[Post 116] Learning investing/trading together #29:How to purchase stock using IBKR(Interactive Brokers) mobile

In this learning investing/trading post, I am going to show how to purchase stock through IBKR(Interactive Brokers) through Mobile App

Do check out my other post on IBKR!

Post 181/ Yr 3 Wk 39)Learning investing/trading together #26:How to sign up a brokerage account with Interactive brokers

(Post 182/ Yr 3 Wk 39)Learning investing/trading together #27:How to fund your IBKR(Interactive Brokers) account

(Post 183/ Yr 3 Wk 36)Learning investing/trading together #28:How to convert currency using IBKR(Interactive Brokers)mobile

So, why choose IBKR(Interactive Brokers) as a brokerage?

Pros

• Good customer service, I did ask some queries even before my account was approved regarding whether there is any charges on wire transfer(There are no charges, btw) using the chat interface and was answer promptly
• Fees of $0.005 per share or min $1.00 USD(whichever is higher)

Cons

• Must transfer money to your custodian bank account assign to you and they will update your account balance(Updating of balance in the account generally takes an hour not immediate)
• An activity fee of min $10 per month,if your account is below $100,000(This mean that you will have to trade 5 time per month due to the min commission of $1.00)

Onto the step by step guide on how to purchase stock via IBKR!

1)Transfer money into your IBKR Account

How much to transfer?

• Well, it depends on how much your budget to purchase those stock and whether you have enough in your bank
• Currently, the Brokerage charges for IBKR(US market):$0.005USD/Per share, min $1.00  or $0.035USD/Per share,min $0.35
• Hence, the minimum amount one should invest to maximize the brokerage fee of $1.00 is actually any amount they wish to invest or trade in stock(if you cannot afford a $1 commission fee, well...)
• IBKR is probably the cheapest brokerage available for non-US-tax resident out there.Unfortunately TD Ameritrade has since introduce $0 fees for Sg investors,so TD is now the cheapest.
• ***Note: You can invest in any amount you like, in my personal case I use either $3000 or $5000 or $7000

So you have decided the amount? What's next?

• Transfer the money, of course!
• Please refer to the step by step guide on how to fund your IBKR brokerage account that I have written,here

2)Time to buy some stock!

For me ,i mostly use mobile app to purchase as it is way easier and faster

After you log in to your mobile app,tap the green circle with up and down arrow(green circle)

Tap quote to search your stock ticker 

Enter the stock ticker you wish to purchase e.g

starbuck(sbux)

Tap on the starbucks corp,(*remember all stock in US market are trade in one of the three U.S. stock exchanges: New York Stock Exchange, Nasdaq, and American stock exchange)

You will be brought to the screen below,click on buy

You will then be brought to the screen below

The terms are explained as follows:

Allocation:Your IBKR account number

Buying power:How much cash you currently have in your account to purchase shares

Position:The current number of share you own for this stock(In this case,I own zero shares)

Quantity:How many share you would like to purchase(In my case, I select 10),and the total amount of the share multiply by the limit price

Type or order type: Limit order(buying or selling a share at a specific price, Always choose Limit order!!!), market order(buying or selling a share at the current market price or also known to buy or sell the shares immediately, OR Order get filled immediately)

Limit price:The price you would like to buy/sell your share at(In my case, I select at $74.00)

Time-in-force or Duration: DAY Order(A Day order is a limit order good for that business day only. If the order is not filled by the end of the trading day, the order will expire.This is the order we are going for, for simplicity sake.)

Display size:can ignore it

Another advantage of interactive brokers is that it allow you to attach profit taker as well as stop loss,which some brokers may not include this feature

*When a market is experiencing more buying volume than selling volume, it means that there are more traders buying at the ask/buy price, which has a tendency to push the price up.And likewise for the opposite

                             

After double checking your details ,slide to submit buy and you will be brought to the orders and trade page.If your order is filled, you are done!(Congratulations,You have made your first investment!😁)

Pretty easy right?If you would like a guide on how to purchase stock using IB TWS through desktop,do comment below.

Thanks for reading!

[Post 115] Learning investing/trading together #28:How to convert currency using IBKR(Interactive Brokers)mobile

In this learning investing/trading post,I am going to show how to convert your currency using IBKR mobile so that you will be able to purchase stocks of the particular country that you wish to convert your currency to. 

Do check out my other post on IBKR!

Post 181/ Yr 3 Wk 39)Learning investing/trading together #26:How to sign up a brokerage account with Interactive brokers

(Post 182/ Yr 3 Wk 39)Learning investing/trading together #27:How to fund your IBKR(Interactive Brokers) account

(Post 183/ Yr 3 Wk 36)Learning investing/trading together #28:How to convert currency using IBKR(Interactive Brokers)mobile

1.Log in to the IBKR mobile app

2.Tap on the three bar(Black circle) at the top left hand corner

3.Select convert currency 

4. E.g. i want to convert USD to SGD

5.Select and enter the currency that you have and wish to convert e.g 1 USD

6.Select and enter the currency that you want to convert to e.g SGD

7.Next,Slide to convert and your order will fulfill due to market order(*Do note that your there will be a commission charges, which will count toward your monthly activity fee of $10)

What is market order?

Buy or sell at the current Ask price(Order get filled immediately)
To me,this is the fastest and easiest way to convert your currency using interactive broker and perhaps one of the cheapest way to convert your money.

Next time,if you would like to travel to another country for holiday,do consider using interactive broker as an alternative to the money changer as its spread rate are simply wonderful. Best of all,it can be done in the comfort of one home

Hope you find this post useful!

[Post 114] Learning investing/trading together #27:How to fund your IBKR(Interactive Brokers) account

In this learning investing/trading post, I am going to show how to fund your IBKR(Interactive Brokers) brokerage account. 

Normally for Singaporean investors, we would just simply do a bank transfer. However, for IBKR, we would have to fund your brokerage by wiring money to it(which is pretty much the same as a bank transfer)

*Do refer to my guide on how to set up an IBKR(Interactive Broker) account if you have not done so, here.

So, why choose IBKR(Interactive Brokers) as a brokerage?

Pros

• Good customer service, I did ask some queries even before my account was approved regarding whether there is any charges on wire transfer(There are no charges, btw) using the chat interface and was answer promptly
• Fees of $0.005 per share or min $1.00 USD(whichever is higher) or $0.035 per share or min $0.35

Cons

• Must transfer money to your custodian bank account assign to you and they will update your account balance(Updating of balance in the account generally takes an hour not immediate)

Onto the step by step guide on how to fund your brokerage account in IBKR!

1)Transfer money into your IBKR Account

How much to transfer?

• Well, it depends on how much your budget to purchase those stock and whether you have enough in your bank
• Currently, the Brokerage charges for IBKR(US market):$0.005USD/Per share, min $1.00 or $0.035 per share, min $0.35
• Hence, the minimum amount one should invest to maximize the brokerage fee of $1.00 is actually any amount they wish to invest or trade in stock(if you cannot afford a $1 commission fee, well there are also plenty of zero commission broker but it varies from country to country)
• ***Note: You can invest in any amount you like, in my personal case I use either $3000 or $5000 or $7000

So you have decided the amount? What's next?

• Transfer the money, of course!

2)Transfer your money to fund your IBKR brokerage account

Log in to your Interactive Broker account. At the homepage, scroll down and click on transfer fund(black circle)

Click on Make a deposit

Scroll down and under Bank wire, click on HOW TO WIRE FUNDS

Enter the Sending Institution, Account Number, and Account Nickname. In my case, I use DBS, and my Sending Institution will be DBS BANK LTD, SWIFT/BIC code will be DBSSSGSG, and the account number will be your bank account number. You can check up your SWIFT/BIC code at the SWIFTcodes.com.

Select No to " Is your bank/financial institution located in Hong Kong or Mainland China? ".

Change the currency according to the country you live in.As i live in Singapore, it will be sgd

Enter the deposit amount that you wish to transfer,e.g $3000

Click on No for " Would you like to make this a recurring transaction?"

Then scroll down and click on "Make a deposit"

After getting the routing details,use the routing details to initiate a FAST transfer.

Log in to your IBKR account and transfer fund. In my case, I use DBS, go to transfer, and select To Other Bank Account(Fast). You will then be brought to the page below.

If this is your first time transferring, leave the paying to option as default

Follow the routing instruction as above,

Recipient Name: Interactive Broker LLC.

Recipient Bank: CITIBANK NA

Recipient account: The Bank account number as above

Transfer Amount: Enter the transfer account e.g $3000

Purpose of Transfer: Investment & Securities

Comment for the recipient: Your interactive broker account number, refer to picture below(UXXXXXXX)

Then, click next and you are done

*Do note that Updating of balance in the account generally takes an hour not immediate

Withdrawal is similar to depositing. Although depositing is always Free using FAST, Interactive Brokers only allow 1 Free withdrawal per month or you will be charged SGD$15 per withdrawal.

If you would like me to write an withdrawal article,do let me know in the comments below!

[Post 113] Learning investing/trading together #26:How to sign up a brokerage account with Interactive brokers

In this post, i am going to show how to set up a brokerage account with interactive broker.

So, why choose Interactive Broker(IBKR) as a brokerage?



Pros

Good customer service, asked some queries on the account fee using the chat interface and was answer promptly
Fees of USD 0.005 per share or min $1.00 USD (Cheapest stock brokerage for Singaporean investors to invest in US Stock Market)

Cons

Must transfer money to your custodian bank account assign to you and they will update your account balance(Updating of balance in the account generally takes an hour not immediate)
Onto the step by step guide on how to set up a brokerage account with interactive brokers!

1.Go to https://www.interactivebrokers.com.hk/en/home.php

2.Click on Open account(red circle)

3.A popup box will than appear. Under individual, joint or IRA Account, click Start application

4.You will be brought to a page for creating a username and password. Fill in the email address, username, password and confirm password. Under Country/region, select your residential country. Then click Create Account

5.Go to your mail inbox. You will receive an account confirmation in your mail as shown below ,click verify account

6.You will be brought to this page below. Under the complete a started application, enter the username and password that you have key in earlier and click login

7.Under customer type, select individual and base currency according to the currency that your country is in(in my case,i select Singapore).Simply select of the option listed, for how did you hear about us.Then, click continue.

8.You will be brought to the personals information page. Fill in your saluatation, first name, middle name, last name, suffix, date of birth , gender, marital status, number of despondent.

9.Fill in your address #1 and #2,city, state/province, zip/postal code. You do not need to change the default option for the remaining question such as(Do you have a different mailing option?)

10.Fill in your phone number, country issuance, Identification type, Identification number

11.Under tax residency, Select your country and enter your tax identification number(For singaporean, enter your nric number).Then select your employment and leave the default option as no for "Do you have additional sources of income?"

12.Enter your account information(More will be explained later) and also key in the respective security question.

Cash or margin account?


 


  

Cash Account Pro

  

Cash Account Cons

 

  



Will not short mistakenly


  



Have to wait T+2day for money to settle. Hence,
  no day trading.



 



 


  

Margin Account Pro

  

Margin Account Cons

 

  

         · Allow you to day trade, short or invest

      ·Cash settle as soon as you sell your stock

  



You may accidentally leverage or short the stock



 

*these are just some pro and con that i can think on top of my head


13.Leave the default option for regulatory information as it is.Enter your net worth,liquid networth and annual net income


14.Check the investment objectives,select any options


15.Select Yes for stock and the respective investment product you wish to trade(e.g Forex,bonds).Do not worry too much as the investment product can be change .Fill up the years trading, trades per year, total trades and  knowledge level



16.Select the countries that you would like to trade in(Can be changed after you set up your account)


17.Fill up the Substitute Form W-8BEN if you are a non-US tax resident individuals. Remember to select the option “I am not a resident in a country with a US tax treaty”

18.Select agree to all




19.Next,you will have to enter your mobile, upload the respective identity documents.

20.You can fund your account after your account has been approved, hence there is no hurry in funding your account(Will touch on how to transfer money from your bank to fund your IBKR in the next few post)


Credits mostly to lazybutintelligentinvesting for most of the pictures, do look out for my future post!. Thanks for reading!