limited company account with Interactive Brokers

M

morbal23

I am about to set up a German one-person limited in order to do my trading and work more efficient with costs/taxes/losses. I want to use Interactive Brokers/TWS and wondered if anyone of you has opened a trading account for a limited or comparable company structure before with IB.

Are there any restrictions besides compliance and aml requirements? Anything else to keep in mind?
 
morbal23 said:
I am about to set up a German one-person limited in order to do my trading and work more efficient with costs/taxes/losses. I want to use Interactive Brokers/TWS and wondered if anyone of you has opened a trading account for a limited or comparable company structure before with IB.

Are there any restrictions besides compliance and aml requirements? Anything else to keep in mind?
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You most likely will have to pay higher data fee rates depending on the exchanges you trade as IB will class you as a professional.
Can add up if you need live data from many different exchanges.
 
morbal23 said:
Thank you. I will keep this in mind. Do you know if this has any impact on the available margin?
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Zip. Nada. Zilch. (At least, 'the last time I checked.') Increasingly over the last 2? years, 'margin' has been a rather fluid thing at IB. You can start with exchange minimums, but IB has been working singles and FAs over pretty well. Whether you end up with a U(niversal) or F(inancial)A(dvisor) account, the margin should likely be the same. As southall noted, don't be too surprised if you answer those rights/responsibilities questions in such a way to trigger Pro status (and higher data charges per the exchanges). If you take fees as an FA, that too will trigger Pro status.

BEST WISHES.
 
EU requires you to file more information since you're classified the same as funds or banks, some is filed by IB but you still have to pay for it. It was a nuisance years ago and is now probably worse.
 
You have to pay for a LEI code.

You will with certainty pay the higher professional data fees – it does not depend on answers you give.

Much more paperwork to open the account. Especially the FATCA paperwork is cumbersome and can be costly if you choose the wrong status. I know someone who has paid EUR six figures for attorneys, because his first attorney chose the wrong FATCA status.

No debit card associated with the account when it is introduced in Europe allegedly later this year.

As I understand it (however, I am uncertain on this one), you cannot transfer funds directly to personal accounts at your bank or other brokers. You have to transfer funds exclusively to accounts in the name of the limited entity.
 
morbal23 said:
When you say file more, you mean Anti-Money Laundry, KYC and so on right?
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What Maverick said, LEI. There will probably be other things if you trade CFDs for example. Combined with data fees and such, they're significant for a small-time one-man operation.
 
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