[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!