Not many here will leave 10k USD in their IBKR account. Per the link below, the 4.08% p.a. is paid to the USD cash portion only. If you have EUR/CHF/SGD etc. they will have their respective cash balance interest rates (also shown in the link below).

https://www.interactivebrokers.com.hk/en/index.php?f=46740

In theory, you can convert all your monies into USD cash to enjoy the 4.08% p.a. interest then convert back to the desired currencies when you need them. But be mindful of transaction costs and fluctuations of FX markets, though the FX will most likely move in your favour*.

(*Empirical data supports the currency carry trade strategy, i.e. higher yielding currencies will appreciate. Sharpe ratio is about 0.5, as mentioned by my derivative professors.)

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In another news, https://www.reuters.com/business/finance/bl...ews-2023-03-02/

I haven't tried those 2 yet, and I use IBKR because you recommended it!
I am quite happy with it, & IBKR being a US public listed company can command traders' confidence. Idle cash is useful because if the market falls, it gives us the ability to buy our favourite stocks at cheaper prices. The s&p performed badly last month, and if idle cash in IBKR pays 4% without withdrawal restrictions, I think it is attractive. Even if Moomoo or Tiger pays more, I don't think its substantial for me to move my account over.

You can buy BIL ETF and earn about 2.6-2.7% p.a. after trading fees/WHT for several thousand USD. That way, you won't lose everything completely if you don't have 10k USD. BIL's underlying assets are all US T-bills, so it's already at the lowest end of the risk spectrum and there is no opportunity cost to risk-free rates (there is nothing more "risk-free" than risk-free rates).

I cannot remember if you can sell BIL and use the cash proceeds to immediately buy beaten-down stocks on a red day (i.e., no T+1 or T+2 settlement needed). Ramjade can confirm if that's the case?

woah so mean direct send via wise (MYR)?

the rate will use wise rate or ibkr rate

Sorry guys if this has been mentioned before.

I need to transfer some money back from Interactive Brokers (IB) and may I know how you set up the bank transfer to Singapore SGD account?

I did the GIRO/ACH method and provided the Bank and Branch Code together with SWIFT. Using HSBC Singapore for SGD transfer. Is this GIRO the right way to do it? ie The money will be sent from IB to their local Singapore bank account (Citibank?) then to my HSBC SGD account? Because there will be inward remittance charges by HSBC. I asked and they say as long as the bank uses SWIFT/IBAAN and transfer from another bank overseas, there will be inward remittance charge.

So is my setup using GIRO/ACH method correct for receiving the money in SGD? For USD is it the same GIRO/ACH method or I have to use the WIRE method?

Appreciate if someone can tell me how to set up the transfer in order not to incur any costs in Singapore bank. I understand IB provides one free transfer each month. Many thanks.

Thanks Ramjade. Sorry why choose Wire and not GIRO/ACH? Have you tried this Wire method and your bank charges you any fee for receiving the money?

Bro,
  From your experience, when should we use Wise and when should we use RHB MCA?

Wise digital card can be created and deleted after use... best security for your account... sending fx around is easier... sending money to Ibkr is cheaper... opening account easier...

RHB can save money when bringing money back... earns interest for some ppl... paywave works (just guessing ... no evidence against unlike Wise)

Are Bigpay's rates better than Sunway Money these days?

Hi friends, just for your information, compared rates between Wise MYR -> USD and Sunway Money (MYR->SGD) + IBKR (SGD->USD) today.

Sunway Money (Friday, 3pm) -> IBKR Forex
10000 MYR = 2975 SGD = 2243 USD

Wise
10000 MYR = 2238 USD

Anyone has experience transferring foreign currencies (eg USD, SGD, etc) into a MCA in local bank ?

I have verified (multiple times) with the local bank that there is no correspondent bank info needed for inward fund transfer into MCA.

Correspondent bank info is required for foreign currency cash withdrawal from IBKR.

Thanks.

Do you guys think it's worth to switch over from local broker to IBKR so that I have access to LSE Ireland Domiciled ETF?

I've calculated using Wise Transfer and after selling the stocks and convert to MYR, it would cost me approximately ~ 1.2%.

The 15% savings on Dividend Withholding Tax using Ireland ETF would take me ~ 4 years to recoup the losses from FX fees caused from the dividends alone.

Or should I stop piling money and dividends into local broker and use IBKR instead of transferring everything over?

Also if I wanna invest etf sp500 Ireland by using USD in ibkr. Which etf symbol should I be buying.

Tq. Happy investing.

i did some online research and found that direct ACH from Wise and even better on Instarem indeed saves more on fees. Instarem seems to be cheaper than Wise these days. Both deduct via FPX from the Malaysian bank then sends via ACH to the US account. No need go via Singapore at all...

I see. Thanks! I assume you would need to be on IBKR Singapore to do that, hmm. Let me explore further, I had only opened an IBKR US account.

see if your IBKR screen allows you to select SGD, if it does, then you can choose to try to open a SG bank account

For the Irish domiciled SPY etf, its CSPX and VUAA  to get the 15% WHT right? Anyone investing in them and if so which?

I do have to let you know that IBKR is doing "limited prop trading", which is unlike most other brokers (including TD Ameritrade).

TD Ameritrade (which promises you 0 commission etc.) route your orders to market makers like Citadel, Virtu etc. Citadel/Virtu and others are taking position against you, not TD Ameritrade.

But this is not the case with IBKR. IBKR may match your orders with other IBKR clients (which is still reasonable), or they may simply take positions against you (e.g., you submit buy order, IBKR sell to you...)

So, IBKR is no longer purely a broker, it's a prop trader, and it's trading against you.

Cheap things come at a price. There is no free lunch in the world of finance.

Just for your info.

Competitive as in? Yes, it's cheap, judging by fees. But you cannot just look at pricing alone. Again, no free lunch. It's cheap because they make money from you in another way: the fact that they can trade against you.

You gain on one hand, you lose on the other.
Of course, to answer Ramjade as well, for long-term investors, the fact that they trade against you won't affect your long-term returns if you are a buy-and-hold investors. But prop trading introduces unnecessary risks. IBKR is not just facilitating the game, it's playing it. Your "broker" could have just charged a fixed commission and earn from both buyer/seller in a typical stock/options trade.

But now, because of greed, they venture further. If they make money by fronting your trade, for instance, the broker will survive, but if they take opposite bets against you and the market sentiment turns yet they have positions which they could not unwind in a short period of time, they will fail. (Then of course, you will claim SIPC can step in... ok this moral hazard part... I cannot argue...)

In short, prop trading destabilizes the broker's finances. You make money in a bull market, like everyone does. When tail risk sets in, it's whole another story. (Citadel, Virtu etc., being market makers, are a different beast.)

I am not saying that there are serious problems with IBKR, but as its users, you gotta know what's going on behind the scene.

It's good to have a second brokerage account to standby, just in case. E.g., I have DBS Vickers + FSM SG, both linked to my CDP account in Spore. Those who can't open a CDP account can have open other brokerage accounts to standby.

Thanks for sharing. Didn't know that about IB

GG Guys! TD Ameritrade Singapore to stop serving retail customers from Dec 1 2023!

By Oct 27th 2023 non accredited investors will be charges a USD 50! Anyone has an account with them!?!? what should I do?!