IB Account linking?

M

marko1045

I have an account with Interactive Brokers that I trade actively with. I am curious as to what fees will be added if I add a Roth IRA via account linking. I plan on keeping the Roth IRA account as a passive trading account for trading long-term only. This presents a problem as IB will charge me a $10 monthly fee. Is it possible that if I generate enough commissions on my primary account that it will cover the fee on my IRA account? Or does anyone know of how to avoid such a fee?

I like the idea of consolidating everything to one broker and login, but I hate the idea of my Roth IRA generating over $100/yr for the inactivity fee when its going to basically be parked into a few ETFs.
 
marko1045 said:
I have an account with Interactive Brokers that I trade actively with. I am curious as to what fees will be added if I add a Roth IRA via account linking. I plan on keeping the Roth IRA account as a passive trading account for trading long-term only. This presents a problem as IB will charge me a $10 monthly fee. Is it possible that if I generate enough commissions on my primary account that it will cover the fee on my IRA account? Or does anyone know of how to avoid such a fee?

I like the idea of consolidating everything to one broker and login, but I hate the idea of my Roth IRA generating over $100/yr for the inactivity fee when its going to basically be parked into a few ETFs.
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Why not just log on to the account management tool, open a chat with the customer service, and ask them directly?
 
marko1045 said:
I have an account with Interactive Brokers that I trade actively with. I am curious as to what fees will be added if I add a Roth IRA via account linking. I plan on keeping the Roth IRA account as a passive trading account for trading long-term only. This presents a problem as IB will charge me a $10 monthly fee. Is it possible that if I generate enough commissions on my primary account that it will cover the fee on my IRA account? Or does anyone know of how to avoid such a fee?

I like the idea of consolidating everything to one broker and login, but I hate the idea of my Roth IRA generating over $100/yr for the inactivity fee when its going to basically be parked into a few ETFs.
More...

the $10 is just one of the fees, for market data.... there are other fees that you should think about... regardless, IB is the best for active traders.. if you are not an active trader on that account then just accept the cost of doing business and add to your portfolio some dividend paying stocks and cover the fees that way...

just my 2 cents...
 
It seems as though My best bet is to just go with another broker. I was just hoping to consolidate my accounts. The $10 does hurt considering I plan on making about 2 trades a year and my portfolio is capped at $5500(my first year with an ira).
 
marko1045 said:
It seems as though My best bet is to just go with another broker. I was just hoping to consolidate my accounts. The $10 does hurt considering I plan on making about 2 trades a year and my portfolio is capped at $5500(my first year with an ira).
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then look at fidelity... they are your best choice to be honest... zero fees...
 
marko1045 said:
I have an account with Interactive Brokers that I trade actively with. I am curious as to what fees will be added if I add a Roth IRA via account linking. I plan on keeping the Roth IRA account as a passive trading account for trading long-term only. This presents a problem as IB will charge me a $10 monthly fee. Is it possible that if I generate enough commissions on my primary account that it will cover the fee on my IRA account? Or does anyone know of how to avoid such a fee?

I like the idea of consolidating everything to one broker and login, but I hate the idea of my Roth IRA generating over $100/yr for the inactivity fee when its going to basically be parked into a few ETFs.
More...

IB has dropped the monthly $10 activity minimums for accounts > $100,000 in net liq. So if your IRA exceeds that value, the fee is no longer an issue.
 
Regarding the $10 minimum monthly activity fee:

In addition to the fee being waived in any one account having equity of at least $100,000, linking accounts provides an additional benefit in that the commissions of all accounts may be used to offset the activity fees of others.

Take for example, and individual generating $20 of commissions in account "A" and $0 in account "B". Absent linking, account "A" would not be subject to the fee (as $20 > $10) but account "B" would (the full amount, as $0 < $10). Once linked, the commissions of account "A" would be sufficient to meet the $10 activity fee of both "A" and "B".

Had the two accounts been linked and "A" generated a lesser amount of commissions, say $17, then "A" again would not be subject to a fee and "B" a fee of $3.

The point here is that by linking accounts, one can receive the benefit of commission aggregation for purposes of reducing/covering this activity fee that they wouldn't receive otherwise.
 
Could an IRA directly with IB benefit from this linking and aggregation if the other account is held c/o an Introducing Broker such as Livevol?

Thanks.
 
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