Can I convert a long cash balance to a non-base currency or trade a position denominated in a non-base currency in my cash account?
Overview:
Yes, albeit, with certain limitations. IBKR provides cash accounts the ability to trade products denominated in a currency other than the designated base currency of the account as long as the account is classified as a multi-currency cash account (i.e., maintains Forex trading permissions). To trade a security denominated in a non-base currency, the account holder must either first deposit the appropriate currency into their account or perform a currency conversion via the IdealPro venue. Regardless of the method selected, one needs to ensure that a sufficient balance of the appropriate currency exists in order to cover the purchase price of the applicable security including commissions prior to submitting the order or it will be rejected. This implies that IdealPro currency conversions must settle prior to the converted funds being available for a subsequent transaction (e.g., if you are converting USD into EUR for the purpose of purchasing a EUR denominated stock, you would not be able to enter the stock order until the conversion trade had settled two business days later).
Individuals trading futures in a cash account should note that futures variation is settled in cash and any variation which serves to generate a cash deficit in any given currency type (i.e. variation exceeds available cash margin) will result in a forced position liquidation in an amount sufficient to eliminate the cash deficit.
Finally, note that cash accounts are restricted from holding a short balance in any non-base currency as this would constitute a margin loan. In addition, clients of IB India are not allowed to maintain a multi-currency cash account and may only maintain assets which are denominated in INR.
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.
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Are non-US residents subject to withholding for tax purposes?
Overview:
Information relating to tax obligations is reported as required to the tax authorities within your country of residence as well as other countries if trading products subject to any local withholding requirements. Unless specifically directed by a taxing authority, IBKR does not withhold taxes on proceeds from security sales. We are required by US tax law, for example, to withhold US taxes on dividends paid by US corporations to foreign persons at a rate of 30%. This rate may be lower if the US has entered into a tax treaty with your country. In addition, investment interest income is not subject to US withholding. All withholdings for non-US persons and most entities will be reported on Form 1042-S at the close of each year. For further information refer to IRS publication 901 and/or your tax advisor.
A/B SIGNATORY OVERVIEW
Overview:
The concept of multiple, or A/B, signatories is intended to provide multi-user institutional accounts with an internal fraud and error control typically employed by these institutions in other operational facets of their business. This control mechanism requires that multiple individuals provide confirmation of a given request prior to IBKR acting upon it. Control is accomplished through the three steps outlined below.:
Background:
- Defining those functions which require control via a multi-user authorization process.
- IBKR has defined two functions, the creation or modification of additional users and funds management as those which may be controlled via multi-user authorization.
- Specifying the number of account users necessary to provide adequate control.
- For a given function, up to 3 users, or Authorizers, may be specified as being required to provide approval prior to the processing of a request.
- The number of Authorizers specified logically cannot exceed the number of users associated with the account.
- For control purposes (i.e. do not want to allow a given user to circumvent the authorization process by unilaterally making changes), the number of Authorizers can never be decreased only increased.
- This process is managed through the Account Administration/Authorizations menu options within Account Management
- Delineating levels of authority for each Authorizer.
- One of 2 levels of authority, either ‘A’ – high or ‘B’ – low, must be specified for each Authorizer.
- For any function requiring control, a minimum number of ‘A’ Authorizers who are required to provide approval before a request can be processed must be specified
- The minimum number of ‘A’ Authorizers specified for a particular function cannot logically exceed the number of ‘A’ Authorizers set up for that function.
- When the required number of Authorizers that is required to provide approval exceeds the minimum number of ‘A’ Authorizers specified, either ‘A’ or ‘B’ Authorizers are eligible to provide the balance of approval.
- This process is managed through the Account Administration/User Access Rights menu options within Account Management
- The table below illustrates the authorization scenarios which are possible based upon the set-up criteria (# of Authorizers and minimum ‘A’ signatories required) established by the account holder.
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POSSIBLE A/B AUTHORIZATION SCENARIOS
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# of Authorizers
Specified
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Minimum # of ‘A’
Signatories
Specified
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# of ‘A’
Signatories Required to Authorize
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# of ‘B’
Signatories Required to Authorize
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0
|
0
|
0
|
0
|
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1
|
1
|
1
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0
|
|
2
|
2
|
2
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0
|
|
2
|
1
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1 or 2
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1 if only 1 ‘A’ has signed, 0 if 2 ‘A’s have signed
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3
|
1
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1, 2 or 3
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2 if only 1 ‘A’ has signed, 1 if only 2 ‘A’s have signed,0 if 3 ‘A’s have signed
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3
|
2
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2 or 3
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1 if only 2 ‘A’s have signed, 0 if 3 ‘A’s have signed
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3
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3
|
3
|
0
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