IBKR 101

So you want to achieve financial independence but are not sure where to invest your money? If so, you can try Interactive Brokers or IBKR. This brokerage platform is one best in the industry, offering a range of investment opportunities for beginners and advanced traders alike.

But before you start investing with Interactive Brokers Singapore, there are a few things you need to know. In this guide, we’ll let you in on some essential tips and tricks to make the most out of your investments with IBKR.

Here at OMY Singapore, you will discover:

What Is Interactive Brokers Singapore?

This American firm is one of the biggest in the world, and it’s now building its presence in Asia.

Interactive Brokers is listed on NASDAQ, which means you can trade your shares on the platform itself. This platform is also one of the best options if you want versatility because it lets you invest in futures, stocks, bonds, funds, stocks, and currencies in more than 150 markets, including Singapore. It’s also one of the cheapest trading accounts you can get today.

Here’s what you need to know about the different fees and products on the platform.

Trading products in Interactive Brokers Singapore
  • ETFs
  • Stocks
  • Bonds
  • Futures
  • Options
  • FX
  • Metals
  • Cryptocurrencies
  • Mutual funds
Minimum commission fee for Singapore stocks
  • 0.02% to 0.05% (S$0.9 – S$1.60 minimum) for those under Tiered pricing
  • 0.08% (S$2.50 minimum) for those under Fixed pricing
Minimum commission fee for US stocks
  • 0.0005% to 0.0035% per share ($0.35 minimum) for those under Tiered pricin
  • 0.005% per share ($1 minimum) for those under Fixed pricing
Stock Holding Type
  • Custodian
Trading platforms
  • Client Portal
  • IBKR Mobile
  • Trader Workstation
Payment method
  • Bank transfer or Securities transfer
Inactivity fee
  • S$0

In the table above, you’ll notice that IBKR has fixed and tiered commission fees. When you sign up for an account here, you’ll automatically be put on the fixed tier. However, you can always switch to tiered to make it more affordable for you.

Keep in mind that if you want to trade Singapore shares, Interactive Brokers Singapore charges a fixed 0.08% fee, with a minimum $2.50 commission. That means that if you’re trading a huge amount, switching to a tiered account will let you pay a cheaper commission between S$0.9 to S$1.60. That said, the tiered account is also recommended for those who are not trading by the millions, especially if you want to trade the US stock market.

The minimum Interactive Brokers Singapore commission is one of the lowest in the industry, especially considering bank brokers charge as much as S$25 for each trade you make. Even compared to Saxo markets, which is a favorite among many traders in Singapore, IBKR still stands out. Saxo markets charge a minimum of S$5 per trade on its Bronze plan.

If you are still a beginner in the world of trading and you only want to try trading a small volume of assets, it may be better to check out other brokerage platforms such as Tiger Brokers and Moomoo for SG stocks. For US stocks, only TD Ameritrade, Moomoo, and Webull are more affordable than IBKR Singapore.

Another plus side of this trading platform is its no inactivity fee, and low Interactive Brokers Singapore fees in general. So on days when you don’t feel like trading, you don’t need to force yourself to do it just to avoid being charged the inactivity fee.

How To Open An IB Brokerage Account

It’s so easy to open an account on Interactive Brokers SG. The entire process can be done entirely online, without the need to print documents. It can even be done in less than 10 minutes and with your MyInfo.

After you apply for an account, you will be notified in a few days about the status of your application, whether it’s approved or not.

Finally, you can start funding your account. For IBKR Singapore, there are two ways you can do this. The first is through bank transfer, which may take up to a few hours or four business days. The second way is to transfer securities you already have from another firm to your IBKR account. From here, you can make trades, enjoy low IBKR fees, and reach your investment goals.

More From OMY: A Beginner’s Guide To Dividend Investing In Singapore

How Can You Buy Stocks On IBKR?

With Interactive Brokers Singapore, you can buy a wide array of assets, even those that are listed on the SGX. Not only that, but this platform also offers interest payments on cash balances, stock lending, and margin trading, among other trading services.

When you invest on this platform, you can Buy and Sell the counters you want to trade. Simply search for it or make sure it’s on your watch list. You may also invest in fractional shares or other numbers of shares, as well as choose various order types for your trade. The most common ones for this include market order where you take the latest market price, and limit order where you only trade the stock if it hits your price.

What’s great about Interactive Brokers Singapore is it also provides comprehensive data about the assets beyond its price. This includes its volume, news about it, and other financial information.

However, you cannot see live market data, and the prices on it are simply delayed quotes. You can still get a more current price by selecting the Snapshot, which is $0.01 per quote request.

Why Choose Interactive Brokers Singapore?

Here are a few advantages of investing in Interactive Brokers Singapore.

Low fee

In the previous sections, we’ve already established that when it comes to fees and prices, Interactive Brokers Singapore stands out, especially for investors trading large volumes. The commission rates are also extremely transparent on the website.

It does not only stand out when it comes to US and Singapore-listed assets but also those from other regions. All information can be seen here. Expect no added spreads, surprise platform fees, account minimums, and inactivity fees.

The charges for margin financing are also great since it allows you to earn extra income on the shares you have by lending them to other investors who want to short the market. 

You may even lend your fully-paid shares if you want to earn more income through the Stock Yield Enhancement Programme, as well as earn up to 3.33% Interactive Brokers interest rate on idle cash. You can earn this on IBKR even without putting it in cash management accounts where you have to carry a little risk.

Global markets

Through IBKR Singapore, you can access options, futures, currencies, stocks, funds, and bonds in over 150 markets, across 26 different currencies and 33 countries.

If you prefer to invest in ready-made portfolios, you may also invest in themed portfolios. While IBKR is not unique in offering such huge access to different markets in one platform, it’s still a great advantage because it helps you review all your investments in a single platform. This saves you time and effort.

Because Interactive Brokers Singapore can accommodate 26 currencies, you can fund your account with different currencies without having to deal with hefty foreign exchange costs. If you fund your account in one currency and want to invest in another currency, that’s only when you need to incur added costs.

Great technology

Interactive brokers give you tailored technological solutions that are perfect for beginner investors, as well as seasoned traders, and even wealth managers. With IBKR Singapore, you can have access to free trading tools, news, reporting, research, and diverse types of algorithms and orders that you can take advantage of.

A Word From OMY

If you’re looking for a platform to help you invest, look no further. Interactive Brokers Singapore is a must-try for all types of traders and investors in Singapore. Now that you know how IBKR works, you can make a more informed choice on how to maximize this platform to achieve all your investment goals.

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