Interactive Brokers - Deposit Funds

abdul89

Senior Member
Joined
Oct 11, 2010
Messages
512
Hi All

I'm looking for advice from those who have an account with Interactive Brokers. I was hoping to fund my account using Shyft and ACH, but I see that the ACH facility provided by IBKR is one that is initiated within IBKR and therefore needs linking to an actual bank account.

What's the next best (in terms of simplicity and cost) option? Doing a traditional SWIFT transfer from my bank (Nedbank) is a major hassle that requires a long form and physically going into a branch each time.

Thanks
 

smc

Senior Member
Joined
Sep 19, 2005
Messages
651
Well, you could probably fund your IB account in euros via Shyft. That would not be an ACH transfer.
 

HavocXphere

Honorary Master
Joined
Oct 19, 2007
Messages
33,156
I recall them linking what accounts you can withdraw cash from to the same a/c so I'd be careful using anything other than an actual bank acc
 

Tosser

Senior Member
Joined
Aug 12, 2008
Messages
630
Not using ACH, but wire.
Fairly painless though, once set up, which can be a bit of a schlep initially.
My method is to transfer funds into a Mercantile bank account setup via Exchange4Free. Once funds received I call E4F to obtain an exchange rate. If happy with the rate, then they convert the currency in the mercantile account, and wire it to IBKR. I also create a deposit advise on IBKR ( not sure if entirely necessary, but worked so continue to do this).
Haven't tried withdrawals yet, but don't think you can use ACH if not a US account.
 

Lukcydog

Well-Known Member
Joined
Aug 13, 2012
Messages
356
I've setup a wire transfer on the IB platform.

1610459682257.png

You can setup the beneficiary on shyft once and on IB once then re-use them whenever you want to do a transfer. No need to go into a branch...

Let me know if you need help, I'd be happy to assist. It's a bit of a learning curve with IB but once everything is setup it's a dream to use.
 

abdul89

Senior Member
Joined
Oct 11, 2010
Messages
512
I've setup a wire transfer on the IB platform.

View attachment 992576

You can setup the beneficiary on shyft once and on IB once then re-use them whenever you want to do a transfer. No need to go into a branch...

Let me know if you need help, I'd be happy to assist. It's a bit of a learning curve with IB but once everything is setup it's a dream to use.
Thanks I managed to figure it out (same process as you). Once Shyft does the transfer I've noticed that IB actually changes the deposit type automatically from Bank Wire to ACH Deposit or something similar. I've done two transfers so far with no issues.
 

Jose88

Member
Joined
Nov 20, 2015
Messages
23
How about just funding the account with ZAR , then converting currency on IBKR itself ? Once you create a deposit advice on IBKR , could you not just use the details to make the payment from SA bank ?
 

Cage Rattler

Well-Known Member
Joined
Nov 29, 2005
Messages
403
Can also use ACH transfers via Transferwise account. Btw, Tradestation more problematic as they don't link with Transferwise.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
3,128
How about just funding the account with ZAR , then converting currency on IBKR itself ? Once you create a deposit advice on IBKR , could you not just use the details to make the payment from SA bank ?

SARB does not allow this.
 

UYScuti

Active Member
Joined
Dec 4, 2010
Messages
91

Lukcydog

Well-Known Member
Joined
Aug 13, 2012
Messages
356
I am thinking of opening an IB account so I was looking into this. What is the cheapest option?

I was looking at this calculator: https://docs.google.com/spreadsheet...gsY0fJzzWvrRV2IOnKE_witg_U/edit#gid=160542905. from https://investorchallenge.co.za/

It appears as if Shyft is the cheapest for for all amounts above 10 000?
Are there any hidden fees or complexities that I am missing? Or will it always make sense to use Shyft and not these specialist places like Exchange4Free or Rand Swiss?
Shyft is my goto since it launched. No hidden fees ($14 flat rate for the transfer). I transfer $3000 on occasion which makes the fee 0.47%, i'm too impatient to wait for $10,000 when my $3,000 could start working right now.
 

UYScuti

Active Member
Joined
Dec 4, 2010
Messages
91
Shyft is my goto since it launched. No hidden fees ($14 flat rate for the transfer). I transfer $3000 on occasion which makes the fee 0.47%, i'm too impatient to wait for $10,000 when my $3,000 could start working right now.
Thanks. Do you know what they charge on the spread when buying foreign currency? That spreadsheet I posted says 0.55% but I cannot find anything official to back it up. When asking their support they could not tell me and said:

I would not be able to advise on the percentage as the rate you pay will depend on the current market rate and the market segment you fall under. For instance Private and Wealth and Investment client receive preferential rates.

Makes we wonder if I need to become a Standard Bank client to get a decent rate. Also support not being able to give you an indication of the rate without signing up is pretty frustrating.
 

smc

Senior Member
Joined
Sep 19, 2005
Messages
651
SARB does not allow this.
SARB does allow that, if you have a good reason. You just have to get permission from SARB/your bank. However, IB won't convert Rand to anything else on their system. They allow FX trading in Rand, but converting a "real" Rand currency balance isn't allowed.
 

Lukcydog

Well-Known Member
Joined
Aug 13, 2012
Messages
356
Thanks. Do you know what they charge on the spread when buying foreign currency? That spreadsheet I posted says 0.55% but I cannot find anything official to back it up. When asking their support they could not tell me and said:
I just took a look (7:45am) and at Google's R14.90, Shyft is giving me a rate of R15 (ie spread is 0.67%). Its appx 9c. because of their % spread, the number of cents increases as the ZAR devalues...


As for your 2nd comment: You have nothing to lose by joining Shyft and taking a look at the rates they give you and compare against what im currently getting like above.

Wrt to the private/wealth and investments, I'm skeptical whether the fees you pay monthly justify the preferential rates...
 
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