FAQ for Singapore Interactive Brokers community Telegram Group

Disclaimer: These are FAQs which are maintained by people who are not affiliated to IBKR. For more up to date information, refer to the IBKR Knowledge Base.

IBKR SPECIFIC QUESTIONS

Technical Problems

Q) Why can’t I login to Interactive Brokers platform today?

A) Probably because you are logging in on Saturday late/morning and afternoon. IB does their weekly maintenance during this period.

Otherwise, look at this IBKR website for current system status.

Q) I am unable to login to TWS when I am logged in to the mobile app

This is intentional, there can only be one active session at any time.

Types of Accounts

Q) What are the differences between margin account and cash account?

Margin account

https://www.interactivebrokers.com/en/index.php?f=24176

Cash account

https://www.interactivebrokers.eu/en/index.php?f=1588&p=acctypes3

Depositing and Withdrawing Money

Q) How to transfer funds to and fro Singapore bank account and IBKR account?

https://investmentmoats.com/money/fund-withdraw-interactive-brokers-account/

Q) How do I fund a IBKR account as a Malaysian?

See this link.

Q) I have requested for a withdrawal but have not received the money. Why?

A) It depends on whether you requested for a withdrawal using GIRO or wire. Wire is faster, but will cost more than GIRO if you have used up your one free withdrawal via wire every month.

Q) I have transferred money into IBKR’s bank account but I don’t see it in my IBKR trading account. Why?

A) Transfer of money generally takes longer if you did it over the weekend or during non-working days.

Q) I did not receive the full amount when I requested for a withdrawal of funds. Why?

A) Withdrawal of funds especially for non-SGD currency into SG accounts will usually result in fees deducted when the funds are wired. These fees are not charged by IBKR but by the receiving banks.

Q) Funding or Withdrawing in USD without fees

To fund USD without fees, the recommended way is to use DBS Remit. No fees charged by outbound bank, nor is there fees charged by inbound bank.

Steps for using DBS to transfer into IBKR

Set up notification inside Ibkr that you are sending USD XXXX amount from account ABC.
IBKR will give you their USD bank account details.
Open DBS.
Select DBS remit.
Select sending currency USD.
Key in USD XXXX amount as what you input into step 1.
Select receiving currency USD. Very important to make sure both sides are USD. [More details on this in this telegram message]
Key in the bank account provided by IBKR.

Withdrawal of funds to DBS account

DBS charges 10 USD to receive inbound USD. No fees if you are a treasures customer

IBKR SG vs US

Q) How do I check what type of IBKR am I?

A) Go to activity statements, at the top there will a IBKR office stated. If it is the US office (example here), then you are IBKR US. If it is the SG one, you are IBKR SG.

Alternatively, if you haven't funded the account, activity statements will not be available.. In that case, you can check Reports > Other Reports > Account Confirmation Letter > Run and check the Interactive Brokers company signature. For US it would be LLC and for SG it would be Singapore Pte. Ltd. Guide with screenshots

Q) Will there be a forced migration of Singapore residents to IBKR SG from IBKR US?

A) There will not be a forced migration of IBKR US to IBKR SG.

*Source: Chat with IBKR agent dated 26 August 2020

Q) Do I have to close my IBKR US to open my IBKR SG?

Clients can hold accounts in both IBKR US and SG concurrently.

Q) What’s the difference between IBKR US and IBKR SG?

IBKR SG:

Able to trade SGX stocks
Not subject to PDT rules
No trading of spot metals
Only accepts GBP, USD, SGD, CNH and HKD for deposit/withdrawal
GST charged on commissions (GST is charged on IBKR US trades since late July 2024)
Higher margin rates (2.56% compared to 1.56% as of 15 June)

Q) Are securities in IBKR SG account protected by SIPC?

Non-Singaporean securities in IBKR SG account are protected by U.S SIPC coverage.

https://t.me/sgIBKRcommunity/71172

https://www.interactivebrokers.com.sg/en/general/security-investor-protection.php

Q) How do I change my account from IBKR US to IBKR SG?

See the answer by IBKR here.

Q) Can a Singaporean open a IBKR LLC (US) account instead of IBKR SG today?

Yes, as of July 2021. At the first page of account opening, if you select Yes to the question “Do you have an active FIN / NRIC Number?” you will open with IBKR SG. If you select No, you will open with IBKR LLC (US). If you selected No (so as to open with IBKR LLC (US)), you will still be required to provide your NRIC number and a copy of your NRIC afterwards in the application.

For IBKR LLC (US) opening, if you had opened with IBKR SG before, you may see the below question. Answer No.

The official way for Singapore residents to open a IBKR LLC account is to register themselves as Accredited or Expert investors.

https://www.interactivebrokers.com/lib/cstools/faq/#/content/163288915?articleId=28216814

Recurring Investments

Q) What investments are eligible for recurring investments?

According to the IBKR FAQ, only stocks tradeable in fractions are eligible.

Q) Does IBKR do currency conversion automatically?

Yes. If you are buying a USD denominated stock but do not hold sufficient USD in your account, IBKR changes just sufficient USD for the purchase from your base currency. IBKR does not charge commissions for this service, and the FX trade is done even for a margin account. There is no spread on the FX trade. See FAQ Qn11

Q) What’s the recurring investment commissions?

IBKR states that it is the same as normal share purchases. LSE USD purchases used to be $0.35 but has changed to the same comms structure as typical buy orders ($1.70-$1.72) from mid Feb 2024.

Others

Q) Can I buy Crypto?

Only US residents are allowed to trade Crypto.

Q) What should I look at to prevent myself from being margin called/liquidated?

Why was I liquidated?

Q) Why am I unable to buy a stock in USD (or any other currency) when I have already done the conversion into USD?

This happens when the following conditions are true:

Off-sync in the holidays between the two exchanges
You are using a cash account

The underlying cause of this problem is an off-sync in the settlement date between your currency conversion and the stocks purchase which will happen when one of the exchanges involved is closed on the settlement date.

To see if your trades will be affected, you may visit here.

Example:

You have just converted some SGD to USD on 7 August, but the settlement date (T+2) falls on 9 August (Singapore’s national day). The settlement of USD will not be done in time on 9 August as MAS will be closed. If you submit a buy order for AAPL (a stock traded on the US exchange in USD) on 7 August, it requires you to have settled USD available on hand on 9 August (T+2) in order to settle the stock as the NY exchanges are not closed on 9 August. This results in IBKR giving an error.

Margin accounts do not face this problem as IBKR will implicitly borrow money on 9 August (stock settlement date) to settle your trades.

Q) Why does IBKR keep changing some of my non-base currencies to base currencies?

See this link.

Q) Why is IBKR charging me $100 for withdrawal?

Short answer: They aren’t charging $100. It’s just an estimate. Normal charges apply as per normal. See “Cash Movements” section.

If you’re still worried, raise a ticket with CSO.

Transfer of Shares into IBKR

Q) How to handle position costs? They’re messed up after a transfer.

See this article.

Q) How to transfer from SCB to IBKR

Alternate post

Cost: See page 3 of this PDF under “Outward Transfer from SC Online Trading”

Put up request at both inward and outward brokerage. In the request form, generally personal info and positions info for transfer.
Make sure SCB settlement account has sufficient for the fees required. No inward transfer fees for IBKR.
After you submit the request at both sides, the departments at both ends will talk and do the work for you. Process took 4 working days end (submit requests) to end (seeing positions in IBKR).

Info at SCB side:

COUNTERPARTY DETAILS (FOR EXTERNAL TRANSFER ONLY)

- NAME OF COUNTERPARTY* (AS PER COUNTERPARTY RECORDS): Interactive Brokers

- NAME OF CONTACT PERSON* (AS PER COUNTERPARTY RECORDS): Asset Transfer Desk

- EMAIL*: assettransferservice@interactivebrokers.com

- TELEPHONE/MOBILE NUMBER: NIL

- FAX: NIL

Info at IBKR Side

Broker Information

- Account Number at Broker: XXXX

- Account Title: SECURITIES TRADING ACCOUNT

- Contact Name: Share Transfer Team

- Contact Email: sgwm.assettransfer@sc.com

- Contact Phone: +65 6242 5333

OTHER GENERAL INVESTING QUESTIONS

Q) What are the withholding dividend taxes imposed on Singaporeans for equities belonging to companies registered in different countries?

Withholding dividend tax is based on the country of domicile, not which exchange the company is listed.

Domicile	Withholding Tax Rate (%)
United States	30%
U.S ADR	Depends on where the ADRs are registered (aka. domicile) ADRs are non-American companies listed on U.S exchanges
China	10%
Hong Kong	0%
Hong Kong H Shares	10% (H shares are China companies listed on HKSE)
Japan	15%
Germany	15%
UK	0%
Ireland	0%
Australia	0%-30% (depending on franking credits)
Switzerland	15%
France	30%
Canada	15%
Israel	10%

*Click on the link for the source

List of Double Taxation Agreements signed between Singapore and other countries

Q) Investing in Irish domiciled ETFs vs US domiciled ETFs

A) A better explanation can be found here.

Q) How do i sell odd lots in IBKR (eg. 9345 shares of Company X)

A) Use the platform to sell round lots first (sell 9300), then call SG office : 800-101-3456 → trade related (option 1) → phone order (option 1) to close position. Do note that odd lot order will only be valid for the day. Do also note that trade will not be amalgamated and charges will be levied accordingly.

Inactivity Fees

Q) Is the inactivity fee charged 10 SGD or 10 USD?

A) The inactivity fee charged will be deducted in base currency but will be the equivalent of 10USD.

Example 1:

Investor’s base currency is SGD, inactivity fee works out to be 13.66SGD(or 10USD). Investor’s SGD cash will be deducted the equivalent of 10USD(or 13.66SGD), even if the investor has USD cash available for deduction.

Example 2:

Investor’s base currency is USD, inactivity fee works out to be 10USD. Investor’s USD cash will be deducted by 10USD.

Q) What if I do not have enough cash in the account to pay for the inactivity fees?

A) If you are on a margin account, it will be treated as a margin loan. If you are on a cash account, IBKR may liquidate your holdings to pay for the inactivity fee.

Note that the inactivity fees will be deducted in the base currency.

If you do not have enough cash in the base currency to pay for the inactivity fee:

Margin account: You will loan the base currency required

Cash account: Other currencies will be converted through FX (spot rate without 2USD forex fee, though investor has no control over the exact spot rate) and then deducted in base currency.

Q) I have opened an account but did not fund it. What will happen to the account?

A) Refer to this IBKR article.

Q) Is the Net Liquidation Value (100k) amount for which I do not have to pay any inactivity fees in USD or SGD or base currency?

A) It’s in USD. Think about it - if it’s in any currency, people can just switch their base currency to Japanese Yen or Rupiah to game the 100k figure.

Q) If I open two IBKR accounts, US and SG, is the 100k NLV accounted for separately?

A) Yes, they are treated as separate accounts. This means that you need to maintain at least 100k USD equivalent in IBKR US account to not be charged an inactivity fee, and the same for the IBKR SG account.