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 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 stock/option order types:
- Long Stock (no shorting)
- Long Call or a Long Put
- Covered Calls
- Short Naked Put: only if covered by cash
- Call Spread: Only European style cash settled
- Put Spread: Only European style cash settled
- Long Butterfly: Only European style cash settled
- Iron Condor: Only European style cash settled
- Long Call and Put (long straddle)
Can I trade my ISA through Interactive Brokers?
Yes, please click on the link below to learn more about our Stocks & Shares ISA account.
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.