IB Advisor Friends & Family account

The procedure is meant to let advisors do the work for their clients without sacrificing security. The sub account would only need to use the STP one time, entering the instructions. After that the advisor can initiate withdrawals at any time to the destination entered by the sub account holder.

 

In the scenario you describe, advisor w/ sub account > 100k in equity, the advisor will receive 2 tokens. I understand this might be confusing and annoying but having one token service both accounts isn't a trivial programming task.

You are correct the F account only needs funds to cover the market data charges.

 

Thanks, IB Salvatore.

I was looking for confirmation that an F account will receive a security token irrespective of its account balance (which is likely to be very small).

One further question. Suppose there're one F account and three sub-accounts, with only one sub-account (not belonging to the advisor) having a balance in excess of US$100,000. Does it follow that two security tokens will be issued - one to the client with the large account balance and another to the advisor (for his Master account)?

Thanks again!

 

When any sub > 100k in equity, the advisor and that account are automatically enrolled.

2 tokens are issues, sub account & Advisor.

 

Thanks, SideShowBob, for your post. Point taken and fingers crossed...

 

I should add I feel safer with IB than the average broker because of the auto-liquidation features....

Nothing is 100% certain in life except death and taxes, but it decreases the odds of IB going belly-up becase of customer losses.

SSB

 

If you plan to trade options through IB's friends and family advisor account keep in mind that TWS will not break up the value of 1 option contract across multiple accounts. I know it's not an issue for most.

If IB goes under and SIPC doesn't cash out investors, i'm screwed. A 'dvp' account looks good now keeping money at a prime with serious tangible global assets--and hopefully they won't puke either.

 

Hi,

Is shorting stocks available in IRA accounts?

Thanks,

ggoom

 

Not exactly.

You can use Single Stock Futures SSF to essentially short a subset of US Equities that are essentially have highest liquidity.

No margin for IRA.

 

You can also buy puts....