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Is it possible to separate an IB account into many accounts for different strategies?
- Thread starter Daal
- Start date
Quote from rolando87:
Would creating subaccounts affect the PDT rule? For example if I were to have 3 accounts with $10,000 each. Would i be able to daytrade all the subaccounts if i wanted to.
Also, do you have to pay extra for the so called corporate account.
Thanks!
In my case I just created two ordinary accounts (one an IRA) and linked them. You'll have to ask IB about the PDT rule question.
Perhaps some clarification would be helpful here as this thread appears to involve discussion of various grouped account structures offered by IB, one being a 'linked' account type another a 'Friends & Family' account type and a third a âSeparate Trading Accountâ.
To start, a linked account is intended to facilitate ease of operation of multiple accounts belonging to the same beneficial owner (same name and taxpayer identification number). Thus, for example, if one maintained an individual trading account, a Roth IRA account and a Traditional IRA account, all could be linked (a joint account cannot be linked to an individual account at this time). The primary benefits of doing so would include a single user ID, password and security device through which all accounts could be accessed and a single market data subscription which would be accessible to all accounts. It's important to note that each account is funded separately, margined separately (including PDT calculations) and is subject to its own monthly minimum activity fee. Operationally, once the account holder logs in to the trading platform or Account Management, they are presented with a drop down list of the linked accounts and need to specify the account for which orders are submitted or administrative tasks performed.
A new linked account can be opened by either selecting the Account Administration and then Link Existing Account menu options in Account Management or by selected the 'Open an Account' button from the IB home page and entering the same email address as on the existing account. If the account holder already has multiple eligible accounts which were opened prior to the availability of linkage, they may be linked by selecting the Account Management menu options referenced above. For additional information regarding the steps to link an account type KB1319 into the search engine on the IB home page. Information regarding the selection of a market data billing account can be found at KB1684 and general FAQs at KB1467.
In comparison, the Friends & Family account type is designed to accommodate trading on behalf of multiple beneficial owners (e.g., family members) by a single individual. This account is a variant of the professional advisor account structure and involves a master account through which all trading is conducted, with trades being pre-allocated to the sub-accounts. As trading is generally not conducted through the sub-accounts, trading platform access is not needed nor is market data. Accordingly, any market data subscriptions would be provided and billed to the master account user.
In addition, each account, including the master, is subject to a monthly activity minimum, however, there are provisions for waiver based upon aggregate activity (see website for example). As this account structure is intended for multiple beneficial owners, each sub-account is provided access to a version of Account Management which is not accessible by the master and which provides for the logical separation of administrative tasks unique to that owner (e.g., account funding, maintenance of individual information and access to statement). Finally, as is the case with linked accounts, each Friends & Family sub-account is funded and margined separately.
The Separate Trading Account structure is intended for proprietary trading groups and likewise provides for a master account and sub-accounts, however all are part of the same legal entity. In this account type, funds are deposited in the master account and transferred between the master and sub-accounts to control individual trader limits. Initial margining is determined for each sub-account, while maintenance margining is determined at a consolidated account level. In terms of market data, subscriptions are billed to the master account but are assessed based upon subscription elections of each individual sub-account user. Here, monthly activity minimums are determined in the same manner as the Friends & Family account structure.
Hope this is helpful.
To start, a linked account is intended to facilitate ease of operation of multiple accounts belonging to the same beneficial owner (same name and taxpayer identification number). Thus, for example, if one maintained an individual trading account, a Roth IRA account and a Traditional IRA account, all could be linked (a joint account cannot be linked to an individual account at this time). The primary benefits of doing so would include a single user ID, password and security device through which all accounts could be accessed and a single market data subscription which would be accessible to all accounts. It's important to note that each account is funded separately, margined separately (including PDT calculations) and is subject to its own monthly minimum activity fee. Operationally, once the account holder logs in to the trading platform or Account Management, they are presented with a drop down list of the linked accounts and need to specify the account for which orders are submitted or administrative tasks performed.
A new linked account can be opened by either selecting the Account Administration and then Link Existing Account menu options in Account Management or by selected the 'Open an Account' button from the IB home page and entering the same email address as on the existing account. If the account holder already has multiple eligible accounts which were opened prior to the availability of linkage, they may be linked by selecting the Account Management menu options referenced above. For additional information regarding the steps to link an account type KB1319 into the search engine on the IB home page. Information regarding the selection of a market data billing account can be found at KB1684 and general FAQs at KB1467.
In comparison, the Friends & Family account type is designed to accommodate trading on behalf of multiple beneficial owners (e.g., family members) by a single individual. This account is a variant of the professional advisor account structure and involves a master account through which all trading is conducted, with trades being pre-allocated to the sub-accounts. As trading is generally not conducted through the sub-accounts, trading platform access is not needed nor is market data. Accordingly, any market data subscriptions would be provided and billed to the master account user.
In addition, each account, including the master, is subject to a monthly activity minimum, however, there are provisions for waiver based upon aggregate activity (see website for example). As this account structure is intended for multiple beneficial owners, each sub-account is provided access to a version of Account Management which is not accessible by the master and which provides for the logical separation of administrative tasks unique to that owner (e.g., account funding, maintenance of individual information and access to statement). Finally, as is the case with linked accounts, each Friends & Family sub-account is funded and margined separately.
The Separate Trading Account structure is intended for proprietary trading groups and likewise provides for a master account and sub-accounts, however all are part of the same legal entity. In this account type, funds are deposited in the master account and transferred between the master and sub-accounts to control individual trader limits. Initial margining is determined for each sub-account, while maintenance margining is determined at a consolidated account level. In terms of market data, subscriptions are billed to the master account but are assessed based upon subscription elections of each individual sub-account user. Here, monthly activity minimums are determined in the same manner as the Friends & Family account structure.
Hope this is helpful.
Hello IB-AN! what about my example? why all sub accounts(which is actually same account,just a different user name,password) are subject to separate data fees per user name? it is an individual joint account,not a pro. this is what IB CS told me-in order to receive arca data(the one that cost $10 a month for non pro) -"master" and each sub account must subscribe and pay separately. but it's a same account!
Thank you!
Thank you!
Bob111:
The terminology may be a bit confusing here, but it appears as if you may be referring to a different tier of account access and that is the âuserâ level. Account holders, whether master or sub, generally have the ability to add multiple users to their account. For example, they may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API). Alternatively, the account holder may also provide access to (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement.
When an additional user is added to the account, that user cannot share the market data subscription of another and is required to select and pay for any subscriptions they elect. This handling simply serves to respect vendor limitations as they relate to the dissemination of data procured from a single subscription to multiple sessions.
This response is based upon what I interpret to be your account setup. If you believe that this does not adequately address your particular situation, feel free to send me a private message with account detail and Iâll research further.
The terminology may be a bit confusing here, but it appears as if you may be referring to a different tier of account access and that is the âuserâ level. Account holders, whether master or sub, generally have the ability to add multiple users to their account. For example, they may wish to add a second user registered under their own name for the purpose of opening two TWS sessions simultaneously (one for normal access and the other for connecting via an API). Alternatively, the account holder may also provide access to (non-employee) individuals, such as a family members, pursuant to a Limited Power of Attorney agreement.
When an additional user is added to the account, that user cannot share the market data subscription of another and is required to select and pay for any subscriptions they elect. This handling simply serves to respect vendor limitations as they relate to the dissemination of data procured from a single subscription to multiple sessions.
This response is based upon what I interpret to be your account setup. If you believe that this does not adequately address your particular situation, feel free to send me a private message with account detail and Iâll research further.
Thanks for the great info, IB-AN. Can I bug you with another question:
I also have multiple strategies that I'd like to trade in separate accounts, but the strategies use a different basket of stocks and need to stream 100 symbols each. If I open multiple accounts under my same name/SSN, will I be able to stream a different set of 100 symbols in each account? ie: If I have two accounts, will I be able to stream 200 symbols total (100 in each)?
And if I were to link the accounts as you suggest, will I be able to stream 100 unique symbols in each or only the same 100 symbols across all accounts?
Thanks in advance for your help!
I also have multiple strategies that I'd like to trade in separate accounts, but the strategies use a different basket of stocks and need to stream 100 symbols each. If I open multiple accounts under my same name/SSN, will I be able to stream a different set of 100 symbols in each account? ie: If I have two accounts, will I be able to stream 200 symbols total (100 in each)?
And if I were to link the accounts as you suggest, will I be able to stream 100 unique symbols in each or only the same 100 symbols across all accounts?
Thanks in advance for your help!
Quote from IB-AN:
Each account which is linked would be eligible to receive the 100 concurrent lines of market data thereby allowing for unique entries by account. Note that since the account is linked by a common user, you will only have one account session active at a given time.
Thanks very much for the reply, IB-AN.
So if I'm understanding you correctly, I can't have two linked accounts running separate instances of TWS simultaneously?
Maybe it would make sense to describe in more detail what I'm trying to achieve: I currently have an IB account that I use to run an automated trading bot I've developed that trades a basket of 100 symbols. I've developed another trading bot that uses a different basket of 100 symbols that I'd like to trade under a separate IB account, so I can track its performance more accurately and stream its own unique symbols. Both bots use the TWS API.
I want to run both bots simultaneously during market hours on different machines / different instances of TWS. Both bots would need to stream 100 symbols each, simultaneously. Both accounts would be registered under my name/SSN, but its not a must that they be linked (I don't mind if I have two usernames/passwords/security devices).
Is this possible?
Thanks again!