Adding a second user for an individual account holder
Overview:
Individual account holders have the ability to add multiple users to their IBKR account. The account holder may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API). The account holder may also provide access to up to 5 (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement. In addition, each of these individuals may also be provided with a second user access. A second user of an account cannot be provided with funding rights. All other power of attorney users may have funding access if granted by the account holder.
In each case, the additional user will be assigned a unique user name which is required for log in both to Client Portal and the trading platform of choice. Procedures for adding a second user account for access by the existing account holder are outlined below (search KB1001 for procedures for adding non-employee users).
Background:
Procedures for adding a second (account holder) user are as follows:
- Log into Client Portal.
- Click the User menu (head and shoulders icon in the top right corner) followed by Manage Account.
- The Users & Access Rights panel is displayed to the right in the Configuration column and shows all of the users that you have added to your account.
- Click the Configure (gear) icon to open the Users & Access Rights screen.
- Click on the Add "+" icon next to Users. You will be presented with the Add Users page where you will need to specify the new user name and the password you wish to use for the new user name.
- Select Yes for the secondary user, since you are creating this user as a secondary username.
- Click on the Continue button.
- Verify details and click on the Continue button.
- If you do not participate in the Secure Login System for two-factor authentication, you will receive an email with a confirmation number. Enter the confirmation number sent to you via email, then click Continue. If you have not received a confirmation number, click Request Confirmation Number to have a new confirmation number sent to your email address.
- Click OK to save the new user, which the primary account holder can now use as a secondary username.
IMPORTANT NOTES:
1. In accordance with market data vendor requirements, market data services are user-specific and any username subscribed will be assessed a separate market data subscription fee.
2. Account holders may delete a 2nd user account by clicking on the Delete link next to the user name located within the Users & Access Rights section.
Links:
Free of Payment (FOP) Transfers
Overview:
Free of Payment (FOP) is term used by IB to refer to a process of transferring long US securities between IB and another financial institution (e.g. bank, broker or transfer agent) through the Depository Trust Company (DTC).
The FOP transfer method is often used when:
1. The delivering form is not a DTC ACAT (Automated Customer Account Transfer) Participant.
2. The customer would like to expedite the delivery of their securities. The processing time frame for securities transferred via FOP may, in certain instances, be less than that associated with an ACATS transfer.
The following steps are to be followed in order to create a FOP notice:
1. Log into Account Management.
2. Select Funding or Funds Management and then Position Transfers.
3. From the drop-down list, select the Transfer Method: Free of Payment.
4. Select the applicable transaction Type: Deposit or Withdraw.
5. In the case of a FOP Withdrawal, the steps are as follows:
- Select the Destination to whom the securities are being transferred.
- Enter your account number of the Third Party Broker Acount Information.
- Specify the security (Stock, Warrants or US Bonds).
- Enter the Symbol, Shares and the Exchange (optional) and click Add.
- Provide your electronic signature authorizing the transfer request and clicking on the Continue button.
- Verify your identity by entering your password and clicking on the Confirm Request button;
- If your account is enrolled in the Secure Transaction Program (STP), the processing of your request will take place once you enter your confirmation code and click on the Confirm Request button. If not STP enrolled, your request will be subject to security verification, requiring that you contact our Customer Service Center to validate your identity and request.
6. In the case of a FOP Deposit, the steps are as follows:
- Select the Source to whom the securities are being transferred.
- Enter your account number of the Third Party Broker Acount Information.
- Specify the security (Stocks, Warrants or US Bonds).
- Enter the Symbol, Shares and the Exchange (optional) and click Add.
- Provide your electronic signature authorizing the transfer request and clicking on the Continue button.
- A printable version of the FOP request is made available should your transferring firm require an authorization form.
7. Transfer requests are typically completed within five business days.
IMPORTANT NOTE:
While IB does not assess a fee to process FOP transfers, other firms may and we therefore recommend that you confirm with the contra-firm their policies in this regard prior to submitting a request. In the event a contra-firm does charge a fee to IB, the fee will be passed to the IB account holder.
Glossary terms:
Adding (non-employee) users to an individual account
Overview:
Individual account holders have the ability to add multiple users to their IBKR account. The account holder may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API). The account holder may also provide access to up to 5 (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement. In addition, each of these individuals may also be provided with a second user access.
In each case, the additional user will be assigned a unique user name which is required for log in both to Client Portal and the trading platform of choice. Procedures for adding a (non-employee) individual user are outlined below (search KB1004 for procedures for adding a second user for an individual account holder).
Background:
Procedures for adding a non-employee user are as follows:
- Log into Client Portal.
- Click the User menu (head and shoulders icon in the top right corner) followed by Manage Account.
- The Users & Access Rights panel is displayed to the right in the Configuration column and shows all of the users that you have added to your account.
- Click the Configure (gear) icon to open the Users & Access Rights screen.
- Here there are two panels: the Users panel shows those individuals added to your account, as well as their relationship to the primary account holder; the User Roles panel shows all user roles that you have created.
- Add, edit, or delete Users using the set of icons to the right.
- The process of adding a user and assigning access rights is divided into several screens. When you complete each screen, click Continue to advance to the next screen. If you want to make changes to a previous screen, click Back.
- On the first screen, enter information about the user, including the username, password, name, relationship to the primary account holder and email address.
- On the next screen, select a user role, if you have saved any. User roles automatically apply a set of previously configured access rights to the new user. If you do this, you can skip any additional screens and continue to the review screen.
- Each screen that follows lets you give the new user rights to access a specific group of functions. On each screen, grant access to functions by clicking the box next to each one.
- The last screen in the process lets you review all of the information about the new user, including access rights. Rights that have been assigned to the new user are shown checked and in green; rights that have not been assigned to the new user are shown crossed out. Click Continue if everything is correct. Click Back to make changes.
- If you do not participate in the Secure Login System for two-factor authentication, you will receive an email with a confirmation number. Enter the confirmation number sent to you via email, then click Continue. If you have not received a confirmation number, click Request Confirmation Number to have a new confirmation number sent to your email address.
- Click OK to save the new user, which will appear in the Users & Access Rights panel.
IMPORTANT NOTES:
1. In accordance with market data vendor requirements, the primary user on the account will be assessed a separate market data subscription fee for each user account added.
2. Account holders may delete a user account by clicking on the delete link next to the user name located within the Users & Access Rights menu options.
Links:
How do I add a second user to my Friends and Family master account?
While technically, Friends and Family accounts can have more than one user, there cannot be more than one trader. The second user can access all other functions.
The second user on a Friends and Family master account is designed to accommodate an API connection.
Transfer on Death
Transfer on Death is a form of account registration which allows individuals to pass the assets in their IBKR account directly to another person or entity upon their death without having to go through probate. This registration option is solely available to individual accounts held by US residents (no joint or IRA accounts).
To elect this option, eligible account holders will need to do the following:
1. Log in to Client Portal and User menu (head and shoulders icon in the top right corner) followed by Settings. Next select Account Inheritance under the Account Configuration section.
2. You will need to specify your Primary Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%)
3. You may elect to specify your Contingent Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%). If you do not elect any Contingent Beneficiaries you will need to specify how you wish the interests of any Primary Beneficiaries that predecease you shall be treated (either pass back to the account holder's estate or pass to the remaining Primary Beneficiaries).
4) In the event any Primary or Contingent Beneficiary is a minor you will be required to designate an authorizer signer.
5) You will then be provided with a link to a pre-populated Transfer on Death Agreement which requires formal signature and notarization. Instructions are also provided for submitting the form. If the account holder is married and living in a community property state, spousal consent is required if the spouse is not named as the primary beneficiary (it is the responsibility of the account holder to make this determination).
6) Once the agreement has been returned and reviewed for approval, the registration will be complete and the account title amended (e.g. Jane Doe, TOD). Statements will also reflect this new account title.
7) Account holders may remove the TOD request prior to approval or revoke once approved (both via online option). A new agreement will need to be completed, signed and returned prior to the revocation becoming effective. In order for a revocation request to be effective, it must be received and approved by IBKR prior to the account holder's death.
8) In the event of the death of the account holder, surviving family, heirs, beneficiaries or executors should notify IBKR Client Services via email to:
- estateprocessing@interactivebrokers.com (for US accounts).
Upon receipt of a certified death certificate, IBKR will commence estate processing to determine appropriate distribution of assets. The process varies based upon account type, jurisdiction and other factors. Processing instructions will be provided to verified estate administrators, heirs or beneficiaries.
How to deposit funds via bank wire transfer
To make a wire deposit to your account you will first need to provide a deposit notification through Client Portal. Once logged in to Client Portal, select the Transfer & Pay and then Transfer Funds menu options. From there you will select "Make a Deposit" followed by the Deposit Method of "Bank Wire". Click the "Get Instructions" button to get started.
You will then be prompted to input your delivering bank details including deposit amount, currency of denomination and sending institution. Once that information has been input you will be provided with all the details (e.g., ABA number, Swift BIC Code and bank account number) in a printable form which you, in turn, can provide to your bank in order for it to initiate the wire transfer.
Please note that creation of this notification is essential as the details necessary for your bank to wire funds vary by the currency in which the wire is denominated. In addition, this notification also serves to ensure that the funds are properly matched to your account immediately upon arrival.
Should you have further questions, please contact one of our Client Service Centers. Contact numbers and hours of operation may be found through the following website link: http://individuals.interactivebrokers.com/en/index.php?f=1560
Links:
Availability of proceeds in a 'Cash' type account
Accounts which have been set up as a 'Cash' type do not have access to the proceeds from the sale of securities until such time the transaction has settled at the clearinghouse and proceeds have been issued to IBKR. Securities settlement generally takes place on the third business day following the sale transaction. Providing access to the funds prior to settlement would constitute a loan, a transaction which is precluded from taking place within this account type.
The one exception is under the Free-Riding rule. Clients with a cash account can use the proceeds from the sale of a security to purchase a different security under the condition that the second security is held until settlement of the initial sale. If the client sells the second security prior to settlement of the initial trade, they will be in violation of the Free-Riding rule and will be locked for 90 days from utilizing this exception.
Account holders who wish to have access to settled funds prior to the settlement day may do so by electing an account type of 'Margin'. Under this account type unsettled funds may be used for trading purposes but may not be withdrawn until settlement. Account holders maintaining a 'Cash' account may request an upgrade to a 'Margin' type account by logging in to Client Portal and selecting the Settings > Account Settings menu item and Account Type from the Configuration panel. Upgrade requests are subject to a compliance review to ensure that the account holder maintains the appropriate qualifications.
Links:
Updating Financial Information
Overview:
IBKR requires that clients provide through the application process financial information, including:
- Investment objectives and intended purpose of trading
- Investment experience (by product type)
- Financial qualifications (e.g., net worth, liquid net worth and annual income)
Clients are also obligated to promptly notify IBKR of any changes and may do so through Client Portal.
Background:
Clients may update their financial information by logging in to Client Portal and selecting the Settings > Account Settings menu option. Note that any changes made to this information is subject to a Compliance review to ensure that account permissions remain suitable.
I have received notice that the Non-Individual Taxpayer Identification Number (TIN) on my IBKR account does not match that of the IRS. What do I need to do?
Why Your TIN May Be Considered as Incorrect
If you are a non-individual, such as a corporation, LLC, partnership, trust or similar entity, your TIN will usually be your Employer Identification Number (EIN). Often a non-individual taxpayer EIN does not match IRS records because you have provided IBKR with a “Doing Business As” name rather than the “Legal Name”. Similarly, the EIN will not match if it is not the number of the actual owner of the account (e.g. you have provided IBKR with the SSN of a partner rather than the EIN of the partnership).
What You Need to Do
You will need to compare the name and EIN per your records (e.g. recent business tax return) with the name and TIN on your IBKR account. Information regarding your IBKR account including a form for updating your information will be made available upon log in to Client Portal. This comparison will require that you take one of the four actions outlined below. If you have any questions regarding your name and/or TIN as recognized by the IRS, please call the IRS Business and Specialty Tax Line at 1-800-829-4933 for assistance.
1. If the name and EIN on your account agree with the name and EIN per your records – Write the Internal Revenue Service Center where you file your income tax return and ask the IRS to send you a Letter 147C. This letter will confirm the name/TIN combination the IRS has on file for you. Once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address.
2. If the EIN on your account is different from the EIN through which you submit your business tax returns, but the name is the same - Update your EIN through the form made available upon log in to Client Portal. You do not need to contact the IRS.
3. If the name on your account is different from that through which you submit your business tax returns, but the EIN is the same on both
a. If the name on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address;
b. If the name per the IRS records is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS.
4. If both the name and EIN on your account are different from the name and EIN through which you submit your business tax returns
a. If the name and EIN per the IRS records is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS;
b. If the name and TIN on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address.
Links:
How can I discontinue the issuance of duplicate copies of my trade confirmations and statements to my former employer?
In order to effect this change you will first need to update your employment by logging in to Client Portal, selecting the Settings > Account Settings menu and clicking the Configuration (Gear) icon next to Regulatory Information. From there you may modify your personal information including employment. If the nature of your prior employment also involved membership in an exchange, regulatory or self-regulatory organization or you were an associated person, affiliated person or employee of an exchange member. If these no longer hold true, you will need to change your answer to this question as contained within the Regulatory Info menu option also contained under Account Information.
Finally, please instruct your former employer to send an email to newaccounts@interactivebrokers.com in order to independently confirm this request to discontinue sending duplicate statements. If your new employer is also a financial institution which, for in-house compliance purposes and/or as a result of regulatory mandate monitors the trading activities of their employees, they will need email a request to newaccounts@interactivebrokers.com in order to receive duplicate statements and trade confirms.
