Account structure with IBUK

If you are a Swiss resident, IB United Kingdom holds your account instead of IB Ireland, and this implies multiple differences to the structure of the account.

Account structure

Your account consists of up to 3 sub-accounts, which are subject to different legal frameworks. These include the securities account, commodities account, and the UK-regulated account:

  • Every account has a securities account. It is the main account through which you trade stocks, most options, currencies and more. This account also allows for making deposits and withdrawals.
  • Trading futures and future options particularly require the commodities account.
  • The UK-regulated account is required for trading non-US index options and futures (e.g. DAX Futures), CFDs, among others.

This account also allows for making deposits and withdrawals. Trading futures and future options particularly require the commodities account.

You can transfer cash between sub-accounts. The transfer is done automatically in certain situations (e.g., to meet margin requirements). Otherwise, you must manually perform the transfer. Please note that in this case, sufficient funds must be available on the respective sub-accounts.

Securities

Commodities

UK Regulated (F)

Traded products
  • Stocks
    (including Penny Stocks)
  • ETPs
    (Exchange-Traded Products)
  • Stock options
  • US index options
  • Single-stock futures
  • Warrants, structured products
  • Certificates
  • Forex (Foreign Exchange)
  • Commodity futures
  • US index futures
  • US futures options
  • Non-US index options
  • Non-US index futures
  • Non-US futures options
  • Metals
  • CFDs
    (Contract for Difference)
Account type

Cash or Margin

Margin

Margin

Special Memorandum Account (SMA)

Yes

No

No

Excess funds sweep to securities account

Continuous bookings:
Yes, provided that this has been specified in the Client Portal (account management). In the event of margin deficits on other sub-accounts or on the main account, free settled funds will be transferred.

No, only a manual, internal cash transfer is possible. You can find more information here: Internal Cash Transfer. In the event of margin deficits on other sub-accounts or on the main account.

Calculation of margin

Separately for each account, and also for all 3 accounts combined.

Deposits/Withdrawals

Deposits and withdrawals of funds are only done through the Securities account. Balances can be transferred between the Securities and UK-Regulated accounts using an internal transfer. For the Commodities account, only an automated transfer can be made.

When you apply for new trading permissions, we will automatically open the sub-accounts for you. In addition, opening sub-accounts does not involve any additional fees.

Internal Cash Transfer

The F-sub-account is used to trade specific products. The main account automatically transfers the required balance for this purpose. However, the corresponding transfer back you need to do yourself.

Learn here how to make an Internal Transfer.

Account Window

You can review the margin requirements and available funds in this section. Pay particular attention to the Currently Available Balance, the Currently Excess Liquidity, and the value Special Memorandum Account.

Open the account window using the account button.

You see the tables Balances, Margin Requirements, Available for Trading, Market Value, FX Portfolio, and Portfolio.

UK Securities, UK Commodities, and UK Regulated accounts make up the total value. UK Regulated refers to the F-sub-account that you use for trading precious metals and non-US index options and futures. You can transfer funds to this account through an internal cash transfer. Alternatively, the F-account will automatically transfer the required amount of money to cover the margin requirement from your Securities account. This may result in a negative cash balance in the F-sub-account or the Securities account. Please note that an automatic transfer from the Securities account to the F-sub-account will only occur if there is a possible margin deficiency. Please also note that you can only use freely available cash balances for this purpose.

NOTE: The securities sub-account will only withdraw available capital from the F-sub-account if there is a margin deficit in the securities account, but not in the case of negative cash balances unless they lead to a margin deficit. You can find a brief example in the leverage explanation under Available for Trading.

ParameterMargin accountCash account
Net Liquidation ValueTotal cash value + stock value + securities options value + bond value + fund value.
Net Liquidation UncertaintyDisplays the uncertainty of the Net Liquidating Value associated with after-hours price changes.
Equity with Loan ValueTotal cash value + stock value + bond value + fund value + European & Asian options valueSettled Cash.
Previous Day Equity with Loan ValueEquity with Loan Value as of 22:00 MET the previous day.
Reg T Equity with Loan ValueTotal cash value + stock value + bond value + fund value + non-U.S. & Canadian securities options value + accrued interest + accrued dividend.Settled Cash.
Securities Gross Position Value (GPV)Equals the sum of the absolute value of all positions except cash, index futures and US treasuries.
Value of a position is price * size * multiplier
CashSettled cash + sales at the time of trade + futures P&L
Interest GrowthInterest that has accumulated but has not been paid or charged.
Settled CashCash recognized at the time of settlement – purchases at the time of trade – commissions – taxes – fees.
Stock Settlement: Trade date + 2 days
Options Settlement: Trade date + 1 day
Cash recognized at the time of settlement – purchases at the time of trade – commissions – taxes – fees.
Stock Settlement: Trade date + 2 days
Options Settlement: Trade date + 1 day
ParameterDescription
RegT MarginInitial margin requirements calculated under US Regulation T rules.
Current Initial MarginInitial margin requirement in the base currency of the account. The initial margin requirement is what is required to open a new position.
Post-Expiry Margin @ Open (predicted)Provides a projected “at expiration” margin value based on the soon-to-expire contracts in your portfolio. Value displays at expiration and are highlighted in red. All other times the value is “0”. The projected value in this field includes the anticipated account value including the expiring contract. To see just the projected margin and excess liquidity value for the expiring contract, double click the entry.
Current Maintenance MarginMaintenance margin requirement in the base currency of the account. This is the value required to maintain your current positions.
Projected Look Ahead Initial MarginProjected initial margin requirement as of next period’s margin change in the base currency of the account.
Projected Look Ahead Maintenance MarginProjected maintenance margin requirement as of next period’s margin change, in the base currency of the account.
Projected Overnight Initial MarginProjected overnight initial margin requirement in the base currency of the account.
Projected Overnight Maintenance MarginProjected overnight maintenance margin requirement in the base currency of the account.
ParameterUK Securities / UK RegulatedUK Commodities
Current Available FundsEquity with Loan Value – Initial margin.This value tells what you have available for trading.Net Liquidation Value – Initial Margin
If the available funds are less than or equal to zero, you cannot enter new positions.
Current Excess LiquidityThis value shows your margin cushion, before liquidation.Equity with Loan Value – Maintenance marginNet Liquidation value – Maintenance margin
Should the Current Excess Liquidity be negative, your account might be subject to the liquidation of positions.
Post-Expiry Excess (predicted)Provides a projected “at expiration” excess liquidity value based on the soon-to-expire contracts in your portfolio. Value displays at expiration and are highlighted in red. All other times the value is “0”. The projected value in this field includes the anticipated account value including the expiring contract. To see just the projected margin and excess liquidity value for the expiring contract, double click the entry.
Special Memorandum AccountLine of credit created when the market value of securities in a Reg. T account increase in value.
Should the Special Memorandum Account be negative,your account might be subject to the liquidation of positions.
n/a
Look Ahead Available FundsThis value reflects your available funds at the next margin change. The next change is displayed in the Look Ahead Next Change field.
Equity with loan value – look ahead initial margin.
Net Liquidation value – Look ahead Initial margin.
Look Ahead Excess LiquidityEquity with Loan Value – Look Ahead Maintenance MarginNet Liquidation value – look ahead maintenance margin.
Overnight Available FundsSame as during regular trading hours.Net Liquidation value – look ahead maintenance margin.
Overnight Excess LiquiditySame as during regular trading hours.Net Liquidation value – Overnight Maintenance margin
Buying PowerCash Account: Minimum (Equity with Loan Value, Previous Day Equity with Loan Value)-Initial Margin
Standard Margin Account: Minimum (Equity with Loan Value, Previous Day Equity with Loan Value) – Initial Margin *4
n/a
LeverageGross Position Value/Net Liquidation.
The leverage may not be greater than 30!
If the leverage on the Securities account or Regulated sub-account exceeds 30, the available cash amount on that account is fully utilized. If you want to open a new position, the Securities account or Regulated sub-account will automatically withdraw cash from the Regulated sub-account or Securities sub-account. However, this is only possible if there is no margin deficit on the Regulated sub-account or Securities account, or if one will not be created as a result of the transfer.
Look Ahead Next ChangeShows you when the next margin period will begin.
Day Trades LeftNumber of day trades still available for 4-day pattern day trader period.n/a

You can configure the display of your currency positions by right-clicking on the column headers, selecting “Adjust,” and compiling the list of data you want.

ParameterDescription
CurrencyOpen positions are grouped by currency.
Total CashAktuelle Cash-Positionen, aufsummiert über alle Unterkonten inkl. Tagesgewinn/-verlust aus Futurespositionen.
Settled CashTotal cash that has settled + futures P&L.
FX CashBarbestand auf dem F-Unterkonto Ihres accounts
Accrued InterestReflects the current month’s accrued debit and credit interest to date, updated daily.
StockReal-time mark-to-market value of stock.
OptionsReal-time mark-to-market value of securities options.
FuturesReal-time change in futures value since last settlement.
FOPs (Futures Options)Real-time mark-to-market value of futures options.
DividendeDividends in Lieu 
FundsCurrent funds balance.
Exchange RateThe currency exchange rate to the base currency.
Net Liquidation ValueTotal cash value + stock value + options value + bond value.
Unrealized P&LThe difference between the current market value of your open positions and the average cost, or Value – Average Cost.
Realized P&LShows your profit on closed positions, which is the difference between your entry execution cost and exit execution cost, or (execution price + commissions to open the position) – (execution price + commissions to close the position).

Your cash Balances and FX trades show separately to not interfere and provide a clear indication. Please be aware that an FX trade does not necessarily match with your current cash balance in a particular currency. You can configure this display by right-clicking on the column headers, selecting “Adjust”, and compiling the list of data you desire.

ParameterDescription
Contract descriptionSymbol and description.
ExchangeAn exchange on which the pair trades. This may not be the executing exchange for the trade.
PositionThe sum of trades executed in the FX market for the selected currency pair.
Unsettled PositionUnsettled currency trades.
WährungCurrency used to buy/sell the FX pair.
Market Value(Position) x (market price).
Market PriceReal-time price of the position.
Average PriceAverage price per contract.
Unrealized P&LThe difference between the trade price and the market price times position, including commission.
Realisiertes P&LRealized profit & loss for the pair.
Zuletzt liquidierenLast liquidation “Yes” or “No” tag. If set to “Yes” this position will be put at the end of the queue to liquidate last in the case of margin requirements. To set, use the right-click menu on the desired position. While you have the opportunity to pre-request the order of liquidation in the event of a margin deficiency in your account, such requests are not binding.

Put a check mark under rows showing zero positions to be able to see already closed positions in the portfolio on the respective trading day.

ParameterDescription
Contract descriptionSymbol and description
PositionQuantity of long/short shares or contracts.
CurrencyCurrency of the contract.
Market Value(Position) x (market price).
Market PriceReal-time price of the position.
Average PriceAverage cost of stock and securities options opening positions, including commissions.
Unrealized P&L(Market value of positions) – (average cost).
Realized P&L(Market value of positions since close of period) – (average cost for these positions). Cut-off times for determining realized P&L for transactions are as follows:20:30 ET for securitiesTwo periods for futures: 17:30 ET and 7:10 ET
Liquidate LastLast liquidation “Yes” or “No” tag. If set to “Yes” this position will be put at the end of the queue to liquidate last in the case of margin requirements. To set, use the right-click menu on the desired position. While you have the opportunity to pre-request the order of liquidation in the event of a margin deficiency in your account, such requests are not binding.

Regulations for day trading

The Financial Industry Regulatory Authority (FINRA) sets certain restrictions for day trades, considering opening and closing a position on the same trading day as a day trade.

All products traded through the securities sub-account must adhere to the so called Pattern Day Trading (PDT) rule. Please see the following tables for an overview of affected financial instruments:

The regulation does not affect you if you use a cash account or if the value of your securities sub-account exceeds $25,000. The day trading rule only applies to the securities sub-account. You can trade the products listed below without any limits.

Afected by PDT rule

  • Stocks
  • ETFs
  • Stock options
  • Warrants
  • T-Bills
  • Bonds
  • Single stock futures

Not affected by PDT rule

  • CFDs
  • Metals
  • Forex
  • Non-US index options
  • Commodity-Futures
  • Index futures

Excess Funds Sweep

Please note: The automatic transfer only takes place between the Commodities and Securities accounts. Hence if you want to transfer cash between the Securities and Regulated account, please do so manually. Learn more about the internal transfer at: Internal transfer

Certain financial instruments such as US futures and US futures options require a different sub-account, the so called Commodities account. Thus it has its own balances and automatically transfers the necessary funds from your main account (Securities account) when required.

However, excess funds will not automatically transfer back. If you frequently trade US futures or US futures options, it is advisable to enable the setting “Excess Funds Sweep” in your account management (Client Portal) to avoid liquidity constraints.

First, log in to your account management (Client Portal). There, you will see the navigation menu on the left side of the screen. Now, click on “Settings” and then on “Account Settings”. Click on the gear icon next to “Moving Excess Balance 1”.

In the following selection menu, select “Transfer to Securities Account” as the transfer method from 2.

You see the following confirmation. We will now automatically transfer any excess balance from your commodities account to your securities account.

We will now automatically transfer any excess balance from your commodities account to your securities account.

Automatic dividend reinvestment

This option allows the automatic investment of cash dividends from common and preferred stocks into the underlying stock. However, it is only possible to activate or deactivate automatic dividend reinvestment at the account level and not select specific dividends for reinvestment.

First, log in to your account management (Client Portal) with your username and password.

Click on the user icon at the top right of the account management (Client Portal) and select Settings. Within the Trading section, please choose the Dividend Election: On the next page, check the Reinvest option and then Continue. Afterwards, confirm the risk agreement by entering your displayed name.

The reinvestment of your dividends also incurs regular transaction fees.

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