Interactive Brokers (Best Kept Secret)

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
klaus14
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Re: Interactive Brokers (Best Kept Secret)

Post by klaus14 »

Marseille07 wrote: Mon Sep 13, 2021 10:34 am
klaus14 wrote: Thu Sep 09, 2021 4:56 am
Marseille07 wrote: Wed Sep 08, 2021 10:39 pm I scheduled a CC payment out of IBKR. I think it'll go through but if not, I likely have to pay a penalty.

I'll check my balance at the ATM when I have cash and an equity position in the same account. I expect to see the amount of settled cash.
if it is over $1000 you need to approve it in mobile app. They send you a SMS for it.
This thing is extremely confusing.

In "Transaction Status & History," I see "Your Direct Debit withdrawal of USD XXX has been sent and should arrive at your bank shortly."

However, I just received an SMS saying "Use IBKR mobile to authorize by XYZ or it will be rejected." I open the app, I don't see anything obvious how to authorize this transaction.
i think it was under Transfer & Pay > Direct Debits
My investment algorithm: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=351899&p=6112869#p6112869
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

klaus14 wrote: Mon Sep 13, 2021 10:54 am i think it was under Transfer & Pay > Direct Debits
Thank you very much, I found the menu. I wish I could do this from the browser too, I don't see why they need to make it mobile only.
klaus14
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Re: Interactive Brokers (Best Kept Secret)

Post by klaus14 »

Marseille07 wrote: Mon Sep 13, 2021 11:04 am
klaus14 wrote: Mon Sep 13, 2021 10:54 am i think it was under Transfer & Pay > Direct Debits
Thank you very much, I found the menu. I wish I could do this from the browser too, I don't see why they need to make it mobile only.
i think the logic is that mobile device is a separate device you physically possess.
My investment algorithm: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=351899&p=6112869#p6112869
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

klaus14 wrote: Mon Sep 13, 2021 12:03 pm i think the logic is that mobile device is a separate device you physically possess.
I guess so. You saved my transactions as some of them were due in a couple of hours :beer
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

occambogle wrote: Thu Mar 18, 2021 8:52 am
wmvink wrote: Thu Mar 18, 2021 8:44 am For me, a major issue with ACH is the ridiculous 44 business days hold on your funds.
This happened to me. I did a backdoor Roth which involved transferring funds from bank account > Trad IRA, then tried to do a conversion and transfer to Roth IRA. I got tripped up by the ACH 44 day rule because they consider moving funds from one account at IB to another account at IB, even when you are the holder of both accounts and they are all in your name, to be a "withdrawal" from the first account.... so.... 44 days. My advisor escalated the matter up the chain within IB and they eventually agreed to make a manual exception - but their policy is nuts.
As a result I never use ACH at IB anymore... I'll use Online Billpay for amounts under $10k and it works great if your bank sends it electronically. And for any larger amounts I would just do bank/wire transfer.
I mentioned this elsewhere, but the 44-day rule only applies when you initiate ACH at IB.

I just did an ACH pull initiated at IB from Bank A (subject to 44-days); then another ACH pull initiated at Bank B to pull the said money. IB let the money pulled without complaining about 44-days.

I don't know if this trick solves your situation but it worked in my use case.
parval
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Re: Interactive Brokers (Best Kept Secret)

Post by parval »

Marseille07 wrote: Thu Jan 06, 2022 11:17 am
occambogle wrote: Thu Mar 18, 2021 8:52 am
wmvink wrote: Thu Mar 18, 2021 8:44 am For me, a major issue with ACH is the ridiculous 44 business days hold on your funds.
This happened to me. I did a backdoor Roth which involved transferring funds from bank account > Trad IRA, then tried to do a conversion and transfer to Roth IRA. I got tripped up by the ACH 44 day rule because they consider moving funds from one account at IB to another account at IB, even when you are the holder of both accounts and they are all in your name, to be a "withdrawal" from the first account.... so.... 44 days. My advisor escalated the matter up the chain within IB and they eventually agreed to make a manual exception - but their policy is nuts.
As a result I never use ACH at IB anymore... I'll use Online Billpay for amounts under $10k and it works great if your bank sends it electronically. And for any larger amounts I would just do bank/wire transfer.
I mentioned this elsewhere, but the 44-day rule only applies when you initiate ACH at IB.

I just did an ACH pull initiated at IB from Bank A (subject to 44-days); then another ACH pull initiated at Bank B to pull the said money. IB let the money pulled without complaining about 44-days.

I don't know if this trick solves your situation but it worked in my use case.
hmm this seems pretty crazy, my initial deposit had a 1 week hold and the most recent one settled in 1 day.

Both ACH initiated from IB side
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

parval wrote: Thu Jan 06, 2022 2:18 pm hmm this seems pretty crazy, my initial deposit had a 1 week hold and the most recent one settled in 1 day.

Both ACH initiated from IB side
It's not the settlement time, it's that they don't let you ACH out the same money other than where it came from.

Unless you initiate an ACH pull from the outside.
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

Transferring some ETFs to IBKR from Fidelity via ACATS transfer, I just selected the ticker and the number of shares (a subset of my total holding).

How do the brokerages decide which lots are moved?
Crom laughs at your Four Winds
leviathan
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Re: Interactive Brokers (Best Kept Secret)

Post by leviathan »

muffins14 wrote: Fri Jan 07, 2022 1:33 pm Transferring some ETFs to IBKR from Fidelity via ACATS transfer, I just selected the ticker and the number of shares (a subset of my total holding).

How do the brokerages decide which lots are moved?
FIFO
https://guides.interactivebrokers.com/c ... rbasis.htm
slbnoob
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Re: Interactive Brokers (Best Kept Secret)

Post by slbnoob »

muffins14 wrote: Fri Jan 07, 2022 1:33 pm Transferring some ETFs to IBKR from Fidelity via ACATS transfer, I just selected the ticker and the number of shares (a subset of my total holding).

How do the brokerages decide which lots are moved?
Is this something that can be done from IBKR interface with no need to make phone calls?

I'm thinking of opening an IBKR account for their lower margin rates. Fidelity charges almost 3x more and just refused to negotiate a lower rate.

I wonder if the ACATS transfer also accounts for margin or if I would need to sell stock to settle the margin debt at Fidelity and re-open margin debt at IBKR.
Chuck
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Re: Interactive Brokers (Best Kept Secret)

Post by Chuck »

slbnoob wrote: Fri Jan 07, 2022 4:11 pm I'm thinking of opening an IBKR account for their lower margin rates. Fidelity charges almost 3x more and just refused to negotiate a lower rate.
Be sure to check out the "Box spreads as loans" thread. It kind of makes your broker's margin rates irrelevant if you can roll boxes. We are regularly getting below 1% on any size balance.
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

slbnoob wrote: Fri Jan 07, 2022 4:11 pm
muffins14 wrote: Fri Jan 07, 2022 1:33 pm Transferring some ETFs to IBKR from Fidelity via ACATS transfer, I just selected the ticker and the number of shares (a subset of my total holding).

How do the brokerages decide which lots are moved?
Is this something that can be done from IBKR interface with no need to make phone calls?

I'm thinking of opening an IBKR account for their lower margin rates. Fidelity charges almost 3x more and just refused to negotiate a lower rate.

I wonder if the ACATS transfer also accounts for margin or if I would need to sell stock to settle the margin debt at Fidelity and re-open margin debt at IBKR.
I transferred a few shares of an ETF as a test and it was just a few clicks, no calls. I imagine transferring margin could be different?
Crom laughs at your Four Winds
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

my transfer of some shares of NTSX was successful.

Shouldn't IBKR tell me when the lot was purchased so I know the Long-term vs short-term status of the gain?

There is cost basis information, but I can't know if it's correct since I don't know what lot was removed from my Fidelity account
Crom laughs at your Four Winds
tomsense76
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Re: Interactive Brokers (Best Kept Secret)

Post by tomsense76 »

(deleted)

Broken out into a separate thread ( viewtopic.php?t=367786 )
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
danHammer
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Re: Interactive Brokers (Best Kept Secret)

Post by danHammer »

Hey does anyone know if you can use the bill-payment function with margin? It's a pretty risky idea, but I'm wondering if I can pay my rent with money earning 10%+ dividends 8-)
klaus14
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Re: Interactive Brokers (Best Kept Secret)

Post by klaus14 »

muffins14 wrote: Thu Jan 13, 2022 10:31 am my transfer of some shares of NTSX was successful.

Shouldn't IBKR tell me when the lot was purchased so I know the Long-term vs short-term status of the gain?

There is cost basis information, but I can't know if it's correct since I don't know what lot was removed from my Fidelity account
it takes some time to ibkr show cost basis
My investment algorithm: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=351899&p=6112869#p6112869
no simpler
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Re: Interactive Brokers (Best Kept Secret)

Post by no simpler »

IB has a lot of features but I got better spreads and order execution with Alpaca:
https://alpaca.markets/
The problem with IB is that the $1 commissions really add up with pro, and I actually think not using PFOF might lead to bigger spreads.

Alpaca is aimed at developers, which is good and bad. For most non programmers, you really need to use a front end with it. There are a number of tools that have Alpaca integrations now. I really like Composer with Alpaca:
https://www.composer.trade/
It's a bit like Portfolio Visualizer meets M1 on steroids.
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

klaus14 wrote: Tue Jan 25, 2022 1:47 am
muffins14 wrote: Thu Jan 13, 2022 10:31 am my transfer of some shares of NTSX was successful.

Shouldn't IBKR tell me when the lot was purchased so I know the Long-term vs short-term status of the gain?

There is cost basis information, but I can't know if it's correct since I don't know what lot was removed from my Fidelity account
it takes some time to ibkr show cost basis
Thanks -- they showed up eventually. IBKR does make me appreciate how easy Fidelity is to use, especially for identifying TLH opportunities during a day.

It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
Crom laughs at your Four Winds
Startled Cat
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Re: Interactive Brokers (Best Kept Secret)

Post by Startled Cat »

muffins14 wrote: Tue Jan 25, 2022 8:18 am It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
You can see lots under "tax optimizer" in the mobile app but it's an extremely ridiculous and clunky UI that doesn't even show which lots have gains/losses. It's so bad that it's one of the main reasons I'm looking to leave IBKR.
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

Startled Cat wrote: Tue Jan 25, 2022 9:00 am
muffins14 wrote: Tue Jan 25, 2022 8:18 am It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
You can see lots under "tax optimizer" in the mobile app but it's an extremely ridiculous and clunky UI that doesn't even show which lots have gains/losses. It's so bad that it's one of the main reasons I'm looking to leave IBKR.
Yeah definitely not ideal. I can open the TWS on desktop and open the tax optimizer for a security, then I see all my lots.

Then I have to open a separate page to see the current price of that asset, and I have to do my own subtraction for each of them to find losses
Crom laughs at your Four Winds
bling
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Re: Interactive Brokers (Best Kept Secret)

Post by bling »

muffins14 wrote: Tue Jan 25, 2022 9:10 am
Startled Cat wrote: Tue Jan 25, 2022 9:00 am
muffins14 wrote: Tue Jan 25, 2022 8:18 am It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
You can see lots under "tax optimizer" in the mobile app but it's an extremely ridiculous and clunky UI that doesn't even show which lots have gains/losses. It's so bad that it's one of the main reasons I'm looking to leave IBKR.
Yeah definitely not ideal. I can open the TWS on desktop and open the tax optimizer for a security, then I see all my lots.

Then I have to open a separate page to see the current price of that asset, and I have to do my own subtraction for each of them to find losses
yep. every other broker i've dealt with has an easy way to view all the lots. with IBKR you have to hunt for this information. you have to create a custom report and turn off grouping on the symbol. problem though, is it's delayed. any trades done on the same day will not appear here.

alas, i ended up tracking every lot individually on a spreadsheet. pretty annoying, but now that i've put in the effort i can see every lot across every broker so i guess it wasn't all bad.
muffins14
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Re: Interactive Brokers (Best Kept Secret)

Post by muffins14 »

It also feels like I have a lot of commissions in general... I'm using tiered pricing.

For example I submitted an order for like 800 shares of ITOT, and the total commission divided by the number of shares comes to 0.0067 per share, when I thought tiered pricing was 0.0035 per share.

Am I missing some way to actually reduce the commissions?
Crom laughs at your Four Winds
bling
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Re: Interactive Brokers (Best Kept Secret)

Post by bling »

muffins14 wrote: Wed Jan 26, 2022 12:52 pm It also feels like I have a lot of commissions in general... I'm using tiered pricing.

For example I submitted an order for like 800 shares of ITOT, and the total commission divided by the number of shares comes to 0.0067 per share, when I thought tiered pricing was 0.0035 per share.

Am I missing some way to actually reduce the commissions?
with tiered you get charged fees by the exchange, so it fluctuates. you also get rebates if you add liquidity and IBKR will pass some of that to you.
xerxes101
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Re: Interactive Brokers (Best Kept Secret)

Post by xerxes101 »

I have been with IBKR for about a year now (Pro) and I have a real problem with how clunky the software is...also, I am not sure about the real value add...I get charged a lot of commissions for supposedly low margin rates...but I would prefer box spread anyway...I would say my biggest problem is the UI and not feeling that I have all the info I need at my fingertips.
gtwhitegold
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Re: Interactive Brokers (Best Kept Secret)

Post by gtwhitegold »

For people with smaller balances, M1, especially M1 Plus is probably a better option for margin accounts, but if you're dealing with a large balance, then Interactive Brokers is probably better. It would really depend on the size and number of transactions and how much you plan to borrow for leverage.
international001
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Re: Interactive Brokers (Best Kept Secret)

Post by international001 »

gtwhitegold wrote: Tue Feb 01, 2022 9:57 pm For people with smaller balances, M1, especially M1 Plus is probably a better option for margin accounts, but if you're dealing with a large balance, then Interactive Brokers is probably better. It would really depend on the size and number of transactions and how much you plan to borrow for leverage.
Is it just 2% for any amount, as long as you have M1 Plus ($125/year)
IB has a max 1.58% margin rate, for $120/year

How can M1 be better?
Tanelorn
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Re: Interactive Brokers (Best Kept Secret)

Post by Tanelorn »

muffins14 wrote: Wed Jan 26, 2022 12:52 pm It also feels like I have a lot of commissions in general... I'm using tiered pricing.

For example I submitted an order for like 800 shares of ITOT, and the total commission divided by the number of shares comes to 0.0067 per share, when I thought tiered pricing was 0.0035 per share.

Am I missing some way to actually reduce the commissions?
With stocks and tiered commissions, you will have much lower commissions if you place a (non-marketable) limit order instead of a marketable order. Of course there’s some risk you might not get filled doing this, but if you do, you get a lower price than the ask and a lower commission.
tj
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Re: Interactive Brokers (Best Kept Secret)

Post by tj »

Tanelorn wrote: Sun Feb 06, 2022 6:33 pm
muffins14 wrote: Wed Jan 26, 2022 12:52 pm It also feels like I have a lot of commissions in general... I'm using tiered pricing.

For example I submitted an order for like 800 shares of ITOT, and the total commission divided by the number of shares comes to 0.0067 per share, when I thought tiered pricing was 0.0035 per share.

Am I missing some way to actually reduce the commissions?
With stocks and tiered commissions, you will have much lower commissions if you place a (non-marketable) limit order instead of a marketable order. Of course there’s some risk you might not get filled doing this, but if you do, you get a lower price than the ask and a lower commission.
Why would the commission be lower?
Tanelorn
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Re: Interactive Brokers (Best Kept Secret)

Post by Tanelorn »

tj wrote: Sun Feb 06, 2022 6:34 pm Why would the commission be lower?
Because limit orders get exchange rebates for providing liquidity to the market, and IB passes thru most of this rebate to reduce your commission under the tiered commission. Nasdaq for example you would get back about 0.2 cents/share, which would make the normal 0.2-0.3 cents/share commission much lower and/or close to zero. You can even get them negative if you trade enough and are in the higher tiers.

https://www.interactivebrokers.com/en/i ... =936&nhf=T
https://www.interactivebrokers.com/en/i ... &p=stocks2
gtwhitegold
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Re: Interactive Brokers (Best Kept Secret)

Post by gtwhitegold »

international001 wrote: Sun Feb 06, 2022 6:07 pm
gtwhitegold wrote: Tue Feb 01, 2022 9:57 pm For people with smaller balances, M1, especially M1 Plus is probably a better option for margin accounts, but if you're dealing with a large balance, then Interactive Brokers is probably better. It would really depend on the size and number of transactions and how much you plan to borrow for leverage.
Is it just 2% for any amount, as long as you have M1 Plus ($125/year)
IB has a max 1.58% margin rate, for $120/year

How can M1 be better?
The 1.58% is dependent upon someone having a Pro account not a Lite account. The Lite rate is currently 2.58%. There are other possible costs associated with a Pro account that also must be taken into consideration before choosing a Pro account over a Lite account. Choosing between IBKR or M1 for a margin account is highly dependent upon what an individual's circumstances are.
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

Is there a way to always allow ACH transactions? This is the only institution asking to approve / reject ACH transactions, and it's confusing because there are 3 scenarios:
a) I have to approve or else rejected
b) I have to reject or else goes through
c) I have to approve, and someone calls me to confirm
klaus14
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Re: Interactive Brokers (Best Kept Secret)

Post by klaus14 »

Marseille07 wrote: Wed Feb 09, 2022 11:40 am Is there a way to always allow ACH transactions? This is the only institution asking to approve / reject ACH transactions, and it's confusing because there are 3 scenarios:
a) I have to approve or else rejected
b) I have to reject or else goes through
c) I have to approve, and someone calls me to confirm
c) never happened to me. i don't even respond to calls from unknown numbers. is it when transaction is huge?
My investment algorithm: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=351899&p=6112869#p6112869
Marseille07
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Re: Interactive Brokers (Best Kept Secret)

Post by Marseille07 »

klaus14 wrote: Wed Feb 09, 2022 8:05 pm c) never happened to me. i don't even respond to calls from unknown numbers. is it when transaction is huge?
I would assume so. I authorized via the mobile app then the screen said someone would call me, and they did 5 minutes later.
international001
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Re: Interactive Brokers (Best Kept Secret)

Post by international001 »

gtwhitegold wrote: Sun Feb 06, 2022 10:47 pm
international001 wrote: Sun Feb 06, 2022 6:07 pm
gtwhitegold wrote: Tue Feb 01, 2022 9:57 pm For people with smaller balances, M1, especially M1 Plus is probably a better option for margin accounts, but if you're dealing with a large balance, then Interactive Brokers is probably better. It would really depend on the size and number of transactions and how much you plan to borrow for leverage.
Is it just 2% for any amount, as long as you have M1 Plus ($125/year)
IB has a max 1.58% margin rate, for $120/year

How can M1 be better?
The 1.58% is dependent upon someone having a Pro account not a Lite account. The Lite rate is currently 2.58%. There are other possible costs associated with a Pro account that also must be taken into consideration before choosing a Pro account over a Lite account. Choosing between IBKR or M1 for a margin account is highly dependent upon what an individual's circumstances are.
What are those big PRo costs?
bling
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Re: Interactive Brokers (Best Kept Secret)

Post by bling »

unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
gtwhitegold
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Re: Interactive Brokers (Best Kept Secret)

Post by gtwhitegold »

bling wrote: Thu Feb 10, 2022 6:07 am unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
Not everyone has a very large taxable portfolio, so that's what I meant. Most of my portfolio is tax advantaged, so it might not make much sense to use IBKR Pro, at least in the beginning. You can always upgrade to a pro account later though.
comeinvest
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Re: Interactive Brokers (Best Kept Secret)

Post by comeinvest »

muffins14 wrote: Tue Jan 25, 2022 9:10 am
Startled Cat wrote: Tue Jan 25, 2022 9:00 am
muffins14 wrote: Tue Jan 25, 2022 8:18 am It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
You can see lots under "tax optimizer" in the mobile app but it's an extremely ridiculous and clunky UI that doesn't even show which lots have gains/losses. It's so bad that it's one of the main reasons I'm looking to leave IBKR.
Yeah definitely not ideal. I can open the TWS on desktop and open the tax optimizer for a security, then I see all my lots.

Then I have to open a separate page to see the current price of that asset, and I have to do my own subtraction for each of them to find losses
The biggest pain however is that for international stocks, they show the tax lots in foreign currency only. But for the 1099 tax form and the tax return, the cost basis needs to be converted to USD with the exchange rate at the time of purchase. So if the currency fluctuates, you can have a loss on your tax form, while IB Tax Optimizer shows a gain, or vice versa.
jshaffer740
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Re: Interactive Brokers (Best Kept Secret)

Post by jshaffer740 »

bling wrote: Thu Feb 10, 2022 6:07 am unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
I’ve been trying to decide whether to go with Pro or Lite. Do you have any thoughts on the breakeven point? I’ve got about $150k in tax-advantaged and $60k in taxable at the moment. I’m running a lifecycle investing strategy with a handful of ETFs (that I rebalance monthly) and box spreads (that I roll every 3-6 months).
1.5x leverage | 45% market-cap [VTI, VEA, VWO] + 45% factor tilted [AVUV, AVDV, AVES] + 10% trend following [KMLM, DBMF]
bling
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Re: Interactive Brokers (Best Kept Secret)

Post by bling »

jshaffer740 wrote: Fri Feb 11, 2022 9:27 am
bling wrote: Thu Feb 10, 2022 6:07 am unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
I’ve been trying to decide whether to go with Pro or Lite. Do you have any thoughts on the breakeven point? I’ve got about $150k in tax-advantaged and $60k in taxable at the moment. I’m running a lifecycle investing strategy with a handful of ETFs (that I rebalance monthly) and box spreads (that I roll every 3-6 months).
IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.

if you're not using margin, other brokers are better because they offer a much better well-rounded package (fidelity, schwab), or offer credit card perks (boa+merrill edge), or superior software (tdameritrade).
thegame
Posts: 16
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Location: USA

Re: Interactive Brokers (Best Kept Secret)

Post by thegame »

muffins14 wrote: Tue Jan 25, 2022 9:10 am
Startled Cat wrote: Tue Jan 25, 2022 9:00 am
muffins14 wrote: Tue Jan 25, 2022 8:18 am It seems like with IBKR I have to have a separate place (outside IBKR) to log all my tax lots / cost bases and tell me when they are at a loss. At least that's what I seem to be able to find -- aside from looking at my transfer statements, it's like I can't see cost basis until I place a trade and am looking to identify which lot I want it to use.

On Fidelity I can see all lots on the position with like 1 click, and then choose to sell if I want to rather than the other way around. What's up with that?
You can see lots under "tax optimizer" in the mobile app but it's an extremely ridiculous and clunky UI that doesn't even show which lots have gains/losses. It's so bad that it's one of the main reasons I'm looking to leave IBKR.
Yeah definitely not ideal. I can open the TWS on desktop and open the tax optimizer for a security, then I see all my lots.

Then I have to open a separate page to see the current price of that asset, and I have to do my own subtraction for each of them to find losses
Has anyone tried IBKR’s new tax loss features within the Order Allocation tool? This may be what you are looking for.

I am considering IBKR for a new, large taxable account and TLH is important to me. Don’t have my account setup yet otherwise I’d test it.

This may need to be done in an advisor / client hierarchy (link your trading account to your own friends and family advisor account and access this tool from the friends and family advisor account)

https://fxnewsgroup.com/forex-news/plat ... rder-tool/

https://www.interactivebrokers.com/en/g ... s_1012.php (2nd heading down)
jshaffer740
Posts: 143
Joined: Mon May 03, 2010 7:21 pm

Re: Interactive Brokers (Best Kept Secret)

Post by jshaffer740 »

bling wrote: Fri Feb 11, 2022 9:50 am
jshaffer740 wrote: Fri Feb 11, 2022 9:27 am
bling wrote: Thu Feb 10, 2022 6:07 am unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
I’ve been trying to decide whether to go with Pro or Lite. Do you have any thoughts on the breakeven point? I’ve got about $150k in tax-advantaged and $60k in taxable at the moment. I’m running a lifecycle investing strategy with a handful of ETFs (that I rebalance monthly) and box spreads (that I roll every 3-6 months).
IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.

if you're not using margin, other brokers are better because they offer a much better well-rounded package (fidelity, schwab), or offer credit card perks (boa+merrill edge), or superior software (tdameritrade).
That makes sense. Though I do plan to explore futures trading in my tax-advantaged accounts, since margin isn’t an option there. And unfortunately Fidelity (which I’ve been happy with for my HSA) doesn’t permit futures trading. That is one thing I like about IB—they treat you like a grown up and don’t artificially restrict you from trading certain products.
1.5x leverage | 45% market-cap [VTI, VEA, VWO] + 45% factor tilted [AVUV, AVDV, AVES] + 10% trend following [KMLM, DBMF]
tj
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Re: Interactive Brokers (Best Kept Secret)

Post by tj »

bling wrote: Fri Feb 11, 2022 9:50 am
jshaffer740 wrote: Fri Feb 11, 2022 9:27 am
bling wrote: Thu Feb 10, 2022 6:07 am unless your portfolio is tiny, you should always get a pro account.

the free trades and free streaming data is a gimmick.

one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.

great! your trade was free. you probably also got filled at a worse price compared to their better execution algo available in pro.
I’ve been trying to decide whether to go with Pro or Lite. Do you have any thoughts on the breakeven point? I’ve got about $150k in tax-advantaged and $60k in taxable at the moment. I’m running a lifecycle investing strategy with a handful of ETFs (that I rebalance monthly) and box spreads (that I roll every 3-6 months).
IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.

if you're not using margin, other brokers are better because they offer a much better well-rounded package (fidelity, schwab), or offer credit card perks (boa+merrill edge), or superior software (tdameritrade).
You overlooked the free $1k in stock they were giving out for putting in $100k. once my shares vest, I'll probably transfer out.
international001
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Joined: Thu Feb 15, 2018 6:31 pm

Re: Interactive Brokers (Best Kept Secret)

Post by international001 »

bling wrote: Thu Feb 10, 2022 6:07 am one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.
Does this mean that you get a worse price when trading? I don't think how it would make a big impact for a buy and hold portfolio
Would it make a difference if you transfer your ETFs to PFOF
international001
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Joined: Thu Feb 15, 2018 6:31 pm

Re: Interactive Brokers (Best Kept Secret)

Post by international001 »

bling wrote: Fri Feb 11, 2022 9:50 am IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.
My reason for using Lite is the almost free currency exchange they offer. Nothing beats it. It's a Transfer actually-wise.
calwatch
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Re: Interactive Brokers (Best Kept Secret)

Post by calwatch »

I like IBKR's mobile watch lists better than the competition so I went with Lite. I hold a fairly small position with a small amount on margin. The interest rate difference doesn't really matter if I don't have to pay for market data.
bling
Posts: 1452
Joined: Sat Jan 21, 2012 11:49 am

Re: Interactive Brokers (Best Kept Secret)

Post by bling »

international001 wrote: Fri Feb 11, 2022 6:37 pm
bling wrote: Thu Feb 10, 2022 6:07 am one major difference between lite and pro is PFOF. lite has it, pro doesn't. that's where they make the money.
Does this mean that you get a worse price when trading? I don't think how it would make a big impact for a buy and hold portfolio
Would it make a difference if you transfer your ETFs to PFOF
here's a good summary: https://www.thebalance.com/payment-for- ... ow-5191754
bling
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Joined: Sat Jan 21, 2012 11:49 am

Re: Interactive Brokers (Best Kept Secret)

Post by bling »

calwatch wrote: Sat Feb 12, 2022 3:37 am I like IBKR's mobile watch lists better than the competition so I went with Lite. I hold a fairly small position with a small amount on margin. The interest rate difference doesn't really matter if I don't have to pay for market data.
there's a reason it's free. the market data from lite comes from the CBOE One feed, which represents a small portion of all trading volume. it's fine for buy/hold, but if you do any kind of active trading where real-time price matters, you should upgrade.
comeinvest
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Re: Interactive Brokers (Best Kept Secret)

Post by comeinvest »

bling wrote: Fri Feb 11, 2022 9:50 am IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.

if you're not using margin, other brokers are better because they offer a much better well-rounded package (fidelity, schwab), or offer credit card perks (boa+merrill edge), or superior software (tdameritrade).
Can you please let me know what are the credit card perks benefits if you have a BoA or Merrill investment account, and in which way is TD Ameritrade software better than IB?
tj
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Joined: Wed Dec 23, 2009 11:10 pm

Re: Interactive Brokers (Best Kept Secret)

Post by tj »

comeinvest wrote: Mon Feb 14, 2022 4:05 pm
bling wrote: Fri Feb 11, 2022 9:50 am IMO, the only reason to use IBKR over other brokers is for margin, which automatically means pro.

if you're not using margin, other brokers are better because they offer a much better well-rounded package (fidelity, schwab), or offer credit card perks (boa+merrill edge), or superior software (tdameritrade).
Can you please let me know what are the credit card perks benefits if you have a BoA or Merrill investment account, and in which way is TD Ameritrade software better than IB?
There's like a 100 page thread on the BofA/Merrill Preferred Rewards.

https://www.bankofamerica.com/preferred-rewards/
tj
Posts: 9317
Joined: Wed Dec 23, 2009 11:10 pm

Re: Interactive Brokers (Best Kept Secret)

Post by tj »

My 1099 did not include the free unvested stock of IKBR. Presumably the value of the shares will be on my 2022 1099. And I suspect the cost basis value will be the value on date of vesting?
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