Experience Interactive Brokers - 2nd chance


#61

BTW, I logged in to Account Management today and my heart stopped for a moment as it shows NAV $0.00. When I logged in to WebTrader it shows the correct value. Oh, the modern software, a lot of features, even more bugs…


#63

Hi, I am working with the IB simulated trading account for practice. I have also sold 1M$ for Swiss Francs CHF (USD->CHF) to set the “right” start condition (i.e. to have CHF in my account). However in “balances” of my “account” is shows only USD (1,001,037 USD to be precise); should my balance not show the CHF (i.e. the CHF which I received from the sale of the 1M$)? why is the CHF (which I received from the sale of the 1M$) not showing in my account balance?

The fact that my account is showing a total of 1,001,037 USD and not 1M USD indicates that the sale of the 1M USD for CHF must have executed ok - the increase in the total in the account must be due to the value of the CHF increasing relative to the USD (in the unrealized P&L there is shown 1’089).

So, since my account is showing USD, how do I now go about selling the CHF (to simulate what I would do when I open a real account and initially deposit CHF and then convert to USD) - I guess that I will just buy USD and IB will automatically use the CHF which is, lingering somewhere, in my account.

Thanks for your help.


#64

I’m late in joining the game, so just read on the Stock Yield Enhancement Program now. So I’d like to come back to some concerns raised a while ago:

Right, you loose SIPC protection while the ETFs are loaned out. However, you get 102% of cash (collateral) in return during the loan. So IIUC in case the shit hits the fan you’d “just” be sitting on those 102% cash instead of the ETF (which of course could be less than the ETF is actually worth - but at least you’re protected a fair bit.

What additional risk? What I can think of is that IB doesn’t manage to return you the loaned ETF. In that case, from what I understand you’d “just” have to live with the 102% cash collateral. So is that really a risk? or a big risk?

Right, for US citizens paying tax in the US the dividends are not qualified but you instead get payment in lieu of dividends - which are taxed substantially higher than qualified ones in the US.

But IIUC in Switzerland dividends are treated as normal income anyway - and I’m not aware of any difference between qualified and in lieu - or am I missing something?

So overall I’d say with the SYEP:

  • you risk sitting on 102% cash collateral if the shit hits the fan (a risk indeed, but only on additional gains since loaned out, not on the absolute amount)
  • you have a very high likelihood of getting “dividend payment in lieu” instead of normal “qualified dividends” - but IIUC in Switzerland that’s irrelevant
  • you support the evil short sellers (that’s a moral question though)
  • you get a minor additional yield instead (which is probably to be treated as income in Switzerland too I guess)

Is this too good to be true?

Mind you ETFs themselves do this all the time (see e.g. https://www.ishares.com/us/education/securities-lending) - albeit they have actual control over counter-parties, which you don’t have with IB


#65

Any more opinion on the Stock Yield Enhancement Program? I think it could be another 0.05% gain with relatively low risk…


#66

Is it working with ETF?


#67

yes. In the IB Client Portal go into ‘Account Settings’, then ‘Trading Permissions’, then click the ‘?’ next to the Stock Yield Enhancement Program: that’ll show you an estimate on how much you might be paid. I have no idea how good that estimate is, esp long term. Also, my remaining two concerns are: (1) is it really low risk, (2) does this ‘in lieu’ thing have any CH tax implications.


split this topic #68

10 posts were split to a new topic: Fx Trading and Taxes