Why am I required to provide a W-8 if I am not a US citizen or resident?
As IB LLC is a carrying broker domiciled in the U.S., it is required to report information and, in certain instances, make payment of withholding taxes to the U.S. tax authority, the Internal Revenue Service for all account holders. To certify oneself as a non-U.S. person, a Form W-8 is requested at the time of application and is required to be re-certified every three years thereafter. If IB does not receive the W-8 or the account holder fails to re-certify the W-8 in a timely manner, then the account holder is presumed to be a US person and, absent a W-9, may then be subject to back-up withholding taxes on interest, dividends and substitute payments in lieu, as well as gross proceeds.
By certifying yourself as a non-U.S. person through a properly completed W-8, your U.S. withholding is limited to dividends issued by US corporations. Note that virtually all countries apply withholding taxes when local companies seek to distribute dividends to externally based shareholders (whether those shareholders are corporate or not). The rate at which IB is obligated to withhold for a given payment depends largely upon whether there is a tax treaty in place between the country where the dividend paying country is based and the country of residence of the dividend recipient.
Funding for IB INR Accounts
Overview:
Interactive Brokers provides IB India INR account holders the ability to deposit and withdrawal both cash and positions via a tool made available through the secure Account Management application and may be accessed via the Funds Management within the Cash Transfers page.
INR IB INDIA DEPOSIT TYPES
The deposit notification allows IB to efficiently identify your incoming funds for proper credit to your account. It also provides detailed banking instructions for your specific deposit method.
Cheque Deposits:
Cheques are the most common method of payment and accounts for about 90% of the payments in India.
Please note Cheque deposits should be made payable to:
Interactive Brokers (India) Private Limited
Mail to: Interactive Brokers (India) Private Limited
A-605, Dynasty Business Park
151 Andheri Kurla Road, Andheri East, Mumbai 400059 India
National Electronic Funds Transfer (NEFT/Wires):
This is an account-to-account batch based electronic settlement mechanism using a deferred net settlement method.
Real-Time Gross Settlement (RTGS/Wires):
RTGS is a payments mechanism where inter-bank payment instructions are settled real time. RTGS are used for transactions above 100,000.00 INR. The wire instructions are as follows:
Beneficiary Bank Account Name: Interactive Brokers (India) Private Limited
Beneficiary Bank Account Number: 030-251318-902
Beneficiary Address: A-605, Dynasty Business Park
151 Andheri Kurla Road, Andheri East, Mumbai 400059 India
Beneficiary Bank: Hongkong and Shanghai Banking Corp (HSBC)
HSBC’s Bank Code: HSBC0400002
Further Credit to: Your IB account number/Your IB account title
DEPOSIT RESTRICTIONS/HOLDS:
Cheque Deposits:
There is a 7th business days hold available on the 8th business day with the exception of Bank Cheques which are guaranteed and credit immediately. For a check to quality as a Bank Cheque the cheque must contain one of the following descriptions: Treasurer’s Cheque, Cashier’s Cheque, Teller’s Cheque, Banker’s Cheque or Official Cheque.
Wire Deposits (NEFT/RTGS):
These deposits credited to your account immediately upon arrival. Funds may not be withdrawn for 3 business days following receipt.
To make a withdrawal of funds, complete a withdrawal request on the Cash Transfers page in Account Management/Funds Management. The first cash withdrawal in any one month is free. A fee will be charged for each additional withdrawal. A withdrawal request will be processed only if the customer has sufficient available funds and equity in excess of the initial margin requirement. Available funds are defined as the lower of trade or settlement date funds. If a withdrawal request is rejected, the customer may re-enter the withdrawal request once there are sufficient funds and equity in excess of the initial margin requirement. In accordance with anti-money laundering regulations, all withdrawals will be sent in the name of the account holder.
INR IB INDIA WITHDRAWAL TYPES
Detailed withdrawal instructions are provided when sending funds from your IB account.
NEFT Bank Wire Transfer:
Requests submitted by 14:00 ET will be sent 18:00 ET, under normal circumstances. Funds normally credit one or two business days, depending on the time of settlement.
RTGS Bank Wire Transfer:
Requests submitted by 14:00 ET will be sent 18:00 ET, under normal circumstances. Funds normally credit one or two business days, depending on the time of settlement. This transfer system is only for transactions greater than 100,000 INR
RTGS Broker Wire Transfer:
Requests submitted by 14:00 ET will be sent 18:00 ET, under normal circumstances. Funds normally credit one or two business days, depending on the time of settlement. This transfer system is only for transactions greater than 100,000 INR
TRANSFER OF ASSETS:
Stock Transfer Form:
Fill-out and fax the Transfer of Assets form to 00852-2509-4102 (Hong Kong)/0041-41-726-9599 (Zug) or attach a scanned document by setting up a ticket message via Account Management-Message Center. Assets transfers have a 2 to 5 business day turn around.
INR INTEREST RATES:
Benchmark Rate: India SBI Prime (Prime lending rate of the State Bank of India)
Use cases where assistance with system access is required
Overview:
Please click on the use case below which best describes your login issue for guidance as to how to proceed:
I. No Access to Account Management or TWS
1. I forgot my User Name and/or password
2. I am temporarily without possession of my security device
3. My security device is lost or damaged
4. My temporary passcode has expired
5. My on-line security card has expired
II. Partial Access (Account Management only)
1. I am able to log into Account Management with my temporary passcode but not the trading platform
III. Full Access to both Account Management and TWS
1. I am in possession of my security device and wish to activate it.
For security purposes, all requests for assistance with a User Name and/or password must be initiated via telephone and require prior verification of the caller’s identity. Click here for a list of IB’s regional Customer Service center contact numbers.
If you are temporarily without possession of your security device, interim access may be provided by contacting your regional Customer Service center via telephone where, once your identity has been verified, you will be provided with a temporary passcode.
This temporary passcode is a static alpha-numeric code which replaces the random code supplied by your security device and which will provide full access to both Account Management and the trading platforms for 2 days. Should a lengthier period of interim access be necessary and to obtain enhanced protection, it is recommended that you use the temporary passcode to log into Account Management and print out the on-line security card which will operate as a replacement to your security device for up to 3 weeks.
After the expiration of the temporary passcode or on-line security card, or if you regain possession of your security device beforehand, you will need to log into Account Management and select the menu option to re-activate your security device.
In the case of a lost or damaged security device, you will need to contact our Customer Service center to arrange for a replacement and to provide for interim access. As the time frame for shipping a replacement device may range form 3 to 14 days depending upon your country of residence, interim access is provided via an on-line security card. The on-line security card may be retrieved for printing or saving as an image to your desktop once a temporary passcode has been provided for Account Management access.
The temporary passcode is intended to provide full access to both Account Management and the 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 Account Management for an additional period of 10 days. The Account Management access, however, is limited solely for the purpose of printing or saving the on-line security card.
If your window of access to Account Management using the temporary passcode remains, you may print or save the on-line security card through which full access to both Account Management and the trading platforms is provided for a period of 21 days. If you are unable to log into Account Management, you will need to contact your regional Customer Service center for assistance.
The on-line security card is intended to provide full access to both Account Management and the trading platforms for a period of 21 days. This time frame, while limited, is intended to provide sufficient opportunity for the account holder to either regain possession of a temporarily unavailable security device or request and receive a replacement device.
If you are unable to log in using the on-line security card, you will need to contact your regional Customer Service center for assistance and to provide information as to the status of your permanent security device.
If your window of access to Account Management using the temporary passcode remains, you may print or save the on-line security card through which full access to both Account Management and the trading platforms is provided for a period of 21 days.
If you are unable to log into Account Management, you will need to contact your regional Customer Service center for assistance.
To activate either a replacement device or one which was temporarily unavailable and which required issuance of a temporary passcode, you will need to log into Account Management and select the reactivate security device menu option. Once reactivated, neither the temporary passcode nor on-line security card will remain operable.
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.
Links:
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 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.
