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  Under this account type unsettled funds may be used for trading purposes but may not be withdrawn until settlement.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.

 

Are the proceeds from a closing stock sale made available immediately to my account?

IBKR allows account holders to designate and maintain their account as either a 'Margin' or 'Cash' type of account at the point of application.  If one maintains a 'Margin' type account, the proceeds from closing stock sales are made available for trading effective with the sale transaction. However, the account holder may not withdraw those funds from the account until such time as settlement has taken place and IBKR has been credited with the proceeds from the clearinghouse (generally 3 business days).

If one maintains a 'Cash' type account, proceeds from closing stock sales are not available for trading or withdrawal until settlement has been completed. To provide otherwise would constitute an extension of credit which is prohibited from being offered to 'Cash' accounts.

Click here for information on upgrading from a 'Cash' type account to a 'Margin' type account.

What does the 'Pending Advisor' status mean next to my withdrawal request?

概観: 

In the Transaction History section of Client Portal, client accounts who are logged in and have requested a withdrawal, may see the status as 'Pending Advisor'.

Information:

In the advisor structure, client accounts can request withdrawals by logging in to Client Portal just as any individual account would.  Once a withdrawal request is made by a client account, the advisor must consent to the request.  If the Advisor does not consent to the request, the withdrawal will still be processed, but there will up to be a three business day delay.

Advisor Steps to Confirm:

Once a withdrawal request has been submitted by a client account, the advisor will receive an email notification, stating that a client has requested a withdrawal.  In order to consent, the advisor must log in to Advisor Portal and navigate to Manage Clients then Dashboard and the Pending Items tab.  The advisor would then click the 'Consent' button in order to expedite the processing of the pending withdrawal.

Note about hold periods:

In order to ensure the timely processing of client initiated withdrawal requests, the hold period for withdrawals where the amount of the request is greater than 80% of the amount available for withdrawal, will be held until consented to by the advisor or 3 calendar days, whichever comes first.  For amounts representing less than 80% will be held until consented to by the advisor or the next business day.

These holds are in place to ensure that your advisor is aware of your withdrawal request and is afforded time to make funds available if necessary.

How do I transfer US Securities to IB from another broker?

概観: 

Broker to broker transfers for US securities are conducted via a process known as the Automated Customer Account Transfer Service (ACATS).  This process generally takes between 4 to 8 business days to complete in order to accommodate the verification of the transferring account and positions. The request is always initiated by the receiving broker.  Please note that brokers generally freeze the account during this period to ensure an accurate snapshot of assets to transfer and may restrict the transfer of option positions during the week prior to expiration.

FAQS 

What does the ACATS system enable my broker to do?
The NSCC's ACATS system enables your broker to enter, review, and settle account transfers in a fully automated system.
How long does an ACATS usually take?
Under normal circumstances, an ACATS should take between four to eight business days. With some circumstances, such as an attempt to transfer unsettled funds, positions that are not paid in full, or restricted stock shares, this process could take longer.
Should I wait for my IB account to be approved before electing to fund it via ACATS?
No. In order for your application to be considered for approval, you must specify a funding election.  Note, however, that IB will not initiate your ACATS reqquest until such time as your account has been approved.
How do I initiate an account transfer that IB will receive?
The ACATS feature is available under Account Management. Choose the Funds Management and then Position Transfers menu options. After selecting the ACATS - US Broker Transfer method, you will be prompted to specify whether the transfer is full or partial, the delvering broker and, if partial, the positions to be transferred.
What if my current brokerage firm is not listed on the delivering firm dropdown menu?
The dropdown menu is a listing of Clearing Firms that are participants in the ACATS program. Not all firms are self-clearing. If you do not find your firm on the list, please contact one of their representatives to identify their clearing firm.
What products can I transfer?
Interactive Brokers accepts only products that are available for trading. Certain Fixed Income issues, Mutual Funds and Limited Partnership units are not eligible to be held in your Interactive Brokers account.
 

Can I transfer a Traditional IRA to a Roth IRA?
No. IRAs may only be transferred to the same type of IRA (i.e. Traditional to Traditional, Roth to Roth, etc.).  Also note that IRAs cannot contain any margin loans, short positions, or equity option positions.

 

Why does the system not recognize my SWIFT code?

概観: 

S.W.I.F.T  stands for Society for Worldwide Interbank Financial Telecommunication.  It is a non-profit organization comprised of member financial institutions.

Only SWIFT codes which are part of the SWIFT network are recognized as SWIFT codes.

Why do certain cash deposit and withdrawal requests require that an instruction be created while others do not?

概観: 

 

Whether or not an instruction is required is a function of both the transaction type (i.e., deposit or withdrawal) and its underlying method (i.,e. check, ACH initiated at IBKR or wire).  In general, if the deposit method dictates that IBKR pull funds directly from the client’s account or if the withdrawal method dictates that IBKR push funds directly to the client’s account, an instruction will be required in order to obtain the necessary account specific information and authorization to act.  Outlined in the chart below are the possible scenarios.

 

 

 

INSTRUCTION REQUIREMENTS BY TRANSACTION TYPE & METHOD (Yes/No)

 

Check

ACH – at Bank

ACH – at IBKR

EFT

Wire

Deposit

No

No

Yes

Yes

No

Withdrawal

No

N/A

Yes, if instruction is  created as  Debit/Credit, no  if  Credit only

Yes

Yes

 

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