Interactive brokers requirements for corporate account of FX Margin?

Blonde

Blonde

Hiya,



May please answer with referencing numbers:

1-Is here the best location/sub-forum of this forum to ask questions about IB-related matters?

2-I had tested to open a demo account for testing my strategy with IB, the demo account does not modifiable to the capital amount I requested. The representative of IB told me to have a custom balance in the demo, I only shall have to connect it to a live account. Is there any way around this to have a custom balance without connecting the demo account to the live account?

3- For having leveraged Spot Forex demo account on IB, the representative told me there is no way unless I connect the demo to a live account? Is there any way around to have a demo account with IB that has leveraged Spot Forex instrument 1:33(in Majors) but does not connect the demo to the live account?
I remember I had a demo account with IB but it does not connect to the live account, but I was able to trade leveraged Spot Forex 1:33(in Majors) but I can't open a new one now?

4- Is the Swap-rate/Margin-loan-rate in IB is depend on my balance as well? e.g. I open a 1-Mio position on EUR/USD on four live accounts on IB with 50K EUR, 1-Million EUR, 10-Million EUR, 100-Million EUR deposited balance, will my Swap-rate/Margin-loan-rate for e.g. keeping a 1-Mio EUR/USD overnight will be different on each of these four accounts?

5- What is the minimum corporate and individual account balance requirement to have access to the leveraged Spot Forex in IB with 1:33(in Majors)?

6- Does the only cost involved in IB's trading Spot Forex is Spread+Swap(Margin-loan) or does there is the commission for opening and closing positions as well, besides the spread fee in opening and closing the positions in the relevant time accordingly? There are DMA brokers that offering tighter spread, but their costs of trading Spot Forex is different, as some charging commissions and some not?

7- May please someone calculates the total costs involved in the 1-Mio and 10-Mio EUR/USD position that kept overnight for one night and closed the day after separately? Considering if the spread is 1-PIP when I open the position and its 1-PIP when I close the position?
I mean this 1.5% for 0<<100K USD, 1% for 100,000.1<<1-Million, 0.5% for 1000,000.1<< Unlimited, are the rates that IB added to every day's interest rate for loaning on Swap/Margin rate that is officially announced by Interbank?

8- In IB terms and calculations, is the calculated total interest amount in #7, will be divided into 365 or 360 to give out the daily value for the Swap/Margin loan in the interbank rate?

9- 'IBKR will assess a surcharge of 1% on large loan balances unless otherwise prearranged with IBKR', May someone elaborates what this means by arranging the loan by IB terms? Do I need to inform them somehow after I applied for leveraged Spot Forex of 1:33(in Majors), somehow? And what is the procedure for it?


Tnx and best of luck
 
1. Yes.
2. The IB rep is correct.
3. The properties of a demo account have changed since a couple of years ago. The IB rep is correct.
The rest I don't know. I don't use IB as a forex broker. The answers to your questions may depend on which IB subsidiary you will hold your account (e.g. US, Europe, UK, Japan, HK, ..).
 
HobbyTrading said:
1. Yes.
2. The IB rep is correct.
3. The properties of a demo account have changed since a couple of years ago. The IB rep is correct.
The rest I don't know. I don't use IB as a forex broker. The answers to your questions may depend on which IB subsidiary you will hold your account (e.g. US, Europe, UK, Japan, HK, ..).
More...


Hiya,



Thanks. In case I have few companies around the world, I can open my IB Margin trading account in either of these mentioned and considering totally all subsidiaries of IB altogether, which one of them has the best of the best options for me and could you mention what is their difference between these subsidiaries that all considered options having at least 1:33 FX Marin on Majors? And all of these as answers are clearing brokers as well?

Are all the subsidiaries of IB having the same safety against Price manipulations? e.g. Is the US is the safest bet for being free from price manipulation or all of the IB's subsidiaries have the same safety against price manipulations?

In case there are few clearing brokers between these IB's subsidiaries, can some of these clearing brokers have better Fill, lower Spikes, and lower Black-Swan than others in FX Margin trading? e.g. if either of FX Major pairs does not have a spike in the IB UK, but they may have the spike in other IB subsidiaries? What about fill? Do the fill price in either of IB's clearing broker branches can be better(in terms of I get full position to fill in requested price with the lowest slippage) than other IB's clearing broker branches?

My main concern is for FX Margin trading in Major pairs in this inquiry and post.


Tnx and best of luck
 
Blonde said:
Hiya,



Thanks. In case I have few companies around the world, I can open my IB Margin trading account in either of these mentioned and considering totally all subsidiaries of IB altogether, which one of them has the best of the best options for me and could you mention what is their difference between these subsidiaries that all considered options having at least 1:33 FX Marin on Majors? And all of these as answers are clearing brokers as well?

Are all the subsidiaries of IB having the same safety against Price manipulations? e.g. Is the US is the safest bet for being free from price manipulation or all of the IB's subsidiaries have the same safety against price manipulations?

In case there are few clearing brokers between these IB's subsidiaries, can some of these clearing brokers have better Fill, lower Spikes, and lower Black-Swan than others in FX Margin trading? e.g. if either of FX Major pairs does not have a spike in the IB UK, but they may have the spike in other IB subsidiaries? What about fill? Do the fill price in either of IB's clearing broker branches can be better(in terms of I get full position to fill in requested price with the lowest slippage) than other IB's clearing broker branches?

My main concern is for FX Margin trading in Major pairs in this inquiry and post.


Tnx and best of luck
More...

The ECN network we built along with liquidity provided by clients who provide liquidity by placing orders is the same engine for each entity around the world. ie. your fills will be the same.
 
def said:
The ECN network we built along with liquidity provided by clients who provide liquidity by placing orders is the same engine for each entity around the world. ie. your fills will be the same.
More...


Dear IB Representative @def



Thanks for your answer. I do have questions below, may please answer them with reference to numbers, please?


1- I had tested to open a demo account for testing my strategy with IB, the demo account does not modifiable to the capital amount I requested. The representative of IB told me to have a custom balance in the demo, I only shall have to connect it to a live account. Is there any way around this to have a custom balance without connecting the demo account to the live account?

2- For having leveraged Spot Forex demo account on IB, the representative told me there is no way unless I connect the demo to a live account? Is there any way around to have a demo account with IB that has leveraged Spot Forex instrument 1:33(in Majors) but does not connect the demo to the live account?
I remember I had a demo account with IB but it does not connect to the live account, but I was able to trade leveraged Spot Forex 1:33(in Majors) but I can't open a new one now?

3- Is the Swap-rate/Margin-loan-rate in IB is depend on my balance as well? e.g. I open a 1-Mio position on EUR/USD on four live accounts on IB with 50K EUR, 1-Million EUR, 10-Million EUR, 100-Million EUR deposited balance, will my Swap-rate/Margin-loan-rate for e.g. keeping a 1-Mio EUR/USD overnight will be different on each of these four accounts?

4- What is the minimum corporate and individual account balance requirement to have access to the leveraged Spot Forex in IB with 1:33(in Majors)?

5- Does the only cost involved in IB's trading Spot Forex is Spread+Swap(Margin-loan) or does there is the commission for opening and closing positions as well, besides the spread fee in opening and closing the positions in the relevant time accordingly? There are DMA brokers that offering tighter spread, but their costs of trading Spot Forex is different, as some charging commissions and some not?

6- May please someone calculates the total costs involved in the 1-Mio and 10-Mio EUR/USD position that kept overnight for one night and closed the day after separately? Considering if the spread is 1-PIP when I open the position and its 1-PIP when I close the position?
I mean this 1.5% for 0<<100K USD, 1% for 100,000.1<<1-Million, 0.5% for 1000,000.1<< Unlimited, are the rates that IB added to every day's interest rate for loaning on Swap/Margin rate that is officially announced by Interbank?

7- In IB terms and calculations, is the calculated total interest amount in #6, will be divided into 365 or 360 to give out the daily value for the Swap/Margin loan in the interbank rate?

8- 'IBKR will assess a surcharge of 1% on large loan balances unless otherwise prearranged with IBKR', May someone elaborates what this means by arranging the loan by IB terms? Do I need to inform them somehow after I applied for leveraged Spot Forex of 1:33(in Majors), somehow? And what is the procedure for it?

9- May please mention all the IB branches in the world that offering 1:33 leverage for FX margin trading on major pairs?

10- Is there a possibility to put a request for higher leverage for FX trading on major pairs, e.g. 1:100 leverage, please?

11- In the concept of Algorithmic trading with TWS-API, in case I need an indicator that is not in the TWS Studies(TWS Technical Analysis as mentioned in the Studies section of TWS), what is the solution provided by IB for this?

11 A- As there are platforms like Ninjatrader-8 with comprehensive TA developed with the platform and there are about 1K of professionally developed purchasable optional TA for the Ninjatrader-8 makes it an interesting choice for TA based algorithmic trading robot development, but considering there may be a lag between Ninjatrader-8 and TWS-API, I would prefer to use TWS directly with a native programming language to TWS(like Java, Python, etc), while using this approach I don't have access to the extensive TA and indicators that are available through Ninjatrader-8, what is the solution for this? Is any way to purchase and install indicators that we need for TWS like what is available for the Ninjatrader-8 private TA marketplace?

12- While doing algorithmic trading by TWS-API, I want to be able to see the analysis I developed in the chart in TWS while the algorithmic trading doing the trades. As I want to markup the entries and exits in the chart. How can I do this, please?

13- There is a concept in liquidity in financial markets that every financial markets broker has a certain theoretical capacity that comes in place when a trade size is bigger than that amount. In case we violate that threshold, the fills that we get will not be as good as the fills we expected, as the amount of liquidity would not be enough. What is that threshold in the IB when trading FX major pairs in the margin? e.g. 1-Million position, 10-Million position, and 100-Million position on FX major on margin trading will be able to get the exact same fill if the set on the exact same price? Is this make sense what I mean?

I appreciate it if you would be able to answer the details with reference, please?


Best regards
 
Last edited:
Blonde said:
Dear IB Representative @def



Thanks for your answer. I do have questions below, may please answer them with reference to numbers, please?


1- I had tested to open a demo account for testing my strategy with IB, the demo account does not modifiable to the capital amount I requested. The representative of IB told me to have a custom balance in the demo, I only shall have to connect it to a live account. Is there any way around this to have a custom balance without connecting the demo account to the live account?

-> No the demo account does not offer custom balances.

2- For having leveraged Spot Forex demo account on IB, the representative told me there is no way unless I connect the demo to a live account? Is there any way around to have a demo account with IB that has leveraged Spot Forex instrument 1:33(in Majors) but does not connect the demo to the live account?
I remember I had a demo account with IB but it does not connect to the live account, but I was able to trade leveraged Spot Forex 1:33(in Majors) but I can't open a new one now?

-> you can trade FX on a paper account. leverage will match your account and that can vary depending where you reside as different regulators have different rules.

3- Is the Swap-rate/Margin-loan-rate in IB is depend on my balance as well? e.g. I open a 1-Mio position on EUR/USD on four live accounts on IB with 50K EUR, 1-Million EUR, 10-Million EUR, 100-Million EUR deposited balance, will my Swap-rate/Margin-loan-rate for e.g. keeping a 1-Mio EUR/USD overnight will be different on each of these four accounts?

-> the rate will match our interest rates you see on the site. if you carry large balances (over $10mm) you can enroll in our overnight swap program which will reduce interest carry costs. https://ibkr.info/article/2815

4- What is the minimum corporate and individual account balance requirement to have access to the leveraged Spot Forex in IB with 1:33(in Majors)?
-> depends on location. it is not balance dependent. please refer to our website or right click on your currency pair on your live account to see the leverage offered

5- Does the only cost involved in IB's trading Spot Forex is Spread+Swap(Margin-loan) or does there is the commission for opening and closing positions as well, besides the spread fee in opening and closing the positions in the relevant time accordingly? There are DMA brokers that offering tighter spread, but their costs of trading Spot Forex is different, as some charging commissions and some not?
-> tighter than a 1/10 of a pip where you can also work orders? We do not widen or take a spread on the quotes. We do charge .2 or .1 of a pip commission depending on volume.

6- May please someone calculates the total costs involved in the 1-Mio and 10-Mio EUR/USD position that kept overnight for one night and closed the day after separately? Considering if the spread is 1-PIP when I open the position and its 1-PIP when I close the position?
I mean this 1.5% for 0<<100K USD, 1% for 100,000.1<<1-Million, 0.5% for 1000,000.1<< Unlimited, are the rates that IB added to every day's interest rate for loaning on Swap/Margin rate that is officially announced by Interbank?
-> you earn (if positive interest rates) on one side, pay on the other but it is minimal. You can see the costs in your paper account.

7- In IB terms and calculations, is the calculated total interest amount in #6, will be divided into 365 or 360 to give out the daily value for the Swap/Margin loan in the interbank rate?
-> IB conforms to the international standards for day-counting wherein deposits rates for most currencies are expressed in terms of a 360 day year, while for other currencies (ex: GBP) the convention is a 365 day year. (this info is available on our website)

8- 'IBKR will assess a surcharge of 1% on large loan balances unless otherwise prearranged with IBKR', May someone elaborates what this means by arranging the loan by IB terms? Do I need to inform them somehow after I applied for leveraged Spot Forex of 1:33(in Majors), somehow? And what is the procedure for it?
-> this will not impact unless I'm mistaken and you will be running a 9+ figure account

9- May please mention all the IB branches in the world that offering 1:33 leverage for FX margin trading on major pairs?

10- Is there a possibility to put a request for higher leverage for FX trading on major pairs, e.g. 1:100 leverage, please?
-> NO WAY we are not a bucket shop and are not interested in taking on that kind of risk which could impact our overall financial integrity

11- In the concept of Algorithmic trading with TWS-API, in case I need an indicator that is not in the TWS Studies(TWS Technical Analysis as mentioned in the Studies section of TWS), what is the solution provided by IB for this?
-> we have many third party charting vendors connecting to us. you can also make a request via our feature poll

11 A- As there are platforms like Ninjatrader-8 with comprehensive TA developed with the platform and there are about 1K of professionally developed purchasable optional TA for the Ninjatrader-8 makes it an interesting choice for TA based algorithmic trading robot development, but considering there may be a lag between Ninjatrader-8 and TWS-API, I would prefer to use TWS directly with a native programming language to TWS(like Java, Python, etc), while using this approach I don't have access to the extensive TA and indicators that are available through Ninjatrader-8, what is the solution for this? Is any way to purchase and install indicators that we need for TWS like what is available for the Ninjatrader-8 private TA marketplace?
-> if you like Ninja, use them to connect. I do not believe latency (if any) will impact you.

12- While doing algorithmic trading by TWS-API, I want to be able to see the analysis I developed in the chart in TWS while the algorithmic trading doing the trades. As I want to markup the entries and exits in the chart. How can I do this, please?

-> don't understand so will pass

13- There is a concept in liquidity in financial markets that every financial markets broker has a certain theoretical capacity that comes in place when a trade size is bigger than that amount. In case we violate that threshold, the fills that we get will not be as good as the fills we expected, as the amount of liquidity would not be enough. What is that threshold in the IB when trading FX major pairs in the margin? e.g. 1-Million position, 10-Million position, and 100-Million position on FX major on margin trading will be able to get the exact same fill if the set on the exact same price? Is this make sense what I mean?

-> No cash, no play. That's how we handle it. We do have credit controls/limits in place with each of our liquidity providers as well to control risk.

I appreciate it if you would be able to answer the details with reference, please?


Best regards
More...
 
Dear Mr @def



Thanks. When I'm opening a corporate account with IB, which entity do I'm dealing with:
1-INTERACTIVE BROKERS LLC
(INTERACTIVE BROKERS LLC)
CRD#: 36418/SEC#: 8-47257
PICKWICK PLAZA
GREENWICH, CT 06830

2- INTERACTIVE BROKERS CORP.
(INTERACTIVE BROKERS CORP....)
CRD#: 117942/SEC#: 8-53615
PICKWICK PLAZA
GREENWICH, CT 06830

3- INTERACTIVE ADVISERS, INTERACTIVE ADVISORS
(INTERACTIVE BROKERS ASSET MANAGEMENT...)
CRD#: 145694/SEC#: 801-69224
LEVEL 20 HERON TOWER 110 BISHOPSGATE
LONDON, EC2N 4AY

Also as numbers 1 and 2 are licensed in 53 states, which state law applies to my corporate account, and will it be under legal entity 1 or legal entity 2 above?

If it does apply to my corporate location, I do have few companies, could you elaborate on each case:
A-1 Company registered UAE
A-2 Company registered Seychelles
A-3 Company registered in Samoa

Could you elaborate on each of these locations if I select either of them, where will be my company's corporate account will be located? Under what entity of IB and in which state?

Do I have any choice on IB location or the choice dictated on me without any right from m corporate lawyer to request a different location?

As one of my accountant's firms and lawyer is in HK, they may find it easier to open an account locally in HK for my corporate but I personally prefer the US as regulation on Spot-Forex is tighter than HK.
What my company will trade would be mostly Spot-FX major pairs and I prefer 1:33 leverage on these( I requested a demo and the customer service representative opened me a demo and I think I see the 1:33 leverage as based on my calculations on required-margin cash amount for opening a sample position).


Thank you in advance

Best regards
 
Blonde said:
Dear Mr @def



Thanks. When I'm opening a corporate account with IB, which entity do I'm dealing with:
1-INTERACTIVE BROKERS LLC
(INTERACTIVE BROKERS LLC)
CRD#: 36418/SEC#: 8-47257
PICKWICK PLAZA
GREENWICH, CT 06830

2- INTERACTIVE BROKERS CORP.
(INTERACTIVE BROKERS CORP....)
CRD#: 117942/SEC#: 8-53615
PICKWICK PLAZA
GREENWICH, CT 06830

3- INTERACTIVE ADVISERS, INTERACTIVE ADVISORS
(INTERACTIVE BROKERS ASSET MANAGEMENT...)
CRD#: 145694/SEC#: 801-69224
LEVEL 20 HERON TOWER 110 BISHOPSGATE
LONDON, EC2N 4AY

Also as numbers 1 and 2 are licensed in 53 states, which state law applies to my corporate account, and will it be under legal entity 1 or legal entity 2 above?

If it does apply to my corporate location, I do have few companies, could you elaborate on each case:
A-1 Company registered UAE
A-2 Company registered Seychelles
A-3 Company registered in Samoa

Could you elaborate on each of these locations if I select either of them, where will be my company's corporate account will be located? Under what entity of IB and in which state?

Do I have any choice on IB location or the choice dictated on me without any right from m corporate lawyer to request a different location?

As one of my accountant's firms and lawyer is in HK, they may find it easier to open an account locally in HK for my corporate but I personally prefer the US as regulation on Spot-Forex is tighter than HK.
What my company will trade would be mostly Spot-FX major pairs and I prefer 1:33 leverage on these( I requested a demo and the customer service representative opened me a demo and I think I see the 1:33 leverage as based on my calculations on required-margin cash amount for opening a sample position).


Thank you in advance

Best regards
More...

The entity in which you open an account depends on your principle place of business. If it is LLC, then it will be Interactive Brokers LLC in Greenwich.

Law- i'm not a lawyer but jurisdiction could depend on what you trade. The agreement should say so and the regulators have a say as well depending on product, arbitration clauses etc.

Location: I'm not sure what you want me to elaborate. Seychelles though is a high risk jurisdiction and will be subject to enhanced due diligence. All three of those for now would fall under IBLLC.

As your PBOB is not HK, I doubt HK works but FX is regulated in HK and requires a license, leverage is limited to 20:1

If your size is big as I think I mentioned previous you can apply for our auto-swap program which will save you on interest. https://ibkr.info/articke/2815

As you have many questions and most would be specific to you, I would recommend I put you in touch with a sales rep familiar with our FX and account opening processes. If you PM me your location I can either recommend a sales rep for you to contact or pass along your details and I can ask someone covering your location to contact you at your convenience.
 
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