Tools & Resources – Synapse Trading

Interactive Brokers: One of the Lowest Margin Fees

Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

Investing in the stock market can be an excellent way to grow your wealth over time, but it can also be costly if you’re not careful. One of the biggest expenses when investing is trading costs, such as commissions and fees. Fortunately, there are ways to minimize these costs, and choosing the right online broker is an important part of the equation.

When comparing online brokers, you’ll want to look at a variety of factors, such as account minimums, investment options, and customer service. But one of the most important considerations should be trading costs.

Some online brokers charge flat fees for trades, while others charge a percentage of the trade’s value. Depending on the size and frequency of your trades, one option may be more cost-effective than the other.

Another cost to consider is margin fees. Margin trading can be a powerful tool for experienced investors, but it can also come with high fees. Interactive Brokers is one online broker that stands out in this regard.

According to a recent report from StockBrokers.com, Interactive Brokers has the lowest margin fees of any online broker. Margin fees can add up quickly, especially if you’re making frequent trades, so this can be a significant advantage for traders looking to keep their costs low.

But low margin fees aren’t the only thing to consider when choosing an online broker. You’ll also want to look at other factors like account minimums, investment options, and customer service.

For example, some online brokers require a minimum balance to open an account, while others have no minimums. If you’re just starting out as an investor, a low or no minimum balance requirement can be a big advantage.

Investment options are another important consideration. Some online brokers offer a wide range of investment options, including stocks, bonds, mutual funds, and more. Others may specialize in a particular type of investment, such as cryptocurrency.

Finally, customer service can make a big difference when it comes to choosing an online broker. You’ll want to look for a broker that offers responsive customer support, preferably 24/7. You should be able to get help when you need it, whether you have a question about your account or need technical assistance.

In conclusion, if you’re looking to invest in the stock market, it’s important to choose the right online broker to minimize your trading costs.

Interactive Brokers is one option to consider, as it offers some of the lowest margin fees in the industry.

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

0 Comments/by Spencer Li

Interactive Brokers: Earn Up to 4.33% on Your Uninvested Cash Holdings

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

IBKR is offering clients the opportunity to earn interest on long-settled cash balances, with accounts of over USD 100,000 receiving full interest rates, and smaller accounts receiving rates proportional to their size.

Clients with both large long and short cash positions can subscribe to an auto-swap program that authorizes IBKR to execute forex transactions, improving overall interest rate benefits/costs.

This program is only available to qualifying investors with cash balances of at least USD 10 million or equivalent, or those who qualify as an Eligible Contract Participant (ECP) in the US. Interest accrues daily and IBKR posts interest payments on a monthly basis on the third business day of the following month.

Please note that balances held in JPY or RUB may receive a negative rate, while other currencies may receive 0% interest.

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

0 Comments/by Spencer Li

How Place Trades (Buy & Sell) on Interactive Brokers (IBKR)

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

How Place Trades (Buy & Sell Orders)

1. Click on “Trade”.

2. Click on “Order Ticket”.

3. Choose which products that you will like to trade.

4. For example, I will like to purchase 2 stocks of Coca-Cola. I will key in the company name and press enter.

5. Select the correct product you are looking for.

6. The page will update accordingly. Click on “Buy”.

7. Adjust the quantity to 2. (For more information on Order Type, Time-in-force and Attach Orders, check after step 8)

8. Click on “Submit Order” to purchase the 2 stocks! That’s it!

Types of Trade Orders

Limit: A Limit order is an order to buy or sell at a specified price or better. The Limit order ensures that if the order fills, it will not fill at a price less favorable than your limit price, but it does not guarantee a fill.

MidPrice: The MidPrice order is designed to split the difference between the bid and ask prices, and fill at the current midpoint of the NBBO (National Best Bid and Offer) or better. Set an optional price cap to define the highest price (for a buy order) or the lowest price (for a sell order) you are willing to accept.

Market: A Market order is an order to buy or sell at the market bid or offer price. A market order may increase the likelihood of a fill and the speed of execution, but unlike the Limit order a Market order provides no price protection and may fill at a price far lower/higher than the current displayed bid/ask.

Stop: A Stop order is an instruction to submit a buy or sell market order if and when the user-specified stop trigger price is attained or penetrated. A Stop order is not guaranteed a specific execution price and may execute significantly away from its stop price. A Sell Stop order is always placed below the current market price and is typically used to limit a loss or protect a profit on a long stock position. A Buy Stop order is always placed above the current market price. It is typically used to limit a loss or help protect a profit on a short sale.

Stop Limit: A Stop-Limit order is an instruction to submit a buy or sell limit order when the user-specified stop trigger price is attained or penetrated. The order has two basic components: the stop price and the limit price. When a trade has occurred at or through the stop price, the order becomes executable and enters the market as a limit order, which is an order to buy or sell at a specified price or better.

A Stop-Limit eliminates the price risk associated with a stop order where the execution price cannot be guaranteed, but exposes the investor to the risk that the order may never fill even if the stop price is reached. The investor could “miss the market” altogether.

Market on Close: A Market-on-Close (MOC) order is a market order that is submitted to execute as close to the closing price as possible.

Limit on Close: A Limit-on-close (LOC) order will be submitted at the close and will execute if the closing price is at or better than the submitted limit price.

Time-in-Force for Orders

The time in force for an order defines the length of time over which an order will continue working before it is cancelled.

Good Till Cancel: An order that uses the Good-Til-Canceled (GTC) time in force will continue to work until the order fills or is cancelled . The ability to enter a bid well below the prevailing trading price for most asset classes, or an offer higher than its current level, allows an investor to place a resting order for days, weeks or months in advance without having to repeat the process each day.

At the Opening: Use this to send a market-on-open (MOO) or limit-on-open (LOO) order.

Day: A Day order is canceled if it does not execute by the close of the trading day. Unless otherwise specified, every order is a Day order.

Attach Orders

Profit Taker: It is an opposite side limit order designed to close a position while it is profitable. (For example, you purchase a stock at $10 each. You can indicate your PT LIMIT PRICE at $11 to make a profit of $1 per stock)

Stop Loss: It is an opposite side stop order designed to close out a position with only a user-specified, limited loss. (For example, you purchase a stock at $10 each. You can indicate your SL STOP PRICE at $9 to cut your losses if the stock is plummeting)

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

0 Comments/by Spencer Li

How to Deposit and Withdraw Funds in Interactive Brokers (IBKR)

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

How to Deposit Funds in Interactive Brokers (IBKR)

1. Login to your Interactive Brokers account in your browser. Click on “Deposit”

2. Click on “Use a new deposit method”.

3. Select the currency you want to deposit.

4. Click on “Get Instructions”.

5. Fill in the relevant details. Then click on “Get Wire Instructions”.

6. This is the page where you get the information to transfer the money to. Click on “Finish” when you are ready.

7. Go to your bank and transfer the money to the bank details that you got from Step 6.

8. Check if the money has successfully transferred after a few hours. I highly recommend transferring a very small amount of money on your first time. Then you can transfer again once you are sure that all the details are accurate.

9. Once you have saved your bank information from Step 5, it’s easier to access them again when you click on “Deposit”.

How to Withdraw Funds from Interactive Brokers (IBKR)

One free withdrawal is allowed per calendar month. Subsequent withdrawals using this method will incur a fee of SGD 15.00 at IBKR. Your bank may charge a fee for an incoming wire.

1 Login to your Interactive Brokers account in your browser. Click on “Withdraw”.

2. Select the currency you want to withdraw.

3. Select the method of your choice. For GIRO/ACH (refer to Step 4 to Step 8) and Bank Wire (refer to Step 9 to Step 12).

(Note: If you are doing GIRO or Bank Wire to the same bank account, you NEED to create the method accordingly. This is due to the differences in charges and processing time for either method.)

GIRO/ACH

4. Fill in the relevant details and click “Save Bank Information”.

5. Confirm your bank details again. Complete your Signature and click “Continue”.

6. Your bank information has been saved.

7. Repeat Step 1 to Step 3 again to initiate the GIRO/ACH transfer to the selected account.

8. Key in the withdrawal amount and click on “Create Withdrawal”.

Bank Wire

9. Fill in the relevant details and click “Save Bank Information”.

10. Check your bank details again. Click “Continue”.

11. Your bank details are saved.

12. Repeat Step 1 to Step 3 again to initiate the Bank Wire transfer to the selected account. Key in the withdrawal amount and click on “Create Withdrawal”.

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

0 Comments/by Spencer Li

How to Open & Set Up an Interactive Brokers (IBKR) Account

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Before reading this guide, the first thing you will need to do is to open an Interactive Brokers (IBKR) account, before you can start trading.

How to Open an Interactive Brokers (IBKR) Account?

1. Click on “Open Account” button on top right of the screen.

2. Click on “Start Application” to being.

3. You are required to create an account. Fill in the relevant details.

4. An account verification email will be sent to your email address upon creation of the account.

5. Log into your email and click on the link from IBKR.

6. Log in to your IBKR account to begin the account opening.

7. Select accordingly. Use the image below for assistance.

8. If you are a Singaporean, you can log into your Singpass. (If you do not have Singpass, you will have to manually fill in all the required information at Step 10 and 11.)

9. Select accordingly for your preferences. If you wish to dabble in stocks and bonds, choose “Securities”.

10. Fill in all the information.

11. Fill in all the information.

12. Key in your employment details.

13. Complete the “Source of Wealth” and the base currency. (You can change your base currency in the account settings after your account is approved.)

14. The 3 security questions are to protect your account if you ever lost your account password or for your verification in the future.

15. Confirm your mobile number (this step is optional)

16. Select the relevant option that applies to you.

17. Fill up the relevant information. Take note of the investment experience that you will be declaring as some products will not be available to you if you declare that you have little to no experience.

18. Review your tax residence information. Once you have finalize it, sign and click “Continue”.

19. Review the complete information as what you have filled from the earlier steps. Once you have finalized, sign and click “Continue”. The application is then processed.

20. You will then proceed to upload and submit your relevant documents online to IBKR.

21. Wait for IBKR to approve your application. In the meantime, IBKR will request certain documents from you if they are missing or incomplete.

22. Once your account is approved, you will receive an email from IBKR. Congratulations!

If you found this guide useful, you might also want to check out our full list of guides for Interactive Brokers!

0 Comments/by Spencer Li

Interactive Brokers: One of the Lowest Margin Fees

Interactive Brokers: Earn Up to 4.33% on Your Uninvested Cash Holdings

How Place Trades (Buy & Sell) on Interactive Brokers (IBKR)

How Place Trades (Buy & Sell Orders)

Types of Trade Orders

Time-in-Force for Orders

Attach Orders

How to Deposit and Withdraw Funds in Interactive Brokers (IBKR)

How to Deposit Funds in Interactive Brokers (IBKR)

How to Withdraw Funds from Interactive Brokers (IBKR)

GIRO/ACH

Bank Wire

How to Open & Set Up an Interactive Brokers (IBKR) Account

How to Open an Interactive Brokers (IBKR) Account?

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