Hi Guys,

I've been using interactive broker for the last 3 months trading US Stocks. I funded the account using my US Bank (I used to work in the US - so got some savings la) I also linked my Maybank for withdrawal (also my transferwise borderless acct, just incase)- yet to do any withdrawals though

However, I found a post on lowyat saying Maybank (or Bank Negara) block transactions from IB due to their affiliation with forex? Hence cant fund or withdraw money to a local bank? Link below
https://forum.lowyat.net/topic/4498867/all

I'm planning to trade stocks full-time as I generate a decent income from it every month, and Ive been investing/trading for last 5 years when I was working in the US (not a newbie la )
Planning to register as self-employed for tax/banking purposes - already discuss with a tax lawyer friend - I have shared the conversation (tax for fulltime trader) in this forum for those interested in self-employment/fulltime trading
https://forum.lowyat.net/topic/5102221

One question I couldn't answer my lawyer friend is that - is IB legal in Malaysia? Will BNM block the funds to be transferred back to our local banks?
I don't find any article/documents suggesting IB is illegal in Malaysia - and seems to the first recommended platform if want to trade US stocks from Malaysia.

Hope to get some feedback from Sifus here

I have no idea as I've never used IBKR before.

But if BNM really blocks your withdrawal from IBKR to your MBB.

Maybe you could withdraw your money back to your US bank account. Then from there TT back your money to MBB?

if not recognised and approved by SC / any Malaysia authority = illegal, then it is illegal

Malaysia is not favourable of any international brokers.
Most of the international brokers don't set their business/office in Malaysia too because Malaysia is too conservative and living in own world.

Thou, a lot of us here use IBKR, but we fund in and fund out using our SG bank.

https://forum.lowyat.net/topic/4843925/+3180#entry100026943
https://forum.lowyat.net/topic/4744515/+1120#entry99989071
https://forum.lowyat.net/topic/1440794/+3240#entry100025402

This post has been edited by tadashi987: Feb 18 2021, 01:23 PM

Thanks for your feedback. I have a few more questions

my understanding of not recognized by SC means your funds in IB is not protected by SC/BNM in case anything bad happens (broker bankruptcy) (Can someone validate this)

if its illegal
1. why are we allowed to register IB in the first place (country and taxID Malaysia during registration) - if it's downright illegal, this wouldn't be possible right especially for an established and globally trusted broker - I guess I need to call IB and figure this out

2. In the same lowyat post - the post owner said he can't do the transfer using Maybank but can using CIMB. Another person who replied said he used Maybank FCA to transfer funds. this is confusing

3. So from your SG bank, you guys direct them back to your Malaysia bank for personal use?

4. The broker is not illegal but just not recognized in Malaysia by SC (I've read a similar post regarding Etoro) - so what would be the risk here? Can your bank account be frozen? or only transaction blocks?

I see people post, if the bank block from IBKR, just use Transferwise or Instarem (now it's possible to transfer MYR to USD directly using transferwise borderless acct - I have linked it but yet to do a transfer) - how is this method of transaction legal then? (as you also did with your SG bank), end of the day coming from the same source.

hope I don't sound rude, I'm just thinking out loud. many contradicting points

If it's illegal like what happen to TD and etoro, it will be blocked eventually.

Ignore the SC and BNM living in their own world.

Access to IB will also be blocked like what happen to TD. Use a trustable VPN to access IB if it's block.
As tadashi987 said,
Open a sg bank account and convert your money to SGD and direct deposit into IB SG bank account.

Do not use Malaysian banks to transfer money to sg. Just fintech. Lots of fintech offering money changer rates to send money to sg.

To bring back money to Malaysia use CIMB sg or TransferWise.

This post has been edited by Ramjade: Feb 18 2021, 02:40 PM

And Malaysian law state that if you don't have debt, you can invest unlimited of money overseas. If you have any debt, max you can transfer out of Malaysia is RM1m/year.

This post has been edited by Ramjade: Feb 18 2021, 11:50 PM

As far as i know it is not. Only foreign currency trading outside authorised by bnm is illegal in malaysia. So buying and selling share using ibkr should not. The only problem lies with remittance and fund placement. So far i have no problem buy and sell share using ibkr. Appeciate if you can share your update

Technically they are neither legal or illegal. They have not been granted license and not regulated by SC to deal with securities in Malaysia. But at the the same time they are not on SC's watch list as per this list they have:
https://www.sc.com.my/regulation/enforcemen...stor-alert-list

So the conclusion is still invest and trade at your own risk. But like others pointed out, SC has a track record of adding BIG and REUPTABLE foreign brokers in their watchlist, and making it very hard for us to invest internationally. Big names in their watchlist include TD Ameritrade (parent is Charles Schwab), Tiger Brokers, Etoro, Futu (the new MooMoo app). It's ridiculous and they just want Malaysians to live in a bubble and only invest locally, with collecting stamp duty and taxes locally only.

Open IKBR Singapore, link with CIMB singapore account, then link back to CIMB Malaysia, done.

Malaysia is too outdated. Not like SG got so many choice broker and cheap fee.

What is the meaning of Illegal ?
By law - illegal can mean a crime to use or practice or be associated. IBKR is not illegal is not illegal in this way.

But IBKR is not legally registered as a company in Malaysia.

from this site:

Q: Is interactive brokers legal in Malaysia?
A: Interactive Brokers does not have an office in Malaysia and is not a member of its Bursa Malaysia stock exchange, so its Malaysian clients cannot trade local markets through this broker.

https://trading-digest.com/interactive-brokers-review

This post has been edited by MUM: Jul 8 2021, 11:37 AM

That's a reason why Singapore is one of the important financial hub on earth and Msia isn't.

The answer pretty much didn't answer anything

Means buyer beware?... not a member of bursa, that means no resolve if things happens?

That’s main reason IRB is taxing ppl savings indirectly

It answers that MY is greedy and they want capital pledge before getting SC approval and tax everyone ridiculously

The last round I have done withdrawal to my Maybank account in 2020 from ibkr. Not sure if it's blocked by BNM now or not. But as someone else said, you can withdraw money to Singapore account. Anyway, don't plan to take the money back from there anytime soon, want to put more money in US stock and SG Bank. So not a problem for me.

As for legality in Malaysia, anything not regulated by Malaysia authority is not legal.

Interactive Broker is an international Tier 1 broker regulated by SEC, FCA and other key financial market country in the world. I am not worry.

It is not some faceless company like TriumphFX regulated by some pirate island in Secyhelles or Cyprus, which are totally worthless and and has less credibility than Malaysia's SC.

IBKR the good thing is regulated in major financial hubs in the world which trumps SC regulation anytime 🤦‍♀️

Not grey area. Just Malaysia SC is stupid and narrow minded.

Actually not stupid...they just don't want you to take money out of the country easily.

This post has been edited by CommodoreAmiga: Feb 3 2023, 06:27 PM

Zaman mamak. Never move on with time.

Because of Capital Control policy 🤦‍♀️

Thanks to M 🤦‍♀️

Not relevant already he is a dinosaur now

Is Interactive Broker still Legal in Malaysia?


Is there way to remit/withdraw to/from IBKR via bank wire (not bank wire WISE)?

no license here, but as of 2 months ago, foreigners can trade Malaysian stock and futures via IBKR. So this means they are recognized by Bursa malaysia
malaysian Banks can send USD to ibkr by expensive swift transfer. You cannot send MYR to IBKR

This post has been edited by Medufsaid: Oct 9 2024, 09:23 AM

how about withdrawing from IBKR. what's the cheapest option?

Malaysian govt will never recognise anything with Forex trading for political reasons and Forex is haram

You can transfer back to Malaysia but it is going to be costly as banks gonna take a cut of your money.

For me once money is overseas it won't come back for at least 30 years. It is a one way ticket.

Also if I am bringing the money back, it will be IBKR -> USD to SGD inside IBKR -> SGD into CIMB SG -> CIMB SG to CIMB Malaysia.

to add on to what Ramjade said, if you just want to withdraw USD from IBKR to use, can just withdraw USD to wise and use via debit card. FOC

Withdraw to wise to convert back to MYR is not cheap

This post has been edited by Medufsaid: Oct 9 2024, 10:36 AM

Wise can only hold RM20k. Not worth it.

because I have USD funds in SG bank and overseas. So wish to utilise the USD rather than to convert from Wise MYR > Wise USD > IBKR

Sunshape if you have DBS multi-currency acct, u can send USD to Moomoo SG for free. malaysians can open Moomoo SG acct.

if you have USD in US bank accounts, can ACH your USD to IBKR.

i don't know what's the solution if u have USD in banks other than USA or SG. if you send via SWIFT, all the banks in between will take a fee from your fund

This post has been edited by Medufsaid: Oct 9 2024, 11:30 AM

How about HSBC or UOB SG? Can send USD to MooMoo SG for free?

Yes, my oversea bank supports ACH. But I don't see the wire instruction for USD acc rather than deposit via Wise only as shown in IBKR deposit menu.

How to open MooMoo SG if I have MooMoo MY liao?

This post has been edited by Sunshape: Oct 9 2024, 11:37 AM

only these two methods for deposit:



The account opened is cash account. But I can't open margin account. Why? it kept saying my investment profile/risk is not suitable for margin/leverage blah blah

want to confirm, these are multicurrency HSBC and UOB acct with USD balance already?

This post has been edited by Medufsaid: Oct 9 2024, 12:41 PM

You can always use any sg bank or Malaysian banks to receive the USD. But you will kena charge Forex markup. As the item is USD. You don't have a multi currency account. Hence whatever USD will be converted at bank rate to whatever currency is the account in be it SGD or RM. Then if you choose to send the SGD or RM to IBKR , you will kena charge again. Banks markup the Forex fees by around 2-3%.

The only way is
1.have multi currency account that accept USD be it the RHB or DBS version (in Singapore if somehow you can open DBS which is very unlikely). I know DBS doesn't charge you fee or charge you anything if you already have USD and you send it using DBS.

You can. Change your trading permission.
Regarding moomoo forget about it. Unless you have need for it. Moomoo Malaysia is lousy. That is why I only have moomoo Singapore. Always convert money inside interactive broker where possible as they give you real time market rates without the markup unlike banks. Unless you don't mind giving banks free money.

This post has been edited by Ramjade: Oct 9 2024, 12:18 PM

No. I have multicurrency account with HSBC and UOB SG. So I do not need to suffer conversion losses.

You mean change trading permission from CASH account to margin?

Are you using margin or CASH?

Then use either one of the account to receive your USD and use either one of that account to send USD to interactive broker.
Then your problem is solved. No need to pening using wise.

I am on margin but I treat it like cash account. My balance is always positive hence never been charged any interest.

This post has been edited by Ramjade: Oct 9 2024, 12:28 PM

But the deposit instruction has no info. Only WISE one. then how to send wire?

how much is the swift fees

many thanks. I realised need to change the deposit currency first from MYR to USD. Then can see Wire or ACH.

Now need to settle another issue. The account has just approved yesterday but why the trading permission on stocks is still pending?

And able to change from cash account to margin?

Forgot to ask.

If I use Bank ABC to deposit USD, can I later withdraw the USD to Bank XYZ?

Zero.

Maybe need to fund your account first. Yes can change.

Can. As long as under your own name no issue.

Zero SWIFT fee? If use HSBC SG to send USD, zero SWIFT fee ah?

Nope. Zero is only for DBS. How much you kena charge, that you need to experiment yourself and see. Unlikely you will get zero with HSBC.

This post has been edited by Ramjade: Oct 9 2024, 01:07 PM

better ask your banks



https://www.uob.com.sg/business/help-suppor...es-outward.page

I am learning and first time doing all of this.

Wanna learn from Bro Ramjade to buy one way ticket. LoL

It's very easy. Have strong stomach and don't have itchy hands.

so can skip MooMoo MY?

Sunshape ask your bank about the charges. If no way to send to DBS sg for a cheap fee it's hard to move it around

Moomoo MY have no place at all. Useless broker. No access to their MMF.
Moomoo SG at least got MMF to park your money temporarily.

Ramjade Moomoo MY has USD mmf now if u aren't aware

trying to send USD5k. Will update you all how it works and the fee

How to open MooMoo SG ah?

I am interested in the SGD MMF. Also their USD MMF return is below SG version.

Moomoo sg USD MMF is at 4.8795%p.a

This post has been edited by Ramjade: Oct 9 2024, 02:20 PM

already replied u in the moomoo thread

why the stocks trading permission is still pending one?



To trade cryptocurrencies, is under which option?

Sunshape singaporeans/malaysians cannot trade crypto in IBKR. however, if you are sg citizen/sg PR, you can trade crypto in Moomoo SG

if you are malaysian citizens in Moomoo SG, you cannot trade crypto

Sad. I thought to venture into Crypto.

How about if any funds related to crypto one?

Sunshape you can try to buy

• $IBIT - bitcoin
• $ETHA - ethereum

ETFs but most likely IBKR has blocked malaysians/singaporeans from buying. so you buy from Moomoo

Anyone tested how fast the ACH can be received by IBKR and credited?

1 day is ok or not?

on your own risk

my wise ACH done within 6 hours. Only done once

That time don't have sg bank acct yet, so have to deposit something ASAP into IBKR

SG bank > IBKR is by SGD deposit?

Sunshape FAST transfer to IBKR Citibank N.A. bank account

Can do this but not advisable. USD transfer to different bank institutions under your same name will be withheld 44+ working days due to FINRA policy. I tried with USD 10 and only managed to get it back two months++ later.

This post has been edited by MystiqueLife: Oct 9 2024, 10:06 PM

Zero for DBS are you referring to DBS remit? How did you fill up the FFC and account number for DBS remit since it is direct to personal account instead of corporate account.

Did you mean that after you remitted to different institution (same account name), you only received it after 44+ working days? Such withheld was by IBKR and they only sent out the funds after 44 days?

DBS remit for sending money to IBKR. IBKR give you all the banking details. Just fill up exactly like how IBKR give you the details.

I think it only applies to ACH transfer. It is part of FINRA policy. Both IBKR and Moomoo have same limitation when I test with different banks using ACH.

You mean withdraw USD to Wise and use Wise's debit card to pay in USD?

togekiss yes. imagine u want make small purchases like subscribe to Patreon, can use your monthly 1 FOC withdrawal for that

So, if want to withdraw for big purchases in future, what's the best way to change to MYR?

MystiqueLife follow this

Medufsaid Dont know why ACH deposit is slow and expensive. Banks should lower it and be faster. LOL

Sunshape usa bank transfer still in stone age. if u pick IBKR for USD instead of moomoo u have to face those systems

Hmmm, this will take awhile for funds to arrive.

IBKR wire SGD to CIMB got fees or not?

ACH transfer is free, where got charges??

This post has been edited by MystiqueLife: Oct 10 2024, 11:19 AM

my own bank charged USD30 + 0.15% under OUR.

I found IBKR is too complicated for me. May be I will try Moo Moo SG once the account is approved

My aim is to achieve one way air ticket.

You sure it is using ACH? I transfer from IBKR and Moomoo US using ACH is 0 fees, withdrawal and deposit during testing

I have tried send USD from Moomoo SG, wire charges USD 30 LOL
Don't have DBS account. Damn
So, not using Moomoo SG anymore. Wanted to park in the CSOP MMF

This post has been edited by MystiqueLife: Oct 10 2024, 11:22 AM

What is complicated my boy...

MYR -> SGD -> USD

USD -> SGD -> MYR

That simple only, with MoneyMatch/Sunway Mone/Wise/CIMB SG acting as the middleman...

You can do ACH to IBKR but there will be a wait of 2-3 days... no RTGS system like FAST-MEPS+ backend in SG (backend delay by 12 hours only)...

https://fastpayments.worldbank.org/sites/de..._Case_Study.pdf

This post has been edited by TOS: Oct 10 2024, 11:26 AM

yes, I sent from my bank, not IBKR.

Not this la. I mean to invest with them. I found no road on their trading software. Dunno how to add categories

Are you short-term trader or long-term investor?

which info did u use? ACH & Wire will use different set of details

• ACH
  QUOTE(Medufsaid @ Oct 9 2024, 11:57 AM)
  
  
  
  

  
• Wire
  QUOTE(Medufsaid @ Oct 9 2024, 12:36 PM)
  
  
  
  

  

  
  

This post has been edited by Medufsaid: Oct 10 2024, 11:36 AM

Medium

Damn. I clicked ACH but it asked if my bank is in US. As my bank is not in US, so I clicked no and choose wire.

That's why you get charged wire fees. ACHooo is free

The wire fee was charged by my bank, not IBKR. My deposit is still pending. Not sure how much would be credited.

IBKR first withdrawal of the month is always free. Depending on the bank. Majority charge for incoming wire transfer.

That is why I use DBS remit which send USD for free.
I use cimb/ DBS and send SGD via FAST so it's free.

It's not complicated. You got no patience and dont read the everything on the screen. When I started out there was no one to help me or anyone to ask. I figured out everything myself.

Use the web version. Don't use their program (TWS). Their program is known for not user friendly. They have IBKR desktop which is more user friendly.

He seems short term as no patience.

I am more pro to MT4 forex and crypto trading. Will try out IBKR desktop later.

Although DBS remit USD for free, but the recipient will receive lesser after minus the intermediary bank fees right? When my bank charges me $30 for OUR, it means the recipient will receive the exact amount.

This post has been edited by Sunshape: Oct 10 2024, 02:40 PM

no. dbs still free. knowing ramjade for so long, he won't make any transactions that'll lose him unnecessary fees (e.g., remit USD30 but receive lesser than USD30. this is strictly no-no for him)

Really? So cool.

Say, I use it to remit USD1000 to my HSBC USD account, my HSBC would receive 1000?

If you mean DBS SG USD -> IBKR's Citibank NA account, there is no intermediary charge from IBKR upon receival. I can't find the MT103 SWIFT payment message from DBS... but in theory you can deduce who will pay for the fees from the 71A field:

https://www.globalmediapro.com/content/What...entInstructions