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Anonymous

31 Jul 2021

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General Investing

Any cons choosing ibkr sg over ibkr llc?

I am leaning towards ibkr sg as I can transfer money using a DBS multiplier account which I plan to open in the futre but not sure if there are any downsides to a ibkr SG account.

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Nicholas Beh

31 Jul 2021

Student Ambassador 2020/21 at Seedly

To add on:

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IBKR SG has higher margin loan rates than IBKR LLC by about 100 basis points. If you are a heavy user of margin, this can be significant. Compared to local options though, they are still far ahead of the competition unless you are a HNWI where banks can offer lower rates.

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As a long term investor you might worry about US estate tax, and IBKR LLC by virtue of being located in the US means that its cash balances count towards estate tax. It remains to be seen that this is the case for IBKR SG, but given that it is a separate entity incorporated in Singapore, it is less likely that cash balances with IBKR SG count towards estate tax.

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Chris

31 Jul 2021

Owner and Writer at Tortoisemoney.com

The key downside I guess is lack of SIPC protection which IBKR LLC accounts are subject to.

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However, I personally feel that this isn't a big deal since IBKR is a pretty well established broker (around 50 years history) and the largest by daily trading volume. What I'm trying to say is that with IBKR, the risk of fraud is quite minimal so even if they do go under, your assets should be safely held separately from the firm's. For example, when Lehman went under, customer assets were safe and SIPC wasn't even used.

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