items in a SIPP.
 
Interactive Brokers (UK) Limited does not accept SIPP’s outright, rather it does accept a SIPP Administrator of a SIPP to open a master account. Afterwards, a SIPP Administrator's clients can open sub accounts and trade their SIPP through Interactive Brokers (UK) Limited.
 
For more information about SIPP’s in the UK, refer to the HM Revenue & Customs website www.hmrc.gov.uk
 
Can I open a SIPP account with Interactive Brokers LLC (US) or (Hong Kong)?
 
No, the SIPP Administrator account and its sub accounts can only open an account with Interactive Brokers (UK) Limited.
 
Can I trade property and other acceptable investments through my SIPP at Interactive Brokers (UK) Limited?
You can only trade regulated financial products through your SIPP that is held with us.
 
What is a SIPP Administrator?
A SIPP Administrator is a regulated company with the Financial Conduct Authority in the United Kingdom that acts as the trustee of the SIPP. Further it provides various administrative duties on behalf of the SIPP e.g., reporting to HM Revenue & Customs.
 
How do I get my SIPP Administrator to open a master account?  
Refer to our Interactive Brokers (UK) Limited website www.interactivebrokers.co.uk under Account, then under SIPP. From here a SIPP Administrator can open a master account (at no cost). Alternatively you can contact an Interactive Brokers (UK) Limited sales representative.
 
What qualifies a SIPP Administrator to open a master account?  
We only accept UK registered companies with the Financial Conduct Authority which are authorised SIPP Administrators that are in good standing and adhere to our terms and conditions.
 
Is there a cost to open a master account?  
No, unless the master account wants to view market data then fees apply.
 
Can anyone trade a SIPP sub account with Interactive Brokers?
Only UK residents and individuals between the ages of 18 and 75 who have good or extensive knowledge of any product they wish to trade and that we support, prior execution of 100 or more trades (of any product) and will make a minimum deposit of $5,000 or equivalent in stock.
 
Can I trade on margin (leverage)?
No, all SIPP sub accounts can only trade in a cash account.
 
What is a cash account?
A cash account only allows a sub account to trade stocks, bonds, equity options, futures, futures options, single stock futures (SSFs), ETFs, forex and warrants.  An individual can only deposit one base currency that Interactive Brokers supports, but can trade products denominated in other currencies after using a Forex transaction to acquire the currency. You must wait for the Forex trade to settle (two business days following trade date) before the currency is available for trading. Cash accounts can only trade the following order types: long stock (no shorting), long calls or puts, covered calls, protective puts, short naked puts and call spread, put spread.
 
What are the costs to open a sub account?
Initial deposit $5,000 + $10 minimum brokerage fee per month + IB brokerage fees (applicable) + Market data fees (if applicable) and other costs may apply.
 
Can I trade my ISA through Interactive Brokers?
No, we only accept SIPP accounts.
 
Does Interactive Brokers give advice in trading within your SIPP?
No, Interactive Brokers give no trading advice as it is a non discretionary broker.
 
Do you accept cheques to fund my SIPP?
No we only accept wire transfers or positions (FREE of PAYMENT).    
                       
What is a FREE of PAYMENT transfer?
The transfer of securities for which there is no need for a cash exchange. Rather the securities are already paid up in full.
 
Can I transfer physical shares (FREE of PAYMENT) in my sub account?
No we only accept dematerialized shares.
 
How many users can trade my SIPP sub account?
Only one.

Adding a second user for an individual account holder

Overview: 
Individual account holders have the ability to add multiple users to their IB account.  The account holder may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API).  The account holder may also provide access to up to 5 (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement.  In addition, each of these individuals may also be provided with a second user access. A second user of an account cannot be provided with funding rights. All other power of attorney users may have funding access if granted by the account holder.
 
In each case, the additional user will be assigned a unique user name which is required for log in both to Account Management and the trading platform of choice.  Procedures for adding a second user account for access by the existing account holder are outlined below (search KB1001 for procedures for adding non-employee users).
 
Background: 

Procedures for adding a second (account holder) user are as follows: 

  1. Log into Account Management.
  2. Select the Manage Account and then Access Rights menu options.
  3. Click on the 2nd User link next to the account holder's name.
  4. You will be presented with the Add Second User and Access Rights page where you will need to specify the first five characters of the new user name and the password you wish to use for that particular user name. While this user is intended to be accessed solely by the existing account holder, it is generally intended for those connecting via an API and therefore does not have access to all Account Management functions.
  5. Click on the Continue button.
  6. Verify details and click on the Continue button.
  7. The account holder will then need to log into Account Management under the new user name.  At that point a token confirmation number will sent to their email for the purpose of creating a new password.
  8. Please note user add requests are subject to processing which, after the above steps have been completed, may take up to 2 business days prior to access being provided. 

IMPORTANT NOTES:

1. In accordance with market data vendor requirements, the account will be assessed a separate market data subscription fee for each user account added.  In addition, user account market data subscriptions are tied to and cannot vary from that of the account holder.

2. Account holders may delete a 2nd user account by clicking on the delete link next to the user name located within the Manage Account and then Access Rights menu options.

Free of Payment (FOP) Transfers

Overview: 

Free of Payment (FOP) is term used by IB to refer to a process of transferring long US securities between IB and another financial institution (e.g. bank, broker or transfer agent) through the Depository Trust Company (DTC).

The FOP transfer method is often used when:

1. The delivering form is not a DTC ACAT (Automated Customer Account Transfer) Participant.

2. The customer would like to expedite the delivery of their securities.   The processing time frame for securities transferred via FOP may, in certain instances, be less than that associated with an ACATS transfer.

The following steps are to be followed in order to create a FOP notice:

1. Log into Account Management.

2. Select Funding or Funds Management and then Position Transfers.

3. From the drop-down list, select the Transfer Method: Free of Payment.

4. Select the applicable transaction Type: Deposit or Withdraw.

5. In the case of a FOP Withdrawal, the steps are as follows:

    - Select the Destination to whom the securities are being transferred.

    - Enter your account number of the Third Party Broker Acount Information.

    - Specify the security (Stock, Warrants or US Bonds).

    - Enter the Symbol, Shares and the Exchange (optional) and click Add.

    - Provide your electronic signature authorizing the transfer request and clicking on the Continue button.

    - Verify your identity by entering your password and clicking on the Confirm Request button;

    - If your account is enrolled in the Secure Transaction Program (STP), the processing of your request   will take place once you enter your confirmation code and click on the Confirm Request button.  If not STP enrolled, your request will be subject to security verification, requiring that you contact our Customer Service Center to validate your identity and request.

6. In the case of a FOP Deposit, the steps are as follows:

    - Select the Source to whom the securities are being transferred.

    - Enter your account number of the Third Party Broker Acount Information.

    - Specify the security (Stocks, Warrants or US Bonds).

    - Enter the Symbol, Shares and the Exchange (optional) and click Add.

    - Provide your electronic signature authorizing the transfer request and clicking on the Continue button.

    - A printable version of the FOP request is made available should your transferring firm require an authorization form.

7. Transfer requests are typically completed within five business days.

 
IMPORTANT NOTE:

While IB does not assess a fee to process FOP transfers, other firms may and we therefore recommend that you confirm with the contra-firm their policies in this regard prior to submitting a request.  In the event a contra-firm does charge a fee to IB, the fee will be passed to the IB account holder.

 

Glossary terms: 

Adding (non-employee) users to an individual account

Overview: 

Individual account holders have the ability to add multiple users to their IB account.  The account holder may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API).  The account holder may also provide access to up to 15 (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement.  In addition, each of these individuals may also be provided with a second user access.

In each case, the additional user will be assigned a unique user name which is required for log in both to Account Management and the trading platform of choice.  Procedures for adding a (non-employee) individual user are outlined below (search KB1004 for procedures for adding a second user for an individual account holder).

Background: 

Procedures for adding a non-employee user are as follows: 

  1. Log into Account Management.
  2. Select the Manage Account and then Access Rights menu options.
  3. Click on the Add User button.
  4. You will be presented with the Add User and Access Rights page where you will need to specify the first and last name of the individual who you wish to provide access, the first five characters of the user name, a password, that individual’s email address, and relationship to the Account Holder.
  5. Specify those functions which you which to provide access. These will be restricted to Trade, Reports and Manage Account).
  6. Click on the Continue button.
  7. Verify details and click on the Submit button.
  8. Provide electronic signature to the Limited Power of Attorney agreement and click on the Continue button.
  9. If Trading Access has been provided, select the Home and Pending Items menu options and accept the Trader Authorization Form by clicking on the Continue button.
  10. The account holder will then need to contact the individual added as a user and provide them with the user user name and password combination they have selected. 
  11. The new user will need to log into Account Management and confirm their email address by entering the token confirmation number sent to the address as provided.  At that point another token confirmation number will sent to their email for the purpose of creating a new password and the user will then be prompted to fill out personal information on the New User Confirmation page and sign the Limited Power of Attorney agreement.
  12. Please note user add requests are subject to processing which, after the above steps have been completed, may take up to 2 business days prior to access being provided. 

IMPORTANT NOTES:

1. In accordance with market data vendor requirements, the account will be assessed a separate market data subscription fee for each user account added.  In addition, user account market data subscriptions are tied to and cannot vary from that of the account holder.

2. Account holders may delete a user account by clicking on the delete link next to the user name located within the Manage Account and then Access Rights menu options.

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