IBKR Interactive Brokers

 

IBKR Interactive Brokers / Wise

IBKR is an international online brokerage. A quick review on its strengths.

Strengths

  • very good brokerage with access to many many markets
  • funding can be performed from Switzerland too - CHF/EUR/GBP funding can easily be performed by a standard IBAN transfer
  • very competitive USD cash interest rates, currently up to 4.83% Interest Rates | Interactive Brokers LLC
  • as a safe investment, access into US Bond markets allowing for yields of currently around 5.5%

Weaknesses
  • UI can be a little all over the place and take some getting used to
Other minor points to note
  • languages: English/German/French/Italian/many others

This will get you up to 1000 USD in IBKR shares. For every 10000 USD that you deposit you get 100 USD in shares, which vests one year after you made the deposit.

UI options
  • Client portal - website
  • Trader workstation - downloadable sofware
  • IBKR mobile - app for smart phone
  • IBKR APIs

Example for Bond investment into Bills (no dividend payment, as zero coupon):
  • go to Research -> Bond Scanner
  • select US Treasuries, select Bills as Treasury Type
  • View Results

To fund the IBKR account, the best way depends on the currency:
  • IBKR provides IBANs for funding of European currencies (EUR / GBP / CHF / others), so those can be easily funded with a bank transfer from, e,g Yuh
    • In particular for a CHF, you can fund it at a Switzerland based bank account so this should be a free transfer
  • for non-European currencies (eg USD), an effective way may be a two-step approach:
    1. fund a Wise balance in that currency (Wise will provide a UK IBAN so international transfer is easy)
    2. that Wise balance can then be used to fund from IBKR directly
      (total cost of this approach should be around 32.91 USD between Yuh and Wise fees:
      1. 3.52 USD Wise fee
      2. 4 CHF (4.44 USD) Yuh international transfer fee
      3. 25 USD amount arrives less at Wise (presumably due to Yuh flagging a SHARE payment)
      4. 0.39 USD for funding the IBKR account from a Wise balance

Comments

  1. Experience CompanyOctober 8, 2024 at 2:03 PM

    Interactive Brokers (IBKR) stands out as a robust international brokerage with extensive market access and competitive cash interest rates. The ability to fund accounts from Switzerland using multiple currencies is a significant advantage, especially for those managing Pillar 3b accounts. With yields on US bonds around 5.5%, it's an attractive option for safe investments. However, the user interface can be overwhelming for new users. Overall, IBKR offers excellent features for both seasoned and novice investors, especially with its varied funding options and the potential for substantial referral bonuses.

    ReplyDelete

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