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 Interactive Brokers (IBKR), IBKR users, welcome!

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dwRK
post Feb 21 2022, 08:26 PM

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QUOTE(Toku @ Feb 21 2022, 05:02 PM)
I think it doesn't matter if your broker account is IBKR USA or IBKR UK, if your asset is US domiciled, it will be subjected to the domiciled country estate tax law. If you hold US stock, even in IBKR UK account, IBKR UK will keep your US asset in their US broker branch.

Vice versa, if you hold UK stock in IBKR USA account, it is subject to UK estate tax law. UK has no estate tax.

Conclusion is, if you want to avoid US estate tax, try to keep less than 60k of US asset. However, USD cash in US bank is not counted as asset. If may try to invest in Irish ETF which domiciled in Ireland that hold US asset. That way you can save 15% WHT as well as avoiding US estate tax.
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UK is inheritance tax

keep < 60k is not an option

any cash with us broker is counted for estate tax... with uk broker is not

This post has been edited by dwRK: Feb 21 2022, 08:28 PM
dwRK
post Feb 22 2022, 11:47 AM

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QUOTE(Toku @ Feb 21 2022, 10:28 PM)
USD cash in bank is not counted for US estate tax. USD cash in broker account is subject to US estate tax.
Other foreign currency is not subject to US estate tax as they are kept in respective countries bank account.
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us law say CASH in us bank is not counted... CASH in broker account is counted... afaik, there is no distinction to currencies... whilst it does distinguish between us stocks and non-us stocks, so this omission probably imply foreign cash is also counted...because they cant be so stupid right?

you're trying to make a case based on CASH in us banks is not counted, therefore cash kept by ibkr usa, especially in foreign currencies in foreign countries should especially not be counted, because you sent in sgd to a singapore bank or eur to a europe bank...and not usd to us bank... imho, you sent it to ibkr usa and is now under their custodianship... where they keep it is immaterial...

anyways i dunno for sure... best to contact cs or tax lawyer to ask the question... with this said, ibkr uk better than ibkr us is still correct
dwRK
post Feb 22 2022, 02:11 PM

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QUOTE(Toku @ Feb 22 2022, 01:20 PM)
I think Ibkr uk and Ibkr us is comparable if your focus is the risk of US estate tax. Because it is the US 'Situ' asset that is matter. Only US 'Situ' asset is subject to US estate tax but there is exception like cash, bonds & ADRs. Below are some screenshots on this topic from Deloitte, EY, bogleheads and IRS.

The reason I believe foreign cash is not affected is because it is not a US domiciled holding. It is the legal tender of the other countries and the account housing those cash is actually resides in the respective countries of the legal tender notes. Say if you convert USD to SGD in Ibkr uk account, the SGD is actually kept in a corresponding bank in the SGD account in Singapore. So it is not a 'Situ' asset to US and is not subject to US estate tax.

It surprises me that certain US bonds is also not subject to the estate tax.

user posted image
user posted image
user posted image

user posted image
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you are making an assumption that all foreign currencies under ibkr will be kept in their respective country... and any currency conversion means they must also make a cross border transaction... I doubt this to be the case... but fact is we don't know...

let's just focus on usd... us law says usd held by us broker is us estate taxable... you just need to check if usd held by uk broker is it the same...


dwRK
post Feb 22 2022, 02:14 PM

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QUOTE(Hansel @ Feb 22 2022, 01:42 PM)
tq for this useful news.
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bro you opened ibkr account ar?... or just lurking here... smile.gif
dwRK
post Feb 22 2022, 11:16 PM

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QUOTE(Toku @ Feb 22 2022, 09:22 PM)
I tried deposit different currencies thru IBKR US and I got all the different bank address, swift code and account # in accordance to the country of the currency from IBKR US. It seems clear that IBKR has respective accounts in various countries to keep the currencies. You may try using IBKR UK to deposit USD and see if it provides you with a UK addressed bank or US addressed bank.

» Click to show Spoiler - click again to hide... «


ib considers these to be major currencies with good liquidity and aml control, and have set up accounts to facilitate deposits.

You can hold and trade a lot more other currencies... many do not have a corresponding bank

» Click to show Spoiler - click again to hide... «


there is this thing called foreign exchange accounting...

dwRK
post Feb 22 2022, 11:23 PM

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QUOTE(silverwave @ Feb 22 2022, 11:08 PM)
Hi, for IBKR day trading, must it be a normal cash account or margin only?

3 day trades within 5 consecutive days seems ok for those below USD25k.
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cash acc must wait for T+2 days for to settle... trade any earlier you violate free riding trading regulation and you get suspended... margin account no such problem... if you can manage obviously no problem with either

This post has been edited by dwRK: Feb 23 2022, 08:42 AM
dwRK
post Feb 23 2022, 12:08 PM

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QUOTE(silverwave @ Feb 23 2022, 10:47 AM)
Meaning if i buy on a Monday, i can only sell on Thursday/Friday right?

In IBKR, can we have 2 accounts, margin and cash or either 1 only?
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my understanding you can buy and sell on monday... thursday can trade again
dwRK
post Feb 26 2022, 06:31 PM

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QUOTE(TOS @ Feb 26 2022, 06:28 PM)
No newspapers on Saturdays and Sundays due to "labour shortage in library" as a result of pandemic laugh.gif

Anyway. not sure if you guys like to read The Economist. Just realize my uni has electronic subscription as well, next time I will just share the permalink directly. 

Also some news for prospective or current TSMC shareholders published by 天下杂志 from Taiwan. https://zh.wikipedia.org/wiki/%E5%A4%A9%E4%...%9B%9C%E8%AA%8C

Enjoy.

The Economist (5th Feb 2022 edition)

https://drive.google.com/file/d/19dHLgCyxMd...iew?usp=sharing

The Economist (12th Feb 2022 edition)

https://drive.google.com/file/d/1YnSkHvyaq-...iew?usp=sharing

天下杂志 12-01-2022 articles related to TSMC

https://drive.google.com/file/d/1N6x4URRBZF...iew?usp=sharing
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you really have too much free time... lol

BTW... you doing MBA or what in HK?
dwRK
post Feb 26 2022, 11:23 PM

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QUOTE(TOS @ Feb 26 2022, 09:44 PM)
You guys don't like to read the magazines and newspapers I posted? I can stop uploading them if that is the case.

Now I am doing my undergrad, BSc in Physics, but my interest these days are in Finance, and I am please to find out that there are research works combining both Physics and Finance/Economics, a field called "physical economics"

Pretty interesting stuff and that is my future research topic for my postgrad study (hopefully in Singapore, BTW gonna go SG this summer for a 3-month research exchange program at SUTD).

The free time is due to the nature of the coursework for me this semester, as it's mostly writing reports, I can prepare them earlier. I only have one mid-term and final exam to take, so the workload is a bit lighter for the study part, though pretty heavy on writing assignments. I need some rest and "standing" time, so standing while scanning newspapers and magazines just to kill time and rest in a quiet library.
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i used to subscribe to the economist and others... but nowadays I don't read anything anymore... lol... I hope many folks appreciate your efforts... it really does take a lot of time

I was just curious with all the financials and business info you keep posting, that you might be doing research in this area. smile.gif


dwRK
post Feb 27 2022, 01:44 PM

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QUOTE(TOS @ Feb 27 2022, 12:41 PM)
Oh what do you read these days for business news? Bloomberg? Reuters?

Not that much efforts actually, just scan the pages into a single PDF files or multiple PDF files and save it to my thumdrive (all done by the scanner automatically), then I just split and reorganize some of them e.g. ETF stuff to the ETF thread, others here at IB etc. before uploading them to Google Drive and share the link. biggrin.gif

I hope you find them interesting anyway.
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i just read the charts and ignore the noises... smile.gif

having said... with fa info to backup ta would be perfect
dwRK
post Feb 28 2022, 05:13 PM

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QUOTE(TOS @ Feb 28 2022, 05:02 PM)
yo physicist. I am pretty sure a Physics student can solve this. tongue.gif

The calculation depends on the share price though, but since the share price fluctuates, it's nearly impossible to compute. Most people would trade less than 300k shares a month.

So, if given this simplification, then you only have one condition to deal with. 0.35 USD minimum, 0.0035 USD per share thereafter, an upper bound of 1% trade value.

For a single purchase, in graph, it would look something like this:

user posted image

Maybe you can recall your "Monte-Carlo method" to simulate fluctuating share prices with a given purchase value and an initial stock price, then run through your simulation to find the condition of purchase which incur the minimum fee. (Sounds like an optimization problem.)
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and so... the outcome of buying say 100 shares... you have a fee of X(P10), Y(P50), Z(P90)... lol

dwRK
post Mar 10 2022, 10:26 AM

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QUOTE(InvesttoLearn @ Mar 10 2022, 10:23 AM)
Hi guys, i encountered an issue last night after selling 1 unit of share but i realized that my buying power is reduced by that selling amount.

Cash account. Any sifu can help?

Thank you
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your cash not yet comes in... t+2...
dwRK
post Mar 17 2022, 07:26 PM

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QUOTE(TOS @ Mar 17 2022, 07:11 PM)
dwRK Hansel

A tax question (today is Roche's ex-date. Dividend coming in in 3 days time.)

If assume I stay in SG for 90 days (circa 3 months), and divide the rest of my time in 2022 evenly in Malaysia and Hong Kong, i.e. say 137 and 138 days, respectively. (of course unlikely so exact since I am most likely a HK tax resident for 2022, but just a hypothetical question.)

That means I will not be a tax resident of either SG, MY or HK. So if this is the case, where does my tax residency belong too? And how am I suppose to reclaim my withholding tax if I am not a tax resident of all 3 places?
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go look up tax residency and substantial presence test... it's not just 2022... need to see 2021...2020...

you are most likely tax resident Malaysia... on the tax year you move, you can also pro-rate your days and be both tax resident Malaysia and tax resident HK...

This post has been edited by dwRK: Mar 17 2022, 07:26 PM
dwRK
post Mar 18 2022, 09:21 AM

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QUOTE(Lon3Rang3r00 @ Mar 17 2022, 10:07 PM)
Dear Sifu/s, just wanna ask how regular you guys topup? let's say i plan to have a commitment of investing Rm200/month into IBKR,  should i hold and topup every couple of month or there's not much impact?
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QUOTE(Hoshiyuu @ Mar 17 2022, 10:39 PM)
» Click to show Spoiler - click again to hide... «
QUOTE(Takudan @ Mar 18 2022, 12:33 AM)
» Click to show Spoiler - click again to hide... «
QUOTE(polarzbearz @ Mar 18 2022, 12:57 AM)
» Click to show Spoiler - click again to hide... «
ideas are good and valid... but i'll give y'all a more balance view

in a bull market like the us has been in the past 13 yrs... time in market is just as important

so whilst depositing every month... you lose out in fees... you win back in capital gains+dividends... take voo or qqq as example, y'all can do the maths to confirm wink.gif

obviously in a bear market... take your time... laugh.gif

dwRK
post Mar 21 2022, 08:42 AM

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QUOTE(TOS @ Mar 20 2022, 09:20 PM)
Wow I can prefer my tax residency in certain locations? That means I can choose my tax residency?

From what I have checked, based on dwRK's advice, the latest version of HK-MY DTA. https://phl.hasil.gov.my/pdf/pdfam/Hong_Kon...UA_366_2012.pdf

Based on the (English version) Article 4, "Resident", I am a MY resident which is the case if I stay less than the 180 days in a year of assessment (or less than 360 days in 2 consecutive years of assessments). But if I meet that requirement, I am considered to be "domiciled in Malaysia", so "by reason of domicile", as paragraph 2a) says I am deemed a resident to Malaysia since my permanent home is available there.

So, to me, there are no two ways about it, I am a MY tax resident. At least that is how I interpret the DTA. You have a different view?

Also, unrelated to this, Takudan have you tried claiming your Nestle WHT from Swiss FTA before? Just want to know the details of the TT fees charged. If I use a local bank account like Maybank I need to pay for the inbound TT fees? What if I use my SG CIMB account, since the TT fees are waived, I presume that can be used to receive the money (i.e., in SGD)?

Thanks.
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you always default to TR MY... you can change to TR HK if...

1. got job... work visa/permit start date you become TR HK
2. lepak > 180 days but i think need to apply to HK for letter/cert... usually you dont get a visa stay > 180 days... i dunno what circumstances you'll get this...

there may be special provisions for students like in your case... where you lepak 3-4 yrs, can work max xyz hrs no need pay tax, but will never be considered as TR HK even though meet > 180 day test because you are there for a "temporary" purpose of learning... you best check with HK irb, HK forums, ex HK students, etc...

dwRK
post Mar 24 2022, 08:46 AM

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QUOTE(Zephyral @ Mar 23 2022, 09:57 PM)
Hi all, I have been hunting around in the CIMB SG site and some blogs but failed to get a definite answer to the transfer charges.

Some of the blogs I seen about low fees involved transfer to IBKR bank account in HK or SG, but what about transfer from CIMB SG to IBKR account in the US? Specifically the Citibank NA on Wallstreet

What are the charges like?
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you don't know how to look...

https://www.cimb.com.sg/en/personal/help-su...remittance.html


dwRK
post Mar 24 2022, 11:22 AM

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QUOTE(Zephyral @ Mar 24 2022, 11:06 AM)
Thank you for the link. I am aware of it, but not ashamed in saying I don't quite understand which applies in this instance.
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ok lah then dun say cannot find... say found but dun understand... bangwall.gif

Remittance Outward - Telegraphic Transfer

Debit from SGD account or payment by SGD cash... 0.125% commission (min S$10, max S$100) + agent fee (if applicable) + cable charges (flat rate of S$30)

Agent upfront charges... USD - 27

so when you wire sgd 5000 to usa... your total fee is sgd 10 + usd 27 + sgd 30

really cut throat...

dwRK
post Mar 24 2022, 11:58 AM

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QUOTE(Ramjade @ Mar 24 2022, 11:26 AM)
Aren't all banks in Malaysia and sg like that? That's why I avoid using banks at all cost. I don't like to give free money to banks/brokerage.
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malaysia charge you in cheaper ringgit... biggrin.gif
dwRK
post Mar 24 2022, 07:38 PM

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QUOTE(evangelion @ Mar 24 2022, 07:24 PM)
Just wondering, any of you able to buy russia stocks? :confused:
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russian market suspended
dwRK
post Mar 24 2022, 07:40 PM

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QUOTE(Zephyral @ Mar 24 2022, 01:24 PM)
Thank you for the breakdown. That's really quite cutthroat eh.

isn't that kinda more expensive than remittance from Malaysia CIMB itself?
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Yes... my banks cheaper than sg...

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