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Regarding the Zero Hedge locate posting: don’t believe everything you read on anonymous blogs, particularly when they are posted (or referenced) by dissatisfied clients or competitors. This was fabricated by aggregating unrelated content and omitting content that was relevant. In any...

When you sell stock short, you are effectively borrowing. It's not cash, as is the case when purchasing stock on margin, but shares, and the lender of those shares requires that the transaction be fully collateralized to secure their return at the conclusion of the loan. The loan collateral is...

This discrepancy is likely the result of the new cost basis reporting rules. Under these rules, the wash sales reported on the 1099 are only to be those involving 'covered' securities. In contrast, the activity statement includes wash sales independent without regard to the securities...

Pardon the typo, that should be short 100 shares and long the SSF.

If the objective is to generate free cash which can then be withdrawn or used to support other trading activities the answer is no as, absent other equity, the cash proceeds from the stock sale are going to be needed as equity to satisfy the margin requirement (as those proceeds need to be...

These are simply worksheets prepared in a format consistent with Schedule D (in prior years) and Form 8948 (this year). Form 8948 is a new tax form which details the sale of capital assets and which provides summary data for Schedule D.

There are Webinars scheduled which IB customers may register for at no cost and which will go into detail regarding the new cost basis rules and in particular, Form 8949. The first of these is scheduled for 3/5/12. See link below...

Once the Form 8949 becomes available in Account Management (scheduled for by end of day 3/1/12), you will also be provided the ability to download it into a .CSV format which can be then imported into a variety of applications including Excel. This is the same as was the case in prior years for...

The IRS specifies the information which the broker is required to submit and does not allow for the submission of additional information which the broker could theoretically provide (think of it as a data file with a defined record layout). Even if we wanted to supply them with a Schedule D...

The IWM is one example of an ETF which is not considered a 'covered' security for 2011 trades but will be treated as such effective 1/1/2012. When determining the phase in plan for 'covered' vs 'uncovered', only those unit investment trusts organized as regulated investment companies were...

The IRS always took the cost basis from individuals as evidence of the gain/loss and Gain/Loss worksheets were never supplied to the IRS (nor will the Form 8949). You supporting evidence in the event of an audit would be your activity statements.

What you are likely seeing is the reporting method for transactions which the IRS classifies as 'uncovered' by the new rules (as they are either stocks acquired prior to 1/1/11 or another product). If the transaction is 'uncovered' then the broker does not require the cost basis. It's the same...

Please understand, the changes to the Form 1099B originate from the IRS, not IB, as we are simply reporting information to you in the manner as prescribed by the IRS. What has taken place is as follows: Starting with 2011 tax reporting, new legislation went into effect which requires brokers...

Not given the recent IRS changes with respect to reporting requirements. Starting this year, the IRS is requiring that brokers report cost basis information as well as holding period and gross proceeds for securities deemed 'covered'. This includes stock positions acquired after January 1...

Not at all. What I am saying is that our forex is substantially different from the traditional forex offerings which SIPC does not cover in that it is not a contract (e.g. commodities which specifies future delivery or OTC which relies upon a continuous roll). Rather, we actually deliver the...

If you are located in the U.S. the toll-free number is 1-877-442-2757; direct 1-312-542-6901. A listing of contact numbers for Customer Service centers globally as well as their hours of operation is located can be found through the following website link (located on the upper right hand corner...

Any noted by another poster, it is not uncommon for an outside auditor to seek to independently confirm balances held with a broker. In any event, we would not release account specific information such as this to any person or party or who was not listed as the account holder unless formally...

IB-UKL accounts are a specific subset of IB-UK accounts which hold physical metals (spot gold & silver) and CFDs. These particular OTC products are not regulated by the CFTC or SEC and are therefore not carried with IB-LLC, the US broker dealer and FCM. They are not afforded SIPC protected as...

No futures or futures option contract is currently allowed to be carried in a securities account portfolio margining or otherwise (with the exception of a single stock future which is a jointly regulated product, eligible to be carried in either a futures or commodities account). This is why...