Why am I required to disclose my employment with a financial institution?
FINRA Rule 3210 requires applicants associated with a member firm (Employer Members) to obtain the written consent of the Employer Member prior to opening an account with IBKR (Executing Member). The rule also requires persons to notify IBKR of their association with the Employer Member. IBKR may also be subject to similar non-US regulations.
Applicants employed by or affiliated with another broker or financial institution may be required to submit a document containing the contact information of their employer organization in order for IBKR to provide transaction data to the employer firm upon request. If the applicant is employed with a financial institution and no document is submitted, IBKR may contact the applicant in order to confirm that FINRA Rule 3210 does not apply.
Can I customize my User Name?
Overview:
As the User Name is the principal factor for identifying accounts upon log in, by definition, no two accounts can share the same User Name. IB enforces this constraint at the point of application by allowing the applicant to define the first 5 characters (lower-case letters) of the User Name and randomly assigning three trailing numbers which are then appended to the applicant-defined characters. Allowing the applicant to select these leading 5 characters is intended to strike a balance between enforcing unique User Names and providing a User Name that is easy to remember.
The User Name is required for log in to all account applications including Account Management, WebTrader and TraderWorkstation. Once established, the User Name cannot be changed and will remained associated with the account throughout its life.
How do I find out about the status of my account application?
Go to IBKR.com/app-status to log in to check the status of your application.
To speed up the review process, please take advantage of the recommendations below.
- Fund your application to prioritize its review. If for any reason your application is not approved, the funds will be promptly returned.
- Log in and verify that you have submitted all of the necessary documentation, as this is the most common reason for a delay.
- Please check the email address on the application regularly for any emails from our Compliance team. They will contact you via email if additional documentation and/or clarification is needed once the online portion of the application is complete.
- Once all documentation has been submitted and accepted, please allow time for the completion of the due diligence checks and application review.
Margin oversight for U.S. listed securities & commodities products
The particular regulation which determines the minimum amount of margin collateral that each broker is required to collect from clients transacting in U.S. exchange listed products generally depends upon the following 3 factors:
1. Product Classification - the principal determinant of regulatory oversight is based upon whether the product is classified as a security or commodity. Security products, including stocks, bonds, options and mutual funds are regulated by the Securities and Exchange Commission (SEC). Commodity products, which include futures contracts and options on futures contracts, are regulated by the Commodities Futures Trading Commission (CFTC). Single stock futures, a special class of futures contracts, are considered a hybrid product subject to joint regulation by the SEC and CFTC.
In the case of security products, the US central bank referred to as the Federal Reserve (FRB) holds responsibility for regulating the extension of credit by brokers and dealers. This is accomplished through Regulation T, or Reg T as it is commonly referred, which provides for establishment of a margin account and which imposes the initial margin requirement and payment rules on certain securities transactions. For example, on stock purchases, Reg T currently requires an initial margin deposit by the client equal to of 50% of the purchase value, allowing the broker to extend credit or finance the remaining 50%. Reg T does not establish margin requirements for securities options which fall under the jurisdiction of exchange rules (subject to SEC approval). In addition, the FRB has excluded from Reg T the authority to establish either initial or maintenance margin requirements on securities positions held in a portfolio margining account. here margin authority resides with the security exchanges whose rules are subject to SEC approval.
The authority for establishing margin rates on commodity products resides with the listing exchanges, with the exception of broad based stock index futures, for which the FRB has delegated authority to the CFTC.
In the case of single stock futures, margin is set by the listing exchange and subject to SEC approval to the extent the position is carried in a securities account, and subject to an agreement that the margin be equivalent whether held in a securities or commodities account. Margin for single stock futures are currently set at 20% of the underlying stock value.
2. Initial or Maintenance - initial margin generally refers to the amount of money or its equivalent that the customer must deposit in order to initiate the position and maintenance margin the amount of equity which must be maintained in order to continue holding the position. As noted above, Reg T controls the initial margin requirement on securities transactions. The rules of the listing exchanges specify the maintenance margin requirements on security transactions subject to SEC approval. The maintenance margin requirement for long stock positions is currently set at 25% although brokers often establish 'house margin' requirements in excess of that, particularly where the security is considered low-priced or subject to volatile price changes.
Commodities exchanges establish both the initial and maintenance margin requirements for products which they list (subject to provisions for broad based index futures and single stock futures as noted above).
3. Listing Exchange - as noted above, in the case of US securities products the listing exchange has the authority to establish rules for the maintenance margin requirement on positions held in a Reg T margin account and initial and maintenance margin (currently the same) for positions held in a portfolio margin account. Exchange margin rules, however, require prior SEC approval which acts to ensure that margin requirements are set in a consistent manner across exchanges.
Subject to the provisions noted above, commodities exchanges maintain authority to establish both initial and maintenance margin requirements. As a general rule, US commodities exchanges employ the same risk-based margining methodology referred to as SPAN for determining the margin requirement on listed positions with each exchange specifying the relevant SPAN input factors (e.g., Price Scan Range, Volatility Scan Range, Spread Charges, Combined Commodity offsets).
Tips for selecting your security questions and answers
The security questions represent just one component of the security framework which IB has put into place to protect your account. We offer the following simple tips for selecting your security questions and answers in order to make the most effective use of this security measure:
1. Choose questions having answers that you can remember in the future and answer consistently.
2. Use one-word answers whenever possible.
3. Be careful with spaces. If you use "San Diego" as an answer to one of your security questions, the system will reject "SanDiego."
4. Avoid using quirky or nonsensical answers as they'll likely to be difficult to remember later.
5. Select a question which cannot be easily guessed or researched, has many possible answers and where the probability of guessing the correct answer is low.
6. Select a question for which the answer is unlikely to be known by others such as a family member, close friend, relative, ex-spouse, or significant other.
7. Choose a question having an answer which is stable and not likely to change over time.
What is the purpose of the security questions?
IB requires applicants to select and provide answers to three security questions each selected from a separate pool of questions having varying degrees of complexity. In the event we receive a telephone inquiry involving sensitive information, prior to acknowledging or discussing any account specific information with the caller we will first look to verify that caller's identity. This is accomplished through a multi-tier security process, one tier which requires that the caller answer a randomly selected security question. The caller must provide an answer to the security question which exactly matches the answer we have on file. Otherwise, the request for information will be denied and a potential lock-down placed upon the account.
Am I required to fund my account prior to application approval?
While applicants are required to provide IBKR with notification as to the amount they intend to fund their account with and the manner in which they fund the account in order to have the application considered for approval, there is no requirement that the funding actually take place prior to approval.
Applicants may nevertheless elect to remit funds via wire, check or electronic funds transfer (e.g., ACH, EFT) prior to receiving confirmation of account approval in an effort to accelerate commencement of any credit hold period. It should be noted, however, that deposits received prior to account approval are held in suspense and are not credited to the account nor eligible to accrue interest until the application has been approved. In the case where the applicant has authorized IBKR to fund the account via asset transfer (e.g., ACATS, ATON) from another broker, IBKR will not initiate the transfer until the application has been approved.
Overview of Secure Login System
Table of contents
- Benefits of Enrollment
- How to enroll
- Lost, Damaged or Temporarily Unavailable Device
- Types of Devices
- Withdrawal Limits
The security of your assets and personal information is of utmost concern to us and we are committed to taking the steps necessary to ensure you are protected from the moment you open your account.
To provide you with the highest level of security, Interactive Brokers has implemented a Secure Login System (SLS) through which access to your account is subject to Two-Factor Authentication.
Two-Factor Authentication serves to confirm your identity at the point of login using two security elements: 1) Something you know (your username and password combination); and 2) Something you have (an IBKR issued security device which generates a random, single-use security code). As both knowledge of your username/password and physical possession of the security device are required to login to your account, participation in the Secure Login System virtually eliminates the possibility of anyone other than you accessing your account.
Benefits of Enrollment
The principal benefit of SLS enrollment is to protect your account from unauthorized access. There is no fee associated with enrollment and participants have the added benefits of:
- Higher withdrawals thresholds over both single and five day rolling periods.
- Ability to change your banking instructions and email address without contact from a member of our Security Team.
- Ability to effect ACH & EFT funding transactions beyond an initial USD 20,000 account funding transaction.
- The ability to share a single device among multiple usernames registered to the same individual.
How to Enroll
Enrollment is easy. If you are a new applicant, you will be asked to confirm your mobile phone number to continue. This will enable two-factor security through SMS mobile phone messaging. IBKR will send you a one-time passcode upon login.
The SMS mobile two-factor authentication is temporary and will be removed once you activate the IBKR Mobile Authentication (IB Key), as explained in the IBKR Knowledge Base.
If you are a new or existing Client with equity above $1,000,000 you may request a Digital Secure Card+ (DSC+) as a complementary device to your IBKR Mobile Authentication (IB Key), as explained here. Once you have received your DSC+ device, log in to Client Portal and follow the instructions here to activate it.
Once your security device or digital security app is activated, each time you log in to Client Portal, TWS or IBKR Mobile, you will be required to enter two authentication factors – your username and password combination and the security code generated by your device. When you successfully log in, your account will be secured with full perimeter coverage, protecting both your cash and positions from unauthorized access."
Lost, Damaged or Temporarily Unavailable Device
In the case of a lost, damaged or temporarily unavailable security device, you will need to contact your regional Client Service Center via telephone to arrange for a replacement and/or to provide for interim access. Once your identity has been verified you will be provided a temporary passcode (i.e., a static alpha-numeric code which replaces the random code supplied by your security device) that will allow you to log into Client Portal and print the on-line security card. The on-line card will provide interim access for up to 21 days, sufficient time for a replacement device to be shipped or, should your device be temporarily unavailable, time to regain possession of it. See the IBKR Knowledge Base for instructions on requesting a replacement device.
Alternatively, if your mobile phone number has already been verified with IBKR, you can activate the IBKR Mobile Authentication (IB Key) to provide your account with an immediate two-factor protection.
Types of Devices
IBKR provides a range of security devices, each tailored to meet the portability and security needs of your particular account.
- SMS - A quick and easy way to complete the Two-Factor Authentication through text messages (SMS) sent to your mobile phone number.
- IBKR Mobile – An all-in-one mobile app offering a convenient digital solution for your Two-Factor Authentication needs. The IBKR Mobile Authentication (IB Key) module found within the app supports both fingerprint/facial recognition and PIN configuration1 and is available for both Android phones and iPhones.
- Digital Security Card+ - For accounts with an equity of $1M USD or equivalent. It has the same size and shape of a credit card and it is electronic, requiring the user to enter a PIN code as an additional layer of protection.
Note:
For iPhone users you must have either Touch ID, Face ID, or Passcode enabled (refer to: Set up Touch ID or Set up Face ID for directions). Touch ID or Face ID is the recommended choice. PIN/Passcode supports up to 12 hours of trading access while fingerprint/facial recognition allows for 30+ hours as long as you authenticate at least once during this time period. Please see further details mentioned in our User's guide for Extended Trading Access.
Withdrawal Limits
Clients who participate in the Secure Login System enjoy enhanced withdrawal capabilities, while clients who do not participate are subject to daily and weekly withdrawal restrictions. The amount that a participating client may withdraw or transfer over a given one- or five-day period increases commensurate with the protective value of the device and is outlined in the table below.
| Security Device | Maximum Withdrawal per Day | Maximum Withdrawal in 5 Business Days |
|---|---|---|
| None | 50K USD | 100K USD |
| SMS | 200K USD | 600K USD |
| IBKR Mobile Authentication (IB Key) | 1M USD | 1M USD |
| Security Code Card* | 200K USD | 600K USD |
| Digital Security Card* | 1M USD | 1.5M USD |
| Digital Security Card+ | Unlimited | Unlimited |
| Platinum*/Gold* | Unlimited | Unlimited |
Note: * Represents a legacy device no longer being issued.
Additional Information
See KB2636 for information and procedures related to Security Devices.
See KB2277 for complete details on IBKR Mobile Authentication (IB Key) for Android.
See KB2278 for complete details on IBKR Mobile Authentication (IB Key) for iOS.
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.
Application Assistance - Registration Confirmation Number
The Registration Confirmation Number is a random numeric code sent to the applicant's email address which serves to register the email address as valid once the number has been retrieved and entered into the application. Failure to receive the email containing this number can generally be attributed to one of two causes:
1. Service Provider Delay - Most email messages are delivered within a few minutes, although messages can sometimes be delayed as they move from point to point to their ultimate destination, the recipient’s email client. Once the email containing the Registration Confirmation Number is sent from the IB mail server it is tracked to ensure it reaches the mail server of the recipient’s service provider, however, IB is unable to track status beyond that point. Most cases of delayed email are due to slow or overloaded mail servers and in rare instances delays can last for several hours or more.
2. False Spam Detection – most service providers have spam filters and other checks they run on incoming emails and oftentimes legitimate messages can inadvertently be flagged as spam. The techniques used to block email traffic that is judged extremely likely to be spam vary by provider and as a general rule are not disclosed..
If, after a reasonable time, you fail to receive this email, the first step should be to review and ensure that the email address you’ve provided has been entered correctly. This address is displayed on the application page where token entry is required and if incorrect, simply re-enter the correct address on that page. If that address is correct you may wish to request that another Registration Confirmation Number be sent by clicking on the Request Confirmation # button.
If the problem persists, check the Junk or Spam folder in your email account. Most service providers also allow users to create a White List of contacts that the user deems as acceptable for delivery of messages to the In box. This can typically be accomplished by adding the following IB address to your Contacts List: help@interactivebrokers.com and then requesting another Registration Confirmation Number.
Should that step all fail, you may wish to contact your service provider and inquire as to the status of their mail server and whether they have a block in place on the IB mail address. If your ISP cannot provide a satisfactory answer to your inquiry, we recommend that you use an alternate email account to resend the email. You may then subsequently change your email address at a later date.
