Interactive Brokers

[bellenuit]

Thanks very much rnr, fraa.

Would anyone know what setting up a business involves? To date I have just traded under my own name. I'm assuming this could be a lot more complex than I'm imagining. Are there different tax rules, for example?

I don't know what type of trading/investing you plan, but some notable tax difference for companies are:

- companies cannot claim the 50% CGT discount for investments held for one year or more.
- although the 45 day rule applies for franking credits on dividends received by companies, there is no annual limit below which the rule doesn't apply.
- tax rates are entirely different (a flat 30%, or for those under $1m revenue, i think, from this year a flat 28%).
- no medicare levy or medicare levy surcharge.

 

[Gringotts Bank]

I don't know what type of trading/investing you plan, but some notable tax difference for companies are:

- companies cannot claim the 50% CGT discount for investments held for one year or more.
- although the 45 day rule applies for franking credits on dividends received by companies, there is no annual limit below which the rule doesn't apply.
- tax rates are entirely different (a flat 30%, or for those under $1m revenue, i think, from this year a flat 28%).
- no medicare levy or medicare levy surcharge.

sounds good, thanks bellenuit.

 

[Gringotts Bank]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

 

[minwa]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

:aus: Great news, where'd you hear this ? Can't wait to get back into IB for FX..

 

[cutz]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

That's good news, hopefully they will sort out the Margin Lending issue.

 

[i4ever]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

Is this a fact, or wishful thinking?

 

[-Bevo-]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

I too would like to know more

 

[Gringotts Bank]

:aus: Great news, where'd you hear this ? Can't wait to get back into IB for FX..

Part of an email response from IB.

 

[-Bevo-]

That is just the same old story they been telling for years.
my guess is nothing will ever change as they don't want to pay all
the different fee's ASIC attach for different licence's (margin, Forex market maker etc).
I heard from someone who rang ASIC after Forex got pulled that ASIC said they were not talking
with IB in regard to a FX licence and they didn't expect they ever would even though IB were
saying different.
The only way I know around this is to start a LLC in Delaware.

 

[Gringotts Bank]

That is just the same old story they been telling for years.
my guess is nothing will ever change as they don't want to pay all
the different fee's ASIC attach for different licence's (margin, Forex market maker etc).
I heard from someone who rang ASIC after Forex got pulled that ASIC said they were not talking
with IB in regard to a FX licence and they didn't expect they ever would even though IB were
saying different.
The only way I know around this is to start a LLC in Delaware.

Well I believe them.

LLC in Australia will do. Delaware not necessary.

 

[-Bevo-]

Well I believe them.

LLC in Australia will do. Delaware not necessary.

I never investigated company setups LLC Australia never heard of such a thing ??

As I understand and don't quote me Delaware setups don't require US bank account,
money can transfer direct to IB from here still pay tax in US.

 

[Gringotts Bank]

I never investigated company setups LLC Australia never heard of such a thing ??

As I understand and don't quote me Delaware setups don't require US bank account,
money can transfer direct to IB from here still pay tax in US.

Limited liability company

Setting up a new company in Australia

This is the most common Australia business entity used for business registration in Australia. It is also known as a limited liability proprietary company (LLC). As always, this business entity is a separate legal entity or ‘person’. In particular, this Australia business entity is separate from its owners, shareholders and the persons who run it, the directors.

http://www.healyconsultants.com/australia-company-registration/setup-llc/

 

[-Bevo-]

You would still be under ASIC being Australian then?

If that's the case still no Forex you just get margin.

 

[Gringotts Bank]

You would still be under ASIC being Australian then?

If that's the case still no Forex you just get margin.

Probably.

 

[-Bevo-]

Well hopefully something will happen oneday and they fix margin and forex for retail
but I have come to the conclusion that its probably not going to be anytime soon if ever.

Has anyone else heard any news?

 

[hawamahal]

Has anyone converted currency lately i.e. after the FOREX trading finished. How do I convert from AUD to USD. I bought some US shares couple of weeks back and the USD balance of my account became -ve and AUD balance of my account reduced.

 

[-Bevo-]

IB will be setting up a local entity some time soon hopefully (not just an office). And re-negotioating with ASIC. Will re-apply then. Easier.

You may be right, Radge posted on his website some changes are coming he didn't say what,
Margin and Forex might come back? Lets hope so

 

[freebird54]

Has anyone else got a BBY controlled a/c with IB and found IB not to want to know - cant touch my cash or stock [Over $50,000] and they Dont reply to emails any more
Anyone else getting concerned?

 

[CanOz]

Has anyone else got a BBY controlled a/c with IB and found IB not to want to know - cant touch my cash or stock [Over $50,000] and they Dont reply to emails any more
Anyone else getting concerned?

What does BBY mean? I've never had any issues with IB, period. My only complaint is lack of margin. Why can't you access your funds? Just sign in and do whatever you want???

 

[skc]

What does BBY mean? I've never had any issues with IB, period. My only complaint is lack of margin. Why can't you access your funds? Just sign in and do whatever you want???

BBY the collapsed broker.