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AlgoLab by theAlgoLab.com is trade execution assistance software. theAlgoLab.com company, software, or it's principals do not provide trading advice or recommendations. If you require personalized professional trading / investing advice, please consult with a licensed broker/CTM. Actual past performance, or simulated past performance does not guarantee future results. Trading futures assumes a high level of risk. theALgoLab.com and it's principals are not registered as investment advisors. Consult with a CPA or financial advisor, or broker to ensure that your strategy utilized is suitable for your investment profile before trading in an actual funded live brokerage account.

 

Some trading performance results posted at this web site are from back-testing systems during the dates indicated, using specific settings, from a basket of different futures contracts. Some performance results shown here benefit from hind-sight. Some results shown result not from actual funded trading accounts, but from simulated accounts which have certain limitations. Actual results will differ given that simulated results could under, or over compensate the impact of certain market conditions. Actual draw downs could exceed back-testing draw downs when traded on actual trading accounts.  While back-tested results might show profitable returns, once commission, slippage, and fees are considered, actual returns will vary. 


Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website or on any reports. The past performance of any trading system or methodology is not necessarily indicative of future results. 

SETTING UP YOUR FUNDED INTERACTIVE BROKERS ACCOUNT

 INTERACTIVE BROKERS ONLINE ACCOUNT APPLICATION FORM IS INTUITIVE AND EASY TO FOLLOW. THERE ARE 7 IMPORTANT SETTINGS THAT WILL ENSURE THAT ALGOLAB IS FULLY COMPATIBLE WITH YOUR INTERACTIVE BROKERS ACCOUNT. AS YOU MAKE YOUR WAY THROUGH THE IB ACCOUNT APPLICATION PROCESS, PLEASE PAY ATTENTION TO THESE 7 SETTINGS OPTIONS:
 

  1. PRICING STRUCTURE= FIXED RATE

  2. BASE CURRENCY = UNITED STATES DOLLARS

  3. ACCOUNT TYPE = MARGIN

  4. INVESTMENT OBJECTIVES = SPECULATION & TRADING PROFITS

  5. INVESTMENT EXPERIENCE = "YES" FOR "FUTURES" (if that applies to you)

  6. TRADING COUNTRIES = UNITED STATES

  7. SECURITY = INSTALL & INITIALIZE "IBKR mobile" SMART PHONE APP,
    then follow these instructions to
    OPT OUT OF SECURITY FOR TRADING.


 

THE FOLLOWING DETAILED GUIDE BELOW IS AN OPTIONAL STEP BY STEP GUIDE TO THE IB ACCOUNT APPLICATION. IB OFTEN CHANGES THEIR USER INTERFACE, SO YOUR SCREENS MAY NOT LOOK EXACTLY THE SAME AS THOSE IN THE GUIDE BELOW.

note: RED highlighted steps below are important AlgoLab compatibility requirements.

 

INFORMATION REQUIRED FOR YOUR INTERACTIVE BROKERS APPLICATION

 

Preview and print this application instruction page below and be sure to have ALL required information available to complete ALL steps of the application in one session.

***If you have the following information at hand you will be able to in complete the application in about 30 minutes.

 

  1. PC Browser - Interactive Brokers recommends using the current version of either MICROSOFT INTERNET EXPLORER, FIREFOX or CHROME for Account Management access.

    1. USE FULL SCREEN MODE ON YOUR PC TO ENSURE YOU SEE ALL BUTTONS AT THE BOTTOM OF THE PAGE.
       

  2. Account holder information

    1. Your email address (unique, not used with any other IB application or account),

    2. IB account name (easy-to-remember name),

    3. An IB account password – minimum 3 numbers, 3 letters (lowercase), 9 characters maximum,
       

  3. Name, Residential address, Phone #, SIN/SSN (tax ID number).

    1. If your physical address is different than your mailing address then you will require proof of residential address - electronic copy (not a photocopy) of bank statement or utility statement whose name and physical address match account-holder name and address.

    2. Those with a P.O. Box mailing address on required documents may need additional verification of physical address. A utility statement with the P.O. Box address ALSO showing the actual physical address of the residence will suffice in most cases. You can also update your bank address to also show your physical address.
       

  4. Banking information

    1. Full account # for funds transfer including bank code (eg. 003), transit # (eg. 02694) and account # (eg. 0457454),

    2. .PDF file of recent bank statement which has been downloaded directly from your online bank account
       

  5. Personal financial information – net worth, value of liquid assets, etc.
     

  6. Employer information - name, address, phone number
     

  7. Apple or Android smartphone to download the IB Key Security Application

    1. Do this ahead of time. Go to the Apple Store or Android Play Store and download the app.

      ***PLEASE COMPLETE THE ENTIRE APPLICATION IN ONE SESSION INCLUDING FUNDING INSTRUCTIONS IF POSSIBLE

1. Open Account

  • Select "Open Account" menu item at the Interactive Brokers web site: https://www.interactivebrokers.com

    • Note: AlgoLab is compatible with a Individual account, a IRA account (US only), a joint account, a corporate account, or a trust account, but NOT compatible with a Canadian RSP/TFSA account.

  • Select button "START APPLICATION" or "OPEN ACCOUNT" (different versions of the IB web site)

  • Enter your country of residence, and SPECIFY BASE CURRENCY UNITED STATES DOLLAR (USD)

2. Personal Details

  • Specify an email address, an Interactive Brokers account username, Interactive Brokers account password and specify your country of residence.

    • Note: If you are opening an ADDITIONAL (2nd or 3rd, etc) Interactive Brokers account, please DO NOT OPEN A LINKED ACCOUNT. Open a NEW account by specifying a UNIQUE EMAIL ADDRESS.

  • Click the button "CONTINUE"

  • Check your email for a verification email that IB just sent to the email address that you provided. Click the "VERIFY ACCOUNT" button in the email, and log into your new Interactive Brokers account using your new IB account name and IB account password.

3. Personal Information Enter the remainder of the personal Information fields

4. Address Enter your address and mailing address if different from your home address

5. Contact Information Specify a MOBILE PHONE NUMBER (a mobile phone is required)

6. Tax Residency Specify the country where you pay taxes, and provide your SIN number (for Canada), SSN number (for US).

7. Employment Specify employment information and all other sources of income.

8. Account Information ​​Specify "MARGIN" account

9. Confirm Mobile Phone Number Push the button "Confirm mobile phone". IB will send your mobile phone a pin number which you must confirm

10. Regulatory Information The usual answer to both of these questions is "NO"

11. Assets & Income Specify your net worth and your annual net income.

12. Investment Objectives Select "SPECULATION" and "TRADING PROFITS" as your investment objectives

13. INVESTMENT EXPERIENCE Select the applicable answers. ( we answer "YES" for "FUTURES" with >10 Years Trading, 51-100 Trades Per Year, and "Good" knowledge level.)

14. TRADING COUNTRIES Select "UNITED STATES" as the trading country because AlgoLab trades US futures.

15. SELF CERTIFICATION OF TAX RESIDENCIES If you are NOT in the US, then you must fill in this section. Typical specifications are "NO", you do not have a US tax payer ID number, and YES, that you DO qualify for benefits of the US tax treaty.

16. DECLARATION OF TAX RESIDENCY If you are NOT in the US, specify your country of tax residency and your appropriate tax ID number (for Canadians use your SIN number).
 

17. SIGNATURE Enter your name as your signature, and select "YES" to answer the consent to collection question, then select ALL OF THE FOLLOWING "I AGREE" BUTTONS, and a final digital "SIGNATURE".

18. CASH DEPOSIT Enter the bank information for the bank account that you are transferring funds from: Account number, Transit Number, and Account Type.

19. FUND MY ACCOUNT Click on the GREEN BAR "FUND MY ACCOUNT" to start the funds transfer process. IB allows 3 forms of cash deposit into your account:

  • WIRE TRANSFER

  • ETF (Electronic Funds Transfer)

  • BILL PAYMENT

We recommend using WIRE TRANSFER because there is no limit on the amount you can deposit, and it usually takes from 1 to 2 days (faster than ETF), and there is no account identity requirement as with ETF.​ You can start the wire transfer now, or wait until your account has been approved. If you start the wire transfer now, then IB will approve your account faster. We recommend starting the wire transfer now.

Specify the currency that is in your bank account. If you are not in the US, then it is better (but not required) to convert your foreign currency to USD prior to the wire transfer. All AlgoLab IB accounts must be base currency USD, so if you deposit another currency in your IB account, your account value and other metrics on your AlgoLab dashboard page, and IB statements will be converted to USD, and reported in USD, and will reflect the current exchange rate.

Print out the "INSTRUCTIONS" and forward this information to your bank to facilitate the wire transfer:

20. APPLICATION STATUS: Submitted for Approval Your account application has been submitted for approval. Approval can take up to 2 days, or less if you start the funds wire transfer process prior to approval.

IMPORTANT! YOUR NEW IB ACCOUNT IS NOT YET COMPLETE. PRESS THE BUTTON "CONTINUE" AT THE BOTTOM RIGHT OF THE WINDOW:

21. MARKET DATA You do not require market data. Select "Non-Professional" as your status, then AGREE and then push the "CONTINUE" button.

22. SUBSCRIPTION SUMMARY Push the "CONTINUE" button

23. RISK DISCLOSURES & AGREEMENTS Select "AGREE" for all of the disclosures and agreements, provide your digital signature, then select the "CONTINUE" button bottom right.

24. SECURE LOGIN SYSTEM Follow the instructions provided to download and install either the Android or iPhone version of the IBKR MOBILE smart phone authentication app on your smart phone. The IBKR MOBILE app can be downloaded from the app store on your iPhone or Google Play Store on your Android device. After the app is installed, follow the instructions in this section of your IB account application to ACTIVATE your IBKR MOBILE app on your phone.

This is important, as the IB KEY smart phone application is used to authenticate your login to you account management at the IB web site.

IMPORTANT!! DO NOT USE IBKR MOBILE SMART PHONE APP TO LOG INTO YOUR ACCOUNT IN THE "TRADING" SECTION OF THE APP, AS THIS WILL DISCONNECT ALGOLAB.

25. DOCUMENTS REQUIRED Click on the bar "Upload Digital Copy" and upload a PDF file from your online bank account

IMPORTANT: IB will NOT accept a printed / scan of your bank statement, or a screen capture of your bank statement. YOU MUST GENERATE A .PDF FILE OF YOUR MOST RECENT BANK STATEMENT DIRECTLY FROM YOUR ONLINE BANK ACCOUNT, THEN UPLOAD THIS .PDF FILE TO IB.

26. BASE CURRENCY = USD If you are not based in the US, you MUST SET YOUR BASE CURRENCY TO USD. If you miss this setting during your account setup process, please log into your online IB account, and navigate to "Account Settings" and ensure that the "Base Currency" of your account is set to "USD".

27. SECURITY DEVICE PARTIAL OPT-OUT AFTER YOUR ACCOUNT has been approved, please LOG INTO YOUR ACCOUNT at the IB WEB SITE UNDER "ACCOUNT MANAGEMENT" https://gdcdyn.interactivebrokers.com/sso/Login and use your IBKR MOBILE app to authenticate your log in if you have completed setting that up. Follow these steps to TURN OFF security authentication for trading applications. OPTING OUT OF IB SECURITY DEVICE

28. TRADING PERMISSIONS CHECK The most common problem connecting AlgoLab to a new IB account is "Insufficient trading permissions". This means that you have not specified that you want your account to trade FUTURES product in "US" country. To check to make sure you have set this correctly, AFTER YOUR ACCOUNT has been approved, please:

1. LOG INTO YOUR ACCOUNT at the IB WEB SITE UNDER "ACCOUNT MANAGEMENT" https://gdcdyn.interactivebrokers.com/sso/Login and use your IBKR MOBILE app to authenticate your log in.

2. Click on "Settings / Account settings" in menu on left.

3. Check to make sure that "FUTURES" in "United States" is shown in your Trading Permissions

4. If Futures is not shown, then click on the settings gear in upper right corner of that "Trading Permissions" screen, and scroll down until you see "FUTURES", then select "United States", and "United States Floor Based Exchanges", and "United States (Crypto)".

5. Click "Continue" then save. Your changes will need to be approved by IB compliance and this usually takes 1 day.

YOU HAVE COMPLETED THE IB ACCOUNT APPLICATION!

When you receive notification that your account is funded (usually 2 to 3 days), submit the “Subscribe to AlgoLab form” and we will set up your new funded AlgoLab trading account. 

 

CONGRATULATIONS AND WELCOME TO THE ALGOLAB COMMUNITY!

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IRA Accounts at Interactive Brokers (US customers only)

In the United States, you are allowed to trade futures in your IRA account, however, futures trading in an IRA margin account is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed three times the overnight futures margin requirement imposed in a non-IRA margin account. More information about IB IRA accounts here.

If you are opening an IRA account, due to the higher margin requirements, you may require substantially more capital at the lowest risk setting in AlgoLab in order to prevent margin violations. Please notify us by email if this is an IRA account.

RSP and TFSA Accounts at Interactive Brokers (Canadian customers only)

Canadian customers are NOT ALLOWED to own futures or derivatives in a RSP or TFSA account, and would therefore not be compatible with AlgoLab. More information about Canadian TFSA and RSP IB accounts here.

Second Accounts

 

It is possible to open an additional account at Interactive Brokers, as many AlgoLab customers do. Please open a NEW account, by starting this account application process again, using a UNIQUE email address. AlgoLab is not compatible with LINKED accounts, so please DO NOT open a "LINKED" account.

CORPORATE INTERACTIVE BROKERS ACCOUNTS


Day trading through a corporation provides the following:

  • A fair, legitimate method of distributing the profits to the shareholders, via dividends per share if dividends are distributed equally per share.

  • A more favorable taxation (Canada, not sure about U.S.) which allows the account to grow faster, if the money earned isn’t taken out of the corporation.
     

Refer to this guide on setting up a corporate Interactive Brokers account for AlgoLab