SIPP Product at Interactive Brokers

I don't think SIPP provision goes against the IB business model. They already offer IRA accounts in the US, which are basically the same thing. The question is more likely to be can they make it pay, and/or find a suitable trustee/administrator.

CFDs I believe do not fit into the IB model. Their whole thing is about getting access to exchanges, not OTC. That might not stop them though ... ;)
 
The US market is 6 times that of the UK hence why I personally think they may not do a SIPP wrapper.

JonnyT
 
Fair comment. What if all the charges can be put into the wrapper product though? Then it's essentially a no-risk deal from IB's perspective.

We'll just have to see. Personally I would lap it up if happens since my SIPP is currently stuck in a conventional brokerage account and I don't like CFDs. The IB account would be ideal.
 
Sipps

Thank you for your comments. We are currently reviewing supporting SIPP accounts. We welcome your comments.

Sincerely
Interactive Brokers


Mattybuoy said:
I don't think SIPP provision goes against the IB business model. They already offer IRA accounts in the US, which are basically the same thing. The question is more likely to be can they make it pay, and/or find a suitable trustee/administrator.

CFDs I believe do not fit into the IB model. Their whole thing is about getting access to exchanges, not OTC. That might not stop them though ... ;)
Click to expand...
 
OK here's another comment :)

I have been doing some serious reading of the IB website and forums trying to work out what it's all about. Mostly I like what I see, but some things are rather opaque.

Anyway ...

US IRA accounts at IB (or indeed at any brokerage) are apparently required by federal law to be "Cash accounts". This basically means no margin on stocks. I haven't investigated the futures and options rules closely but they are probably similarly restrictive.

Now as I understand it, in the UK SIPPs are allowed to borrow, and the scope of the borrowing is to be extended come "A Day" i.e. 6 April this year. However, it is not clear to me whether this only applies to property investments or also includes financial instruments.

To get to the point: If a hypothetical IB SIPP account were to be a "Cash account" only then there would seem to be little to differentiate it from the range of existing SIPP accounts.

---
Just musing ...
 
To get to the point: If a hypothetical IB SIPP account were to be a "Cash account" only then there would seem to be little to differentiate it from the range of existing SIPP accounts.
Click to expand...
How about:-

1. The outrageous commissions charged on other SIPP accounts.
2. The outrageous charges on other SIPP accounts.
3. The restricted range of markets available on other SIPP accounts.
4. The restricted trading times available on other SIPP accounts.
5. etc, etc, etc.

If IB get it right they will attract £m(b)illions. They will certainly get my few £1,000s.
 
I currently have a SIPPDeal account. There are no admin charges and the dealing charges are 0.75% for stocks with a GBP 15.00 minimum. Not suitable for trading but it's fine for investing, which is all you can sensibly do with the allowable investments anyway.

As to the point about restricted range of markets. The IB multi-currency facility is implemented using margin loans. No margin = no multi-currency = no foreign markets.

I'm not saying an IB SIPP wouldn't have some advantages, cheap commisions being the main one, but without margin they would be limited.
 
Mattybuoy, You may find better value using one of the brokers via the Sippdealxtra product (and better execution too). I think you get charged an admin fee but 0.75% dealing charge these days really isn't on.
 
Yes there are definitely better offers around. However, I am going to wait until after A Day to move at which point there will probably be some new offerings and substantial changes to those of existing providers.

--
If I were to change now it would be toss-up between Idealing and Squaregain. Idealing has direct access to LSE but their non-SIPPDeal wrappers have higher charges. Whereas Squaregain does not have direct access but does offer more coverage of foreign markets, and the cheap SIPPdealextra wrapper is available.

Etrade may be another possibility but the information about it is thin.
 
Last edited:
Reply to your question

Currently Interactive Brokers does not support a true SIPP accounts. The aforementioned is still under review as to whether we will be supporting them in the near future. Until we do support SIPP accounts we cannot comment as what are the differences between our SIPP account and others.



Mattybuoy said:
OK here's another comment :)

I have been doing some serious reading of the IB website and forums trying to work out what it's all about. Mostly I like what I see, but some things are rather opaque.

Anyway ...

US IRA accounts at IB (or indeed at any brokerage) are apparently required by federal law to be "Cash accounts". This basically means no margin on stocks. I haven't investigated the futures and options rules closely but they are probably similarly restrictive.

Now as I understand it, in the UK SIPPs are allowed to borrow, and the scope of the borrowing is to be extended come "A Day" i.e. 6 April this year. However, it is not clear to me whether this only applies to property investments or also includes financial instruments.

To get to the point: If a hypothetical IB SIPP account were to be a "Cash account" only then there would seem to be little to differentiate it from the range of existing SIPP accounts.

---
Just musing ...
Click to expand...
 
just got agreemnt from my sipp administrator that i can open an account at ib.i can trade uk stocks,most futures and stock options
 
Wow! Good news.

Would you mind letting us know who the trustee and administrator are?

Also, are they are any restrictions on investments and/or margin?

Thanks.
 
yes.ipm sipp administration.ware in herts.tel 08451303443.speak to james.
however,gerald perez at ib has a list of adminisrators that he deals with.ipm are not cheap,but have very few restrictions on the markets i can trade
 
Thanks.

I would be interested to know whether you are allowed margin on stocks, once you get going.
 
Mattybuoy said:
Thanks.

I would be interested to know whether you are allowed margin on stocks, once you get going.
Click to expand...
my sipp administrator has been in contact with gerald perez of interactive.so far,there is no problem.i am thinking,that to trade on margin,you will have to comply with the exchange recquirements.ie u.s pattern day traders ruling etc.
 
OK, thanks.

I imagine that margin on futures and options will certainly be allowed, since this does not constitute a loan, but rather a "deposit". However, since margin on stocks definitely does constitute a loan, I am wondering how that ties in with the SIPP borrowing rules. I have been totally unable to gain any sort of clarity on these except with respect to property investment, which is not relevant here.
 
from what i understand is that the sipp monies are put into the ib universal account.this allows you to trade any xchange that ib caters for.the only thing being you comply with the margin recquirements for that exchange.ie us.pattern day traders rulings.futures,initial margin recquirements etc etc.the one thing you are paying for is the sipp administrators fees.if there are enough t2w members then,i am hoping that ipm might give a good discount
 
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