Hi def, Nice to have a IB representative on this forum. Am I right that this insured bank deposit sweep program apply only to USD cash? Would other currencies be eligible for this insured bank deposit sweep program? One more question. When funds are transferred from IB U.S to local entities such as IB HK, do the funds in the local entities still enjoy the interest income on idle cash balance? https://www.ibkr.com/en/index.php?f=1595 Thank you for your presence here. It's reassuring. I've been a happy IBKR customer so far.
If you guys don't like it change to another broker. IB moved all Australian residents accounts to IB Australia. Rules for foreign currency handling became unacceptable for many presumably to easily comply with new restrictions and service declined. Fortunately other companies have no local representation. Some of IBs local introducers are also less ethically sound than IB so beware of your path to your funds (a friend fell into that trap).
For the record, I still like IB and will maintain an account. I just don't like the effect of being moved to an inferior Australian version.
What's the difference between IB AU account versus IB US account, besides losing the SPIC insurance coverage for IB AU accounts?
Probably quite a number but I don't want to be too negative. The killer for me was that you can't maintain balances in currencies like HKD. Initially it was only USD and AUD.
How are you going to transact in HK stocks if you can't maintain balance in HKD? After you sell HK stocks, where does your HKD cash go?
For IBAU (Australia) accounts., the system will automatically do the conversion to HKD at the interbank rate so not an issue for trading. For the currency holding part we're looking at add additional currencies but the issue is each currency requires separate segregated trust accounts which creates a fair amount of additional work. The ETA though is next year as we'll get margin up and running for non-wholesale accounts first. Obviously this isn't our preferential model but ASIC has their rules which we must comply.
================================================= Dear IB / def Sorry to say that HK Citizens are getting concerns nowadays that our Govt would really take the chance to enforce the foreign currency control. So the question posted is getting more realistic.
I know there are concerns and I don't mean to downplay them but besides personally being heavily involved in the financial space in HK for the past 25 years, all the experts I speak with do not share that same concern. Who do you think would be most hurt, who would such controls benefit and what would it accomplish?
Thanks IB/ def for the prompt reply. May I learn who is the custodian for the IB HK clients for - HK stocks - US Stocks