[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!