IBKR Lite is Now Obtainable to Interactive Brokers Singapore Traders. Ought to You Swap and How?

Many readers right here would have heard of Interactive Brokers.

They’re my go to dealer. It’s the place I maintain my S$1.5 million Daedalus Earnings portfolio as my custodian. I maintain the portfolio below an Interactive Brokers LLC, which is the US a part of Interactive Brokers. Except for that Crystalys, my different portfolio is in Interactive Brokers Singapore.

In case you are on the lookout for a trusted dealer, with aggressive low commissions, very very low cost foreign money conversion at spot, entry to probably the most variety of overseas markets, have operated for plenty of years, thrived throughout the Nice Monetary Disaster as a substitute of suffered, that concentrate on their expertise pipping to maintain issues environment friendly, you may wish to give Interactive Brokers a attempt immediately (on the hyperlink above or right here)

A few of you probably did the analysis on Interactive Brokers and know that there’s a commission-free tier name IBKR Lite. You ask if Lite is on the market for Singaporean traders or the account below Interactive Brokers Singapore.

Lite was just for US folks for a protracted whereas, which suggests it was not out there for Singapore merchants.

However now… Interactive Brokers have made IBKR Lite out there for the accounts below Interactive Brokers Singapore!

In the event you go to the account settings, you’d see the next:

Meaning if you’re on IBKR Professional, you possibly can swap to IBKR Lite.

It seemed very completely different a day in the past, when the IBKR Lite reveals a coming quickly. So I suppose it’s stay!

Let me speak extra about it.

Not Obtainable if Your Account is an Interactive Brokers LLC Account.

I went in to my Interactive Brokers LLC account, and notice that IBKR Lite shouldn’t be out there to me.

So these of you who’re nonetheless on LLC account ought to take notice.

I don’t suppose this can be a main downer as a result of there are execs and cons of IBKR Lite.

A Distinction if You’re A Extra US-Targeted Investor.

I used to be questioning how having free fee will have an effect on me.

IBKR got here up with the next clear comparability:

Listed below are some foot notes:

1. IBKR Lite is supposed for retail traders. IBKR reserves the proper to reject any IBKR Lite order or collection of orders if IBKR determines the order(s) seem to indicate non-retail buying and selling conduct. On the time an order is rejected, the shopper can be mechanically introduced the choice to resubmit the rejected order on a Fastened fee foundation. For extra data, see IBKR Lite Disclaimers
2. Accounts with a NAV of lower than USD 100,000 (or equal) can be paid at a price proportional to accounts with a NAV of USD 100,000 (or equal) or extra. The proportion is set by the ratio of the account’s NAV to USD 100,000 (or equal). This doesn’t apply to currencies with destructive rates of interest, the place the destructive price utilized would be the similar no matter account dimension. Please notice that the curiosity paid for IBKR Lite is decrease than IBKR Professional. See our Curiosity Charges for particulars.
3. See our Margin Charges for particulars.
4. IBKR Lite is on the market to Singapore retail traders who maintain particular person, joint, or belief accounts. These accounts could be money or margin.
   1. Standalone belief accounts with authorized entity trustees should not eligible for IBKR Lite
5. Common buying and selling hours for IBKR Lite and IBKR Professional are 09:30 ET – 16:00 ET.
6. On the finish of every month, IBKR will evaluation your complete month-to-month buying and selling quantity of US listed inventory and ETF orders. If the mixed quantity of In a single day Buying and selling Hours (20:00 – 04:00 New York Metropolis time) trades or sub-USD 1.00 NMS inventory trades exceeds 10% of an account’s month-to-month US inventory buying and selling quantity, a fee of the lesser of USD 0.005 per share or 1% of commerce worth can be charged.

You’ll be able to take a look at the full web page right here.

You’re going to get commission-free buying and selling for less than US-Change listed shares and ETFs.

However there’s a complete group of disadvantages.

In case you are like me with most of my cash in UCITS Change Traded Funds (as could be seen on Daedalus) then this have an effect on me much less. In truth, you might be restricted to Fastened Pricing as a substitute of getting Tiered or Fastened Pricing on IBKR Professional for different shares (learn most of my ETFs on European exchanges, together with Singapore), choices and futures.

For IBKR Professional customers, the distinction between Tiered and Fastened pricing primarily comes right down to how commissions are charged and whether or not trade/clearing/rebate prices are handed via to you. I’m presently on IBKR Professional Tiered, and you’ll change from Fastened (which is the default) to Tiered with the identical directions as find out how to swap to IBKR Lite beneath.

I’ll present extra information of Tiered vs Fastened later, in order to not take this too far.

Except for the fee limitation for non-US securities, different limitations is

1. decrease rate of interest in your money,
2. larger value in your margin,
3. larger AutoFx Conversion price (0.09% vs 0.03%). AutoFx occurs if you purchase or promote a safety in a overseas foreign money (e.g., shopping for a USD-denominated ETF when your base foreign money is SGD), IBKR will Robotically convert the wanted quantity out of your base foreign money into the commerce foreign money. Do that on the spot FX price plus IBKR’s small FX fee. This ensures the commerce settles with out leaving a destructive steadiness within the overseas foreign money, and
4. not have entry to API

That is how IB select to distinguish their companies.

Would I Swap over to IBKR Lite?

In the event you can inform, this impacts an investor like me much less. I’m undoubtedly not sad that I don’t have this on IBKR LLC as a result of that’s the place Daedalus Earnings Portfolio is personalized.

Even for Crystalys (my different portfolio that’s on IBKR Singapore), this matter much less as a result of the US fee is already so low cost. I’m very happy even on IBKR Professional, particularly coming from a conventional dealer.

If you want to attempt, listed below are the directions.

You’ll be able to Swap Between IBKR Professional and IBKR Lite 3 Instances inside a 90-day Interval.

In the event you didn’t see the blue a part of the display seize that is what it says:

Please Observe:

• Service plan adjustments apply to all accounts related to the proprietor of this account.
• You could request your account swap between the IBKR Lite and IBKR Professional pricing plan at any time.
• You’ll be able to initially request a swap in pricing plan as much as 3 times over a 90 day interval.
• When you exceed three requests in a 90 day interval, every subsequent request is topic to a 90 day holding interval earlier than it’s processed.
• Requests are processed on the Friday following the request or Friday following the tip of 90 day holding interval.

The primary assertion means all related to the account is affected. Presently, I’ve two accounts below IBKR one with IBKR LLC and one with IBKR Singapore. Solely the IBKR Singapore one is affected however I believe when you’ve got created sub-accounts below IBKR Singapore, this account swap is affected.

The change request shouldn’t be speedy and course of solely on the Friday or when you’ve got executed it 3 instances inside the 90-days, the Friday of the brand new 90-day window.

Interactive Brokers will let you attempt to see which fits you.

How you can Swap Your IBKR Professional Tier or Fastened Pricing to IBKR Lite

To vary your IBKR Plan from Professional Tier or Fastened to IBKR Lite you are able to do the next.

Since most of you might be prone to be on the cellular I’m going to provide mobile-based directions. You need to be each on Interactive Brokers Cellular or Interactive Brokers World Dealer.

In case you are logged in on each platform, then lets began.

In the event you click on on :

1. The three slashes on the highest left nook of the Cellular app
2. The human silhouette on the highest left nook of the World Dealer app

It’s going to convey you to the extra admin panel. You will note both of the next:

Click on on the Settings on whichever platform you might be in.

You will note the next panel in each:

Click on on Account Settings.

In case you are on Interactive Brokers Cellular, you will note one other sub-panel.

In that panel, click on All Account Settings. (You gained’t see this in World Dealer)

In All Account Settings:

You must see the next choices:

You’ll be able to choose IBKR Lite.

The request can be put via, on the subsequent Friday, should you nonetheless haven’t exceed the 90-day window.

Bonus: IBKR Professional Fastened Versus Tiered Pricing

Now, some won’t know that on IBKR Professional, there are two completely different pricing schemes. You’ll be able to swap between the 2 completely different schemes.

The distinction between Tiered and Fastened pricing primarily comes right down to how commissions are charged and whether or not trade/clearing/rebate prices are handed via to you.

1. IBKR Fastened Pricing

• Easy “all-in” price: IBKR costs you a single flat fee per share (for shares) or per contract (for choices), whatever the trade/venue used.
• Change & clearing charges included: The flat price already covers IBKR’s fee plus most trade and clearing charges.
• No trade rebates: In case your order gives liquidity and the trade would usually pay a rebate, IBKR retains it — you don’t see it.
• Good for: Individuals who need predictable prices and don’t wish to take into consideration exchange-specific payment constructions.

2. IBKR Tiered Pricing

• Go-through of precise trade/clearing charges/rebates: You pay IBKR’s low base fee plus any precise trade or clearing prices, and also you obtain any liquidity rebates.
• Decrease base price: IBKR’s portion is decrease than the mounted price (e.g., $0.0035/share in US), however complete value is determined by the place and the way your order executes.
• Might be cheaper or costlier:
  • In the event you commerce in ways in which earn trade rebates (posting restrict orders), you may get monetary savings.
  • In the event you take away liquidity (market orders), you may pay extra on account of taker charges.
• Good for: Energetic merchants, those that use restrict orders successfully, or those that need transparency in payment breakdown.

This may be summarized within the desk beneath:

Now… the distinction is determined by which trade you commerce on, and the commerce worth of your commerce.

Now since most of my readers are doubtless on UCITS Change Traded funds, which are traded on the London Inventory Change (LSE), in USD, here’s a comparability towards numerous commerce worth:

IBKR Professional charges for LSE USD:

The clearing charges are right here.

We’ll assume:

Tiered:

• Fee: 0.05% of commerce worth (since all examples are effectively below the primary tier threshold of £50 million).
• Min: USD 1.70 per order.
• Max: USD 39 per order.
• Plus ~USD 0.21 exterior charges per order.

Fastened:

• Fee: 0.05% of commerce worth.
• Min: USD 4 per order. (Up to date for accuracy)
• Consists of exterior charges (no further).

It really works out to be the next:

• Round $7,500, Fastened turns into barely cheaper than Tiered.

This varies from trade to trade.

So it is determined by how is your execution like.

The Poor Swiss has a great information article displaying you this “it varies from trade to trade”: Must you use IB Fastened or Tiered pricing in 2025?

If you wish to commerce these shares I discussed, you possibly can open an account with Interactive Brokers. Interactive Brokers is the main low-cost and environment friendly dealer I take advantage of and belief to speculate & commerce my holdings in Singapore, the USA, London Inventory Change and Hong Kong Inventory Change. They will let you commerce shares, ETFs, choices, futures, foreign exchange, bonds and funds worldwide from a single built-in account.

You’ll be able to learn extra about my ideas about Interactive Brokers in this Interactive Brokers Deep Dive Sequence, beginning with find out how to create & fund your Interactive Brokers account simply.

Kyith is the Proprietor and Sole Author behind Funding Moats. Readers tune in to Funding Moats to be taught and construct stronger, firmer wealth foundations, find out how to have a Passive funding technique, know extra about investing in REITs and the nuts and bolts of Energetic Investing.

Readers additionally comply with Kyith to learn to plan effectively for Monetary Safety and Monetary Independence.

Kyith labored as an IT operations engineer from 2004 to 2019. Presently, he works as a Senior Options Specialist in Insurance coverage Begin-up Havend. All opinions on Funding Moats are his personal and doesn’t signify the views of Providend.

You’ll be able to view Kyith’s present portfolio right here, which makes use of his Free Google Inventory Portfolio Tracker.

His funding dealer of selection is Interactive Brokers, which permits him to put money into securities from completely different exchanges all around the world, at very low fee charges, with out custodian charges, close to spot foreign money charges.

You’ll be able to learn extra about Kyith right here.