Can I upgrade my individual account to an advisor account?

Overview: 

Clients often request that their individual accounts be converted to advisor accounts so they can take advantage of the advisor account structure.

Information:

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.

How do I move my current IBKR account underneath an advisor account?

Overview: 

There are two possible methods which can be used to move an existing IBKR 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 in to Client Portal and choose the Settings menu option followed by Account Settings. In the Configuration section click the gear icon next to the words "Create, Move, Link or Partition an Account". You will be presented with a variety of options, one of which is "Move my entire account to an account managed by an Advisor/Broker". Check this option and click Continue.

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 Advisor Portal / Account Management to either accept or reject the request.  IBKR 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 IBKR 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 Advisor Portal (click here for detail). Once the new account has been approved, clients will be able to log into Client Portal and select the Internal Transfer option as the Transfer Method in the Transfer Positions section of Transfer & Pay.  Please keep in mind the following:

  • 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.

 

Notes

  • Transfers are processed on a daily basis, with the exception of US option expiration Friday.
  • The new account should be allowed to close positions on the first day of transfer but will not be allowed to open positions as the new account will not have a previous day Equity With Loan value.
  • The Cost Basis cannot be manipulated for Internal transfers, only for ACATs from outside sources.

 

How do advisors open client or sub accounts?

Overview: 

There are two ways for an Advisor to open a client account. Both methods are initiated from within the Advisor Portal by navigating to Manage Clients -> Create and Link Accounts-> Create -> New.

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.

Semi-Electronic Application
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 client. While the application is pending, the FA can view and reprint from the Advisor Portal.

Note: If the FA Wants to open a sub account for himself
FAs are 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 newaccounts@interactivebrokers.com to request that the documents 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 Advisor Portal. The trading sub account of the FA cannot be set up as an IRA account.

Why do certain cash deposit and withdrawal requests require that an instruction be created while others do not?

Overview: 

 

Whether or not an instruction is required is a function of both the transaction type (i.e., deposit or withdrawal) and its underlying method (i.,e. check, ACH initiated at IBKR or wire).  In general, if the deposit method dictates that IBKR pull funds directly from the client’s account or if the withdrawal method dictates that IBKR push funds directly to the client’s account, an instruction will be required in order to obtain the necessary account specific information and authorization to act.  Outlined in the chart below are the possible scenarios.

 

 

 

INSTRUCTION REQUIREMENTS BY TRANSACTION TYPE & METHOD (Yes/No)

 

Check

ACH – at Bank

ACH – at IBKR

EFT

Wire

Deposit

No

No

Yes

Yes

No

Withdrawal

No

N/A

Yes, if instruction is  created as  Debit/Credit, no  if  Credit only

Yes

Yes

 

Are there any qualification requirements in order to receive Portfolio Margining treatment on US securities positions and how does one request this form of margin?

Overview: 

In order to enabled for portfolio margining an account must be approved for option trading and must have at least USD 110,000 in net liquidating equity (USD 100,000 to maintain, once enabled). 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 Client Portal and select the Settings and Account Settings menu options. In the Configuration section, click the gear icon next to the words "Account Type". 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. 


 

How can I request for a replacement secure login device or temporary security code?

IBKR is committed to protecting your account and your account assets from fraudulent practices. The Secure Login System provides an extra layer of security to your account. For security purposes, all replacement security device requests must be addressed via telephone and only after the identity of the named account holder or authorized user has been verbally verified. For assistance in accessing your account immediately and obtaining a replacement security device, please contact IBKR Client Services via telephone to restore login access.

 

References
  • See KB69 for information about Temporary passcode validity
  • See KB1131 for an overview of the Secure Login System
  • See KB2636 for information and procedures related to Security Devices
  • See KB2481 for instructions about sharing the Security Login Device between two or more users
  • See KB2545 for instructions on how to opt back in to the Secure Login System
  • See KB975 for instructions on how to return your security device to IB
  • See KB2260 for instructions on activating the IB Key authentication via IBKR Mobile
  • See KB2895 for information about Multiple 2Factor System (M2FS)
  • See KB1861 for information about charges or expenses associated with the security devices

 

How long does a temporary security code last?

IBKR will issue a temporary passcode to secure login system participants in the event their security device has been misplaced, lost or damaged.  The temporary passcode is intended to provide full access to both Client Portal and trading platforms for a period of 2 days. After 2 days, the temporary passcode may no longer be used to access the trading platforms but may be used to access Client Portal for an additional period of 10 days. Client Portal access, however, is limited solely for the purpose of printing or saving the online security card.

The online security card, in contrast, has a lifespan of 21 days, providing the account holder with an opportunity to locate the misplaced device or have the lost or damaged device replaced. Account holders who remain without their physical security device and are unable to log in using either the temporary passcode or on-line security card will need to contact Client Service in order access the account.  

IMPORTANT NOTICE

As a matter of policy, IBKR will not issue consecutive temporary passcodes to a given account, but rather will act to restore the account protection to the most secure level, which is that provided by the physical security device.

 

References
  • See KB70 for instruction for requesting a Temporary passcode
  • See KB1131 for an overview of the Secure Login System
  • See KB2636 for information and procedures related to Security Devices
  • See KB2481 for instructions about sharing the Security Login Device between two or more users
  • See KB2545 for instructions on how to opt back in to the Secure Login System
  • See KB975 for instructions on how to return your security device to IB
  • See KB2260 for instructions on activating the IB Key authentication via IBKR Mobile
  • See KB2895 for information about Multiple 2Factor System (M2FS)
  • See KB1861 for information about charges or expenses associated with the security devices

 

How do I transfer my US securities positions from my current broker to IB?

Overview: 

Broker to broker transfers for US securities are conducted via a process known as the Automated Customer Account Transfer Service or ACATS.  This process generally takes between 4 to 8 business days to complete in order to accommodate the verification of the transferring account and positions. The request is always initiated via the receiving broker (IB in this case) and can be prompted by following the steps below.

1.      Log into Account Management and select the Transfer & Pay and then Transfer Positions menu options.

2.      From the Transaction Type drop-down list select 'Inbound Position'

3.      From the Method drop-down list select 'ACATS'.

4.      Enter the sending Broker Information in the fields provided, and click CONTINUE

5.      In the Transaction Information section, indicate whether or not you wish to transfer all assets and select Yes to the authorization option. 

a.       Note that a "transfer all assets" election does not require that you specify any assets as an attempt will be made to transfer your account in its entirety.  Account holders should note, however, that certain positions may not be on the list of securities eligible to trade at IB and others, while transferable, may be subject to a house margin requirement higher than that of the delivering broker.  In the event IB receives an asset list from the delivering broker which includes ineligible positions or the aggregate of the positions transferred are such that a margin deficit would exist were the transfer to occur, IB will attempt to contact you to remedy the situation within the allocated time frame after which an automatic reject of the full transfer would take effect.  Account holders may wish to minimize potential delays or problems associated with a ‘Full’ transfer request by verifying security eligibility and margin requirements via the Contract Search link located at the upper right hand corner of the IB homepage prior to initiating the transfer.

b.      If you elect to not "transfer all assets", the system will require that you specify the positions you wish to transfer. Click Add Asset to add the positions you wish to transfer. Fill out the Asset Search and Transaction Information sections and click Continue.

6.      On the page that appears, type your signature in the Signature field, and then click CONTINUE.
Click BACK to modify the transfer request.

Please note that brokers generally freeze the account during the transfer period to ensure an accurate snapshot of assets to transfer and may restrict the transfer of option positions during the week prior to expiration. You may wish to check with the delivering broker to verify their policy in this regard. In addition, please note if your IB account is currently maintaining positions on margin, any cash withdrawals or adverse market moves could increase the likelihood that your account falls out of margin compliance during the transfer period which may delay or prevent completion of the transfer. 

 

IMPORTANT NOTICE

Applicants may meet the initial account funding requirement through the transfer of securities positions and/or cash via the ACATS system.

How do I change my mailing address?

To change your mailing address, you will first need to submit the request through Client Portal. Once logged in to Client Portal, go to the Settings section followed by Account Settings. Click the gear icon next to the user you wish to modify in the Profile section. If you just wish to change your mailing address, select "No" where it asks "is your mailing address the same as the one provided above?" Enter the new mailing address and click Continue at the bottom of the page. 

Please note that your changes are subject to Compliance review prior to taking effect, and for security purposes you may also be required to provide documentation which verifies your new address.


 

How do I change my email address?

Overview: 

To change your email address, you will first need to submit the request through Client Portal. From within Client Portal select Settings followed by User Settings and then click the gear icon next to Email Address in the Communication section. If you have access to your old email, we will send a secure confirmation number to your existing email address. You will then be prompted to enter the confirmation number and your new email. If you do not have access to your old email, you will be prompted to enter your current password along with your new email address. Click Submit to complete the request.

Glossary terms: 
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