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/Account Management 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: 

  1. Log into Client Portal/Account Management.
  2. Select the Settings and then Account Settings menu options.
  3. Click on the gear icon in the Users & Access Rights section.
  4. Click on the plus sign in the top right corner. You will be presented with the Add User page.
  5. 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.
    1. On the first screen, enter information about the user, including the username, password, name, relationship to the primary account holder and email address.
    2. 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.
    3. Each screen that follows lets you give the new user rights to access a specific group of functions, organized to match the main menu of Account Management: User Settings, Trading, Reporting, Funding and Account Settings. On each screen, grant access to functions by clicking the box next to each one.
  6. 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.
  7. 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.
  8. Click OK to save the new user, which will appear in the Users panel on the Users & Access Rights screen and in the Users & Access Rights panel of the Account Settings screen.

 

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 Account Settings and then Users & Access Rights menu options.

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 select the Settings and Account Settings sections and click the gear icon next to the words "Account Inheritance" in the 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 to IB's New Accounts department.  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, the beneficiary will need to complete and remit the notarized Transfer on Death - Beneficiary Distribution Form to IBKR along with a certified copy of the death certificate.  If the beneficiary does not already have an account with IBKR they will need to open one in order to transfer the percent of assets as indicated in the Transfer on Death Agreement.

Can advisors and other family accounts use WebTrader or MobileTrader?

Overview: 

Beginning approximately March 5, 2009, financial advisors and proprietary trading group accounts (otherwise known as STL - Separate Trading Limit) have the ability to access both the WebTrader and MobileTrader platforms.

 

Note:

Only single account allocations are supported at this time.  Orders cannot be entered using allocation groups or profiles.

Can advisors trade Mutual Funds?

Overview: 

Mutual Funds

Advisors have the ability to trade mutual funds on behalf of their clients by using either an allocation order or by direct allocating.

Can I be long and short the same underlying contract simultaneously?

Overview: 

IB does not offer this particular account structure.  While IB does offer stock and option trading in the same account as futures/commodities trading, there is no account structure here where traders can be short and long the same underlying contract simultaneously.

Background: 

This could occur if an account holder had more than one account.  For example, this account holder could short an XYZ June 2009 45 call in account UXXXXX1, and go long the same XYZ June 2009 45 call in account UXXXXX2.  However, if the account is short 1 XYZ June 2009 45 call in account UXXXXX1, and buys one June 2009 45 call in account UXXXXX1, this would close the short position. 

How can my employer get set up in order to receive duplicate copies of my trade confirmations and statements?

In order for an employer to be set up so as to received this information, you will need to have them prepare and email to newaccounts@interactivebrokers.com a Rule 407 letter which confirms your employment and which serves as their request to receive duplicate statements and trade confirms. Assuming that your employer is 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 should be familiar with the preparation and contents of this letter. 

You may also want to first verify with your employer whether they are a participant in the IBEmployeeTrackSM program which automatically identifies new IB accounts opened by employees and organizes into a single daily transmission the reports required for all.

 

Note that once established, this reporting cannot be terminated without confirmation from the employer that the delivery of statements and confirms is no longer required.

 

NOTE:

If this request is being driven by a change in the account holder's employment, the account holder should update their employment information within Account Management. In addition, if the account holder selects the Applicant Information and then Regulatory Information menu options within Account Management they will be presented with the following question:

Is the account holder or any immediate family member who resides in the same household, registered as a broker-dealer or an employee, director or owner of a securities or commodities brokerage firm?

Answering 'Yes' to that question will prompt a series of questions and generate a sample Rule 407 letter.

Is there a way in TWS that I can prevent myself from making trades that cause my cash balance to go negative?

Overview: 

There isn’t a function in TWS that prevents account holders with margin accounts from making trades that cause their cash balance to become negative, which would then incur interest charges for a margin loan.  Traders would want to ensure that their cash balance always remained positive or open a cash account.  Negative cash balances are disallowed in cash accounts and orders that would cause the cash balance to go negative should be rejected by the system.

How do I convert my advisor client account to an Individual IB account?

Overview: 

Due to varying reasons, some clients of advisors no longer want their account to be managed by a Financial Advisor, but they wish to maintain an individual account at IB.

Information:

To transfer an FA Managed account to an Individual IB account, you must create a new Individual account where all aspects of the new account match those of the existing account (titles, tax ID's, trading permissions). Once the new account is approved, log into the old account's Account Management, select Funds Management -> Internal Transfers.

 

Note

  • Only Cash can be internally transferred from an FA managed account to an Individual IB account.  IB does not currently provide a facility for performing an internal account transfer when moving from an FA managed account to an individual account.

Can an advisor client account trade for himself/herself?

Overview: 

By default, client accounts do not have Trading Access and cannot sign into TWS or WebTrader. They are limited to Advisor Portal where they can view Statements and Trade Confirmations, as well as perform account administration tasks. However, there are occasionally requests by advisors that a client be given the ability to trade their own account.

Information:

There is a feature that allows the Advisor to give Trading Access to his Clients. This can be enabled by the Advisor in Advisor Portal in the Manage Clients section followed by Trading and Configuration. The Client would then need to subscribe to market data if they desire and would be able to trade only his/her own account.

Working orders would be accessible by either the client or the advisor.

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