How can I close out the nominal FOREX positions in my account?
When account holders enter into transactions with instruments which are denominated in a non-Base Currency, the resultant profit or loss along with any interest charges (in the event of a margin loan) will remain in the currency in which the product was denominated until such time the account holder acts to close the currency position(s). This responsibility rests with the account holder as closing the position requires acceptance of a conversion price which is likely to be subject to continuous fluctuation similar to any other financial instrument.
There are limited instances in which IBKR will act to close a non-Base Currency position, including the following:
1. In situations where a margin deficiency exists and the position is closed in an effort to restore margin compliance; and
2. If the non-Base Currency balance is deemed to be nominal. Nominal balances are defined as those below USD 5.00, or equivalent. Such balances are regularly swept once settlement has been completed into the Base Currency as long as no other unsettled activity remains. Note that balances which are accrued but not yet posted, such as interest debits and credits, are not subject to being swept while in an accrual state.
3. If the account equity is deemed to be nominal. Here, if the account balance is below USD 80.00, or equivalent, the balance consists solely of cash and there has been no trade activity over the prior 10 business days, all non-Base Currency balances will be unwound and converted into the Base Currency. Note that this logic does not apply to accounts managed by a financial advisor or carried on behalf of an introducing broker.
4. If the account has selected the Close Account option in Client Portal. Here, all non-Base Currency balances not greater than 1,000 USD equivalents will be automatically converted into the Base Currency.
IBKR does provide an expedited process to assist account holders who wish to close all non-Base Currency positions collectively. To use this process, start by clicking on the Account button at the top of the TWS, which opens up a window displaying account balances including cash positions in all denominations. In the section titled 'Market Value - Real FX Balance" right click on any row to from the drop down menu to select the option titled 'Close All Non-Base Currency Positions'. Upon clicking that link, the account holder will be guided through a series of steps which will create a market order to close any non-Base Currency positions.
NOTE: Commissions are charged on FOREX conversions initiated by the account holder but not on those initiated by IBKR for the purpose of closing a nominal balance as noted above. IBKR will charge a commission if the position was liquidated in order to restore margin compliance.
Glossary terms:
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 Client Portal 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.
Does IBKR provide for a dormant or inactive account status?
While there is no provision for dormant or inactive account status, there is no monthly minimum activity requirement or inactivity fee in your IBKR account.
While we have no minimum account balance, should the account balance fall below USD 2,000 IBKR is precluded, by regulation, from affording margin treatment to securities positions. In addition, account holders will also be billed for any market data subscriptions maintained and, as a matter of policy, will have subscriptions terminated automatically when the account balance falls below USD 500.
Individuals seeking to close an account are encouraged to refer to our User's Guide to familiarize themselves with the steps and prerequisites for taking this action.
