IB Advisor Friends & Family account

[JackR]

Quote from trader99:

SSB,

How much do we need to fund the IB F&F aact? Also $2k? I thought the F&F adn clients should fund that.

I saw that under Acct management, User Functions, there's an ability to add User. Is that how they should add me into them to make it a F&F?

Please help.

thanks

You need to open an Advisor Account. Fund it with $20. If you have an advisor account it will start with the letter F. That money covers the $10 datafeed fee if you don't get enough trades in the client accounts. If you will be buying additional data ensure there is enough in the account to cover a month or two. You don't want them autoliquidating in a client account to cover the data fee.

Open sub-accounts, all of which will start with the letter U. One for yourself, if so desired, and have each friend or family member open an account. The accounts of the F&F variety are opened by your sending the paperwork to the "clients" from within your F&F account (the F account). They then fund the accounts via check, ACH, wire, or ACAT (or the futures transfer form which name I cannot recall).

If they (or you) are already an IB client you can do an internal transfer from the non-F&F account to the F&F client account. However, you cannot just change the account type. You must open a F&F client account and do the transfer.

I'd suggest you call IB, explain what you want to do, and they will explain it to you. The only problem with the process is the built-in delays and holds IB places on any funding except wires and internal transfers.

Also be advised that they used to do internal transfers only on weekends and on options expiration weekend they gave that process priority. You could be delayed a week if they are still short-staffed.

Jack

 

[toby]

My master account has been approved and funded, how do I open new client accounts?

Please help!

Thanks in advance.

 

[trader99]

Quote from JackR:

You need to open an Advisor Account. Fund it with $20. If you have an advisor account it will start with the letter F. That money covers the $10 datafeed fee if you don't get enough trades in the client accounts. If you will be buying additional data ensure there is enough in the account to cover a month or two. You don't want them autoliquidating in a client account to cover the data fee.

Open sub-accounts, all of which will start with the letter U. One for yourself, if so desired, and have each friend or family member open an account. The accounts of the F&F variety are opened by your sending the paperwork to the "clients" from within your F&F account (the F account). They then fund the accounts via check, ACH, wire, or ACAT (or the futures transfer form which name I cannot recall).

If they (or you) are already an IB client you can do an internal transfer from the non-F&F account to the F&F client account. However, you cannot just change the account type. You must open a F&F client account and do the transfer.

I'd suggest you call IB, explain what you want to do, and they will explain it to you. The only problem with the process is the built-in delays and holds IB places on any funding except wires and internal transfers.

Also be advised that they used to do internal transfers only on weekends and on options expiration weekend they gave that process priority. You could be delayed a week if they are still short-staffed.

Jack

JackR,

apparently, you still need to deposit the $2K to start! not the $20 for data feed. Then after that, I'll have to transfer my clients $ to the FA account, then i can withdraw the cash then.

 

[JackR]

Trader99:

OK. Perhaps different rules apply. I opened the F&F master. Deposited $100 in the Master, then two weeks later established a personal sub-account to which I added in excess of $2,000. Perhaps there are different rules if the establishing account is advising an account with the same beneficial owner.


Jack

 

[IB Salvatore]

The 2,000 USD minimum requirement is not applicable for the master (F) account. You only need to deposit funds sufficient to cover market data charges.

Please deposit funds intended for trading directly into the sub (U) account. This will avoid hold periods being enforced (essentially trapping the funds in the F account) in the master account where they cannot be traded.

You can enter deposit notifications for the U account in the sub account or master Account Management. Please make sure your bank lists the U account on any wires.

Sal

 

[trader99]

Quote from IB Salvatore:

The 2,000 USD minimum requirement is not applicable for the master (F) account. You only need to deposit funds sufficient to cover market data charges.

Please deposit funds intended for trading directly into the sub (U) account. This will avoid hold periods being enforced (essentially trapping the funds in the F account) in the master account where they cannot be traded.

You can enter deposit notifications for the U account in the sub account or master Account Management. Please make sure your bank lists the U account on any wires.

Sal

Sal,

Hmm.. This is confusing. Then why did they force me to deppsit $2K then? At least I put down $200. And they said no you have to read the minimum acct balance guidelines.

So, now what? Do I hav eto wait fo rmy $2K to come into the account then wire it back out?

Also, how do I add new clients? Or clients just do an IB Internal Transfer?

Or do I do an "Add Account" under Acct Admin? I have a client who is alreayd using IB and this person just wants to transfer it over to my FA acct? This is confusing.


-99

 

[IB Salvatore]

Please select 'Add client'. The customer can then initiate a transfer into the new account from their current Account Management screen.

If you select 'Have IB automatically generate a trading account', the deposit section refers to the trading account, which is required to meet the 2k minimum deposit.

IB will automatically create a trading account (U) when the master (F) account is approved, so you don't have to use 'add client' function to create your own account.

Please PM your user name for specific questions.

 

[SideShowBob]

Quote from trader99:



Also, how do I add new clients? Or clients just do an IB Internal Transfer?

Or do I do an "Add Account" under Acct Admin? I have a client who is alreayd using IB and this person just wants to transfer it over to my FA acct? This is confusing.


-99

You will need to add accounts using the add account link. Once they're set up and approved (but not yet funded) the users can transfer a regular IB account to the sub-account using account management in the regular IB account (under transfer there's an option to do this).

SSB

 

[trader99]

Quote from IB Salvatore:

Please select 'Add client'. The customer can then initiate a transfer into the new account from their current Account Management screen.

If you select 'Have IB automatically generate a trading account', the deposit section refers to the trading account, which is required to meet the 2k minimum deposit.

IB will automatically create a trading account (U) when the master (F) account is approved, so you don't have to use 'add client' function to create your own account.

Please PM your user name for specific questions.

Sal,

I clicked on "Add Client" then for some reason it automatically generated a username log in using MY 5 letters. Similar to my FA log in though it has a U in front of it ??

Is this right? But my client has his own IB account which I'll transfer over using Internal Transfer feature. So, can he just do an internal transfer without me using the "Add Client" button? B/c it seems when i do a Add client it creates the first 5 characters using MY name not the clients. Or is that OK?

please clarify. thanks.

99

 

[maxross]

In the friends and family account, is there any way that you can use the IB TWS integrated with Tradestation.