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:
PRICING STRUCTURE= FIXED RATE
BASE CURRENCY = UNITED STATES DOLLARS
ACCOUNT TYPE = MARGIN
INVESTMENT OBJECTIVES = SPECULATION & TRADING PROFITS
INVESTMENT EXPERIENCE = "YES" FOR "FUTURES" (if that applies to you)
TRADING COUNTRIES = UNITED STATES
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".
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
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.
AFTER 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!
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.
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.