Is the money in my account protected?
The funds in your account are held under your name at Interactive Brokers, LLC to FINRA, Registered broker dealer, (www.finra.org
) and regulated by the Security Exchange Commission (SEC). The Securities Investor Protection Corporation (SIPC) insures your account at Interactive Brokers against potential fraud. For more information on SIPC insurance, please visit www.sipc.org
Can my account lose value?
All investments carry some type of risk. The securities you hold in your account are subject to market volatility and risk. If the markets go up, most probably your account value will go up as well. When markets are down, your account can lose money. While over short period of time fluctuations are part of the markets, historically over the long term your investments will likely increase.
Can I withdraw money from my account whenever I want?
Yes, you can withdraw your funds whenever you want. Typically, it takes 5 business days to have your funds available.
What is the Investment Philosophy?
Our Investment Philosophy is based on two financial principles, Modern Portfolio Theory and passive index investing.
Modern Portfolio Theory, developed by Harry Markowitz, is an investment strategy that seeks to maximize returns at the same time that seeks to minimize risk by diversifying the portfolio among uncorrelated asset classes.
This theory states that the investor should take in consideration the potential risk and return as a whole and not of each individual security in the portfolio.
Passive index investing is a strategy establishes that trying to pick individual securities or to try determine when it’s the right time to buy them in order to outperform the market it’s futile. Extensive research validates the notion that passive investing may outperform actively managed portfolios.
Our portfolios are personalized and designed to adjust according to your personal risk tolerance while staying globally diversified. We only use UCIT ETF’s. They provide great diversification, offer ample liquidity, and they are cost-effective. Additionally, they provide important tax benefits for those investors who do not reside in the U.S.
How can I fund my account?
You can fund your account with a wire transfer or with a check in dollars. Once your account has been opened, we will provide you with funding instructions.
Can I change my portfolio?
Yes. Once you opened your account you can change your portfolio from your dashboard.
How is my money is Invested?
When you open your account, we ask you few questions so we can determine your risk tolerance, investment objectives and time horizon. With this information we are able to create the optimal portfolio for you. Once you opened your account you can shift among the different portfolios we offer at any time.
What are the deposit and withdrawals fees?
Interactive Brokers doesn’t charge any fees for deposits made in the accounts. For withdrawals, the first one in the month is free and then there is fee of $10 per each withdrawal.
What are the fees?
The annual management fee is based on assets under management as follows:
For the first $100,000 = 1.75% per year
Then, from $100,001 to $500,000 = 1.50% per year
Then, from $500,001 to $1 million = 1.25% per year
And the, from $1million plus = 1% per year
How are management fees calculated?
The Advisory fee is automatically calculated and deducted monthly from the account held by the custodian.For cash accounts, the advisory fee is calculated based on the Net Liquidation Value (“NLV”) of the account applied daily on a 252 business days basis (business days may vary per year). The Net Liquidation Value of your account for any given day is equal to the ending equity value of the account on that day. For margin accounts the advisory fee is calculated based on the daily Market Value of the Securities’ Margin. The Securities’ Margin is borrowing money collateralized by the positions in your account. The value of the Securities’ Margin is determined by the Margin loan amount plus the Margin Deposit amount in the account on that day.
What is a UCIT ETF?
A UCIT ETF is a security that usually tracks a basket of stocks, bonds or assets like an index fund, but trades like a stock on a stock exchange. They closely track their benchmarks, such as Dow Jones Industrial Average or the S&P500. They provide great diversification, offer ample liquidity, and they are tax efficient for investors who do not reside in the U.S.
Can I close my account at any time?
Yes, you can close your account anytime and you will not be subject to any penalties.