I probably did (for a company) but can't remember what I ticked. That form is to be sent to to the IB office with some certified documents.
Quickest and easiest is to get onto the Chat (link inside the online application) and ask them. I think they are there 24hrs.
IB's financial services business
IB has been aware, since October 2013, that ASIC believes its financial services business in Australia involves making a market in foreign exchange (FX) products. In December 2013 ASIC extended a no-action position to IB regarding its FX business on the basis IB would obtain an Australian financial services licence with a market making authorisation for its FX business for an Australian subsidiary.
ASIC withdrew its no-action position in June 2015. This withdrawal followed a lengthy process of enquiry on ASIC’s part, attempting to clarify the FX services and products being provided by IB in Australia under the no-action position. ASIC was not satisfied that the no-action position ought to continue in light of the information provided to ASIC about IB's FX business in Australia.
ASIC notes that it has not to date been in a position to grant IB's Australian subsidiary an appropriately authorised licence.
ASIC has requested IB to cease providing all over-the-counter FX services in Australia, and has requested the provision of further information to enable ASIC to decide on an acceptable orderly exit mechanism from that part of its business in Australia.
I came across ASIC's updated media release RE: IB and FX
That doesn't bode well. Am I right to assume that no matter which type of account I have - individual, trust or small business - I will no longer be offered FX as an Australian applicant?
Time to look for another broker or change residential address?
Hi Guys, I have never posted on the forum but am an IB user, turning over $50m a month in FX and with a generous portfolio of overseas shares with them and to be honest I am a bit lostand stuck , and kinda sad as well :1zhelp: :1zhelp:
I thought best to let you know that I actually called ASIC and also IB and what they said...
IB said they had provided all the information they could and are working to resolve the situation as fast as possible. They couldnt give me a time frame, however you can do FX conversions with them on an off market basis (that is, you can only put in limit orders and you cannot see any market data, so it is very risky, and very slow).
ASIC were very forthcoming. IB have not applied for an AFSL, and never have. They doubt that they will, considering that they didn't after they were warned in 2013 and fined. They said that IB are not in any discussions with ASIC, that IB had just used the grace period without progressing with an application. They said that when switching brokers always ask if they hold the appropriate licenses to operate in Australia
My question is, how do we get around this? IB is worth US$4B, and I know what I am doing when I am trading. Is there a way to get around this? Who would be the next best broker?
The optimal solution to this problem if people are making serious money is to consider moving to New Zealand and trading there. New Zealand has marvelous tax incentives for new migrants. Essentially new residents/migrants get a 4 year tax holiday on any offshore income that they derive. After arriving in NZ , just update the address details in your IB account. Alternatively consider opening up a New Zealand company with IB. If this alternative is chosen, it would be prudent to consult with an accounting firm that has expertise in international tax matters.
Yes I've been toying with this but I would imagine they would want an NZ residential/company address and some NZ documentation - of which I have neither. Any thoughts about this?
As for NZ companies - it costs $150NZ to register and the company tax rate is at 28%, although if there are 5 or fewer shareholders, the company can be treated as a sole trader for tax purposes.
http://www.business.govt.nz/tax-and-reporting/business-tax-levies
http://www.business.govt.nz/startin...tructures/focus-on-companies#tax-requirements
IB said they had provided all the information they could and are working to resolve the situation as fast as possible. They couldnt give me a time frame, however you can do FX conversions with them on an off market basis (that is, you can only put in limit orders and you cannot see any market data, so it is very risky, and very slow).
ASIC were very forthcoming. IB have not applied for an AFSL, and never have. They doubt that they will, considering that they didn't after they were warned in 2013 and fined. They said that IB are not in any discussions with ASIC, that IB had just used the grace period without progressing with an application. They said that when switching brokers always ask if they hold the appropriate licenses to operate in Australia
Wow, if what ASIC says is true, what exactly did IB mean by "We intend to seek clarification from ASIC regarding our Australian clients' existing forex positions ..." in their initial email? Were they being deliberately misleading? One has to wonder ...
Yes most likely being misleading, normal business practice though. Much like a customer complaining to management about a meal, their response will be "sorry, we will look into it" and most likely doing nothing about it.
Australia is too small of a market for them to be concerned with. Especially with ASIC. FX will just end up like margining, indefinitely broken for retail Aussies.
Shame they're the only great broker for most here, but what if still offers still makes it better than other alternatives for most purposes.
ASIC were very forthcoming. IB have not applied for an AFSL, and never have. They doubt that they will, considering that they didn't after they were warned in 2013 and fined.
I am looking at making a family trust, in order to use margin trading with IB. Still doing initial research.
start a pty ltd they can trade on margin
Agree, this is the advice I was given at Radges conference in Noosa as well.
Thank you guys. I also just received this from IB confirming this also -
1. Could I open a Reg-T account with an Australian trust structure? Would it need to have a corporate trustee?
Answer: You can, as long as the trust is not a self managed super fund. You can apply for a margin account for your trust which has an corporate trustee Please be reminded that with recent implementation, we do not offer currency trading for all accounts with country of legal residence in Australia.
I need to do a little more research with regards to the currency restrictions. i.e. I only wish to trade in US equities, so am I unable to convert AUD to USD?
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