Is there another place besides IB I can use for Friends and Family accounts? They seem a little more complex than I need.
Thanks
Thanks
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Friends and Family Accounts..
- Thread starter midlifeguy
- Start date
Actually they are really simple. Makes it alot easier to trade multiple accounts. I have been doing it for some time.
I have created an FFA account and have 2 sub accounts under it, all are funded.
I have 1k in Master account, do I need to keep more? Does all the fees go from Master account? What about commission?
The reason I ask is I will be managing mine and friend's account and I certainly don't want to pay for my friend's commission nor do I want to charge him any fees.
Thanks
I have 1k in Master account, do I need to keep more? Does all the fees go from Master account? What about commission?
The reason I ask is I will be managing mine and friend's account and I certainly don't want to pay for my friend's commission nor do I want to charge him any fees.
Thanks
Quote from PatelAtWork:
I have created an FFA account and have 2 sub accounts under it, all are funded.
I have 1k in Master account, do I need to keep more? Does all the fees go from Master account? What about commission?
The reason I ask is I will be managing mine and friend's account and I certainly don't want to pay for my friend's commission nor do I want to charge him any fees.
Thanks
1K won't go far. The Master account doesn't really hold any money, it's all in the sub accounts, the fees come out of the sub accounts.
Quote from alphastocks:
1K won't go far. The Master account doesn't really hold any money, it's all in the sub accounts, the fees come out of the sub accounts.
Alpha, didn't you just contradict yourself by saying 1k won't go far and master account doesn't hold money??
Still a bit confused.
Market data subscription fees are paid out of the master account. For example if you subscribe to DTB market data for the DAX futures that amount will be deducted from the master account.
However, if you have a sub account which doesn't meet the $30 minimum for commissions, the $10 fee will be deducted from that sub account (each sub account not meeting $30 in commissions will have that $10 deducted).
Commissions are charged to the sub account for their trades, they do not come out of the master account.
However, if you have a sub account which doesn't meet the $30 minimum for commissions, the $10 fee will be deducted from that sub account (each sub account not meeting $30 in commissions will have that $10 deducted).
Commissions are charged to the sub account for their trades, they do not come out of the master account.
Quote from SideShowBob:
Market data subscription fees are paid out of the master account. For example if you subscribe to DTB market data for the DAX futures that amount will be deducted from the master account.
However, if you have a sub account which doesn't meet the $30 minimum for commissions, the $10 fee will be deducted from that sub account (each sub account not meeting $30 in commissions will have that $10 deducted).
Commissions are charged to the sub account for their trades, they do not come out of the master account.
Thank you SideShowBob. That answers my question.
Quote from PatelAtWork:
Alpha, didn't you just contradict yourself by saying 1k won't go far and master account doesn't hold money??
Still a bit confused.
I mean trading a 1k account regardless what type of account it is is futile and a waste of time. The Master account doesn't hold the money, the sub accounts do.
IB recently changed their fee structure. As I understand it the $30 a month minimum to avoid the $10/month fee for the standard data feed still applies to a normal account, but -
In a Friends and family account each sub-account causes a $10 fee to be debited against the advisor account. The account must then produce the number of sub-accounts times $10 to get the fee waived, with the minimum commission level always being $30.
Assume four accounts. Four accounts must produce 4 times $10 in commissions - $40.
Example 1:
Acct 1 - $25 in commissions
Acct 2 - $5 in commissions
Acct 3 - $5 in commissions
Acct 4 - $5 in commissions
Total $40 - No fee
Example 2:
Acct 1 - $10 in commissions
Acct 2 - $10 in commissions
Acct 3 - $10 in commissions
Acct 4 - $5 in commissions
Total $35 - $ 10 fee
Example 3:
Acct 1 - $10 in commissions
Acct 2 - $5 in commissions
Acct 3 - $5 in commissions
Acct 4 - $5 in commissions
Total $25 - $ 30 fee
Fees are always billed to the Advisor account, not to the sub-accounts. Thus, you need leave very little money in the advisor account if you just use basic data. If you use a lot of "added-value" data then you must ensure that you transfer enough to have sufficient funds to pay for the data. IB does not pro-rate data. You always pay for a full month.
I won't swear by the above, but it is the way I understood it when I spoke to IB. I can't find any IB documentation on the subject.
Jack
In a Friends and family account each sub-account causes a $10 fee to be debited against the advisor account. The account must then produce the number of sub-accounts times $10 to get the fee waived, with the minimum commission level always being $30.
Assume four accounts. Four accounts must produce 4 times $10 in commissions - $40.
Example 1:
Acct 1 - $25 in commissions
Acct 2 - $5 in commissions
Acct 3 - $5 in commissions
Acct 4 - $5 in commissions
Total $40 - No fee
Example 2:
Acct 1 - $10 in commissions
Acct 2 - $10 in commissions
Acct 3 - $10 in commissions
Acct 4 - $5 in commissions
Total $35 - $ 10 fee
Example 3:
Acct 1 - $10 in commissions
Acct 2 - $5 in commissions
Acct 3 - $5 in commissions
Acct 4 - $5 in commissions
Total $25 - $ 30 fee
Fees are always billed to the Advisor account, not to the sub-accounts. Thus, you need leave very little money in the advisor account if you just use basic data. If you use a lot of "added-value" data then you must ensure that you transfer enough to have sufficient funds to pay for the data. IB does not pro-rate data. You always pay for a full month.
I won't swear by the above, but it is the way I understood it when I spoke to IB. I can't find any IB documentation on the subject.
Jack