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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.

IMPORTANT DISCLAIMER ABOUT CORPORATE ACTION INFORMATION PROVIDED BY IB

Information regarding corporate actions (i) is compiled by IB on a best efforts basis from information IB received from third party vendors; (ii) may contain errors or omissions; and (iii) is subject to change without prior or additional notice. IB does not warrant that the information provided is accurate, timely, or complete. Corporate action information is intended for only IB Clients, and it does not constitute a recommendation or advice by IB, and IB Clients may not rely upon it. IB Clients are urged to verify the information prior to using it in their investing and trading decisions, including through reference to independent financial news resources.

If a dividend or split is declared on a stock I have a position in, will IBKR automatically adjust my working stop orders accordingly?

IBKR does not automatically adjust existing orders after the ex-dividend date on stocks which have declared an ordinary dividend. On the other hand, IBKR will automatically cancel existing orders when the following conditions have been met:

  • If a corporate action on a security results in a stock split (forward or reverse), exchange for shares, or distribution of shares.
  • If you do not log into your IBKR account for 90 days.
  • At the end of the calendar quarter following the current quarter. For example, an order placed during the third quarter of 2011 will be canceled at the end of the first quarter of 2012. If the last day is a non-trading day, the cancellation will occur at the close of the final trading day of that quarter. For example, if the last day of the quarter is Sunday, the orders will be cancelled on the preceding Friday.
  • Orders that are modified will be assigned a new “Auto Expire” date consistent with the end of the calendar quarter following the current quarter.

Generally speaking, it is the client's responsibility to be aware of pending corporate actions and how such events will affect their outstanding orders and portfolio.

 

The average price shown for one of my positions in the Trader Workstation is incorrect.

Overview: 

 

Average trade prices may be susceptible to reporting error on the Trader Workstation, particularly in situations where a corporate action or position transfer takes place.  While this information is intended for advisory purposes only and such errors have no impact upon the account equity or any ultimate tax obligation of the account holder, this information is adjustable by the account holder.  To adjust the average cost of a particular security, open the Account Window within the Trader Workstation and scroll down to the Portfolio section. Select the asset in question from the Portfolio section and right click on it to display the drop-down window and the Adjust Average Price menu option. Enter the desired average price into the dialog box and click OK to update the Trader Workstation view.

What are the key dates relating to stock Dividends?

Overview: 

Key dates relating to stock dividends are as follows:

1. Declaration Date - date at which company's board of directors approves dividend payment and designates the Payment Date and Record Date.

2. Record Date - the date which determines which stockholders are entitled to receive the dividend payment. You need to own the shares as of the close of the Record Date in order to receive the dividend.

3. Ex-Dividend Date - the date on or after which the stock will be traded without the right to receive the dividend. Because most stock trades in the US settle regular way; that is, two business days after the trade, an individual must purchase the stock two business days before the Record Date to qualify for the dividend. The Ex-Dividend Date is therefore one business day before the Record Date.

4. Payment Date - the date on which the declared dividend is paid to all stockholders owning shares on the record date.

 

* Please note these key dates may be different for special dividends. Please reference KB 3043 for information regarding special dividends.

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.

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