Interactive Brokers for dummies

Just the question: what are you going to do after the 20 years have passed? E.g. retiring at 30 and running out of money at 50. I guess the main problem is that we don’t know our own longevity.
But you are right indeed: you can spend 50k per year for 20 years. It’s an interesting thought.

Have the government to pay for everything going forward :wink: Well, 30 is a bit too early, but with 45-50 it’s more realistic.

Dear all,

I would like to implement a DCA strategy with a recurring ETFs investment in IB.

I know most of the member in this community follow similar approach and I am interesting to know how you execute that strategy in IB.

So far I set up some orders at the end of each month however the market price always have some kind of impact in my decisions.

From what I understood it is not possible to set up recurring orders in IB, therefore do you just choose a day and time, you go into the platform and buy some stocks when market is open with not even looking at the price?

Many thanks in advance for your comments,

Hi

Luckily the US exchanges are basically open till like 10pm or so. So yeah, I do it exactly the way you described it.

Payday:
Savings rate goes to IB (declare a IB transaction, can be automatic if your savings rate is static and then a bank transfer from neon to IB, can also be automated, if you always save the same amount.)

The best times of liquidity are between 15:30 and 17:30 that’s when both EU and US exchanges are open, so that’s when I do my trades. But honestly, it doesn’t matter, you can also do your trades at 8 or 9 pm if you buy VT f. e. Don’t trade outside of those hours if you buy other stocks and check their exchange opening hours.

And then just convert your CHF to USD and buy VT with your USD (limit order at market price. Check Google, IB data isn’t live (Google: “VT stock price”) - done! and your VT should be there.

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Hi @CHRad ,

Thank you for the reply, I will do as you suggest.

Cheers,

Does anyone have experience with transferring larger amounts of money to IB?

E.g. I want to transfer about 20k - 30k this month. Will my bank or IB ask questions?
Especially since I have an European Account and have to transfer the CHF to Germany via SWIFT.

I usually do 10k per transaction, and it worked good so far.

You should have no problem with those amounts. You may be questioned about proof or source of funds originally, but assuming that is no problem then you’ll be fine. As long as the amounts are being transferred from one account in your name to another in your name then it doesn’t and shouldn’t raise any flags.

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I never had anyone asking questions, even for amounts bigger than 30k.

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My bank called me to ask where it came from but that was it.
It was not blocked or anything, they just called me a week later.

Hello!

Does anyone has experience with the program “Refer a Friend” from Interactive Brokers? I didn’t receive the $200 from a referral. I asked my friend if he had the $10,000 and he had it in 2020. So end of 2021 I would receive my bonus. Right?

I asked the customer service and they only state the rules. When I said my friend opened and maintains the account with more than $10k, they refer to the rules again. Before trying to escalate my ticket with IB, I’d like to know if anyone else had the same problem.

My question to them was: if I didn’t receive, why was that, which rule was not met. Or maybe I received and just couldn’t see it in the reports. So I was asking for help. However now I did already a very good investigation on the money received (by any designation) and the $200 were not transfered to me.

The “Refer a friend” program is still good because of the IBKR stocks the new user receives. However I don’t understand why they would advertise this and not give the bonus.

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You should read the small notes but your friend must spend more than 600$ in transaction fees in his first few months.
Good news for him IB is a cheap broker so it will save him lots of money.
Unfortunately you will never cash in your referral bonus.

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I wasn’t aware of that. I had 2 referrals but I am guessing that I won’t be able to collect those 200 $. Kind of a sleazy move from IB to be honest.
At least the people got their free IB stocks I guess

10k per transaction is the worse solution since it can look like structuring to avoid reporting.

I never had any issues transfering to IB (high 5 to 6 digits).

Would you mind pointing to some document that has these terms?

I could only find this in the Terms and Conditions:
The Referring Client will only receive this payment if the Referred Client opens an account through the shared link, deposits at least USD 10,000 within thirty (30) days, and maintains at least that amount for one year following the opening of the account.

In fact, you cannot find it online but here is what I got from the Support back then:

Initial Description: Why did I not receive my referral bonus?

Response from IBCS at 30-Dec-2021

Dear Mr. FunnyDjo,

Kindly note that flat Fee-Based Referrers earn payouts based on their country of residence. Payouts to referrers outside of the United States are subject to the following rules:

  1. The first payment of $100.00 will be sent when the referred account reaches $333.34 in commissions.
  2. The second payment of $100.00 will be sent when the referred account reaches $666.67 in commissions.
  3. Referred clients must maintain equity of at least $10,000 or USD equivalent in their account.
  4. Payouts are available for up to one year from the opening of the referred customer account.
  5. Referral fees will be paid on a monthly (mid-month) basis.

Please Note

  1. Payments are subject to the terms and restrictions of the program. IBKR is under no obligation to pay out the referral bonus should all terms not be met.
  2. No payouts will be made for any account migrated to a broker or an advisor.

Find more information on the Referral Programs page of the IBKR website: Referrer | Interactive Brokers LLC

Regards,
Varsha A
IBKR Client Services

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This is not a large amount, especially in Switzerland. One of my first transfers to IB was 85k CHF, no questions asked from either side.

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