Dear Folio Client
Effective with the January 13, 2021 close of business, the self-directed retail accounts of Folio Investments, Inc not closed or transferred to another broker prior to this date have been transferred to IBKR. If your account was transferred and you have not yet completed the account opening steps with IBKR, you will need to do so to access your account.. The steps for completing your account are as follows:
You will receive an email confirming completion and approval of your account typically within 1-2 business days after completing these steps. Note that you will not be able to submit opening orders through your IBKR account until it’s been approved so it’s important to act prior to the transfer date.
We invite you to review our website to learn more about IBKR, find answers to the most frequently asked questions or contact us with any questions. If you’re not already familiar with IBKR, we have a 42-year history of building electronic access trading technology that provides our clients with the ability to trade worldwide at the lowest costs.
We are one of the largest US electronic brokers based on daily average revenue trades and have been recognized as:
Some of the features that will be available to you as an IBKR client include:
Please review the FAQs below for answers to the most frequently asked questions.
Direct Dial: +1-872-249-4691
We expect Folio to send the cost basis details for your transferred sometime during the week following that of the transfer date (i.e., after January 14, 2021). Note that his lag should have no impact upon tax reporting for trades that take place prior to the receipt of this data.
All eligible positions, including fractional shares, will transfer to your IBKR account; however, they will no longer be organized into the Folios groupings. This will have no impact on your ability to close or increase holdings in these positions.
IBKR offers trading in fractional shares, with certain policies that differ from Folio. For example, IBKR maintains positions in increments extending out to 4 decimal points whereas Folio uses 5. Assuming you hold a position with Folio of 100.12345 shares, at IBKR that position will convert to 100.1234 shares and a cash credit for the proceeds from the sale of the 0.00005 shares.
In addition, while IBKR offers fractional share trading in over 9,200 issues (see website for list), the population of eligible securities offered by IBKR and Folio may differ. For example, IBKR does not support fractional shares for Berkshire Hathaway Class A shares. If you hold a fractional position in a security not offered by IBKR as of the transfer date, it will be liquidated and you will receive a cash credit for the proceeds from the sale of the shares.
Clients who transfer their accounts elsewhere after the account is transferred to IBKR will be charged a $100 processing fee. This fee will be automatically deducted from the account balance when the account is transferred to the receiving broker.
Your 2020 tax forms will be produced by Folio but made available through your IBKR account, when available. Since the transfer is expected to take place in January 2021, possibly resulting in reportable activity from both brokers for the year, you may receive two tax forms for 2021, one produced by Folio for the period covering January 1, 2021 to the date of transfer, and one produced by IBKR for the period covering the date of transfer through December 31, 2021. Clients will be provided online access to both of these tax forms through their IBKR account.
We offer two pricing plans, IBKR Pro and IBKR Lite. IBKR Pro is the plan for sophisticated investors and active traders. IBKR Pro clients access the IB SmartRoutingSM system, which provides $0.47 per 100 shares price improvement vs. the industry. IBKR Lite provides retail clients with $0 commissions on US listed stock and ETF trades, no account minimums and no inactivity fees. View the following Short Video for an overview of these two plans. While the IBKR Pro plan includes a monthly inactivity fee of $10, which is reduced by any commissions generated during the month, we will be waiving this fee for transferring Folio clients for the 12-month period following the transfer.
We offer trading in a broad array of instruments, including stocks, ETFs, mutual funds, bonds, options, and currencies all from a single unified platform. Access to these products is provided via 150 markets in 33 countries. A listing is available on our website.
We offer access to a wide selection of exchanges across North America, Europe and Asia. A listing of these exchanges along with their operating hours is available on our website.
Our affiliate Interactive Advisors offers portfolio that are very similar. Interactive Advisors is an SEC-registered investment advisor that provides low-cost access to well-diversified portfolios using data from industry-leading providers and our own investment team as well as a curated selection of talented investment managers who have a mandate to pursue enhanced returns. IA has 70+ portfolios including several Socially Responsible Portfolios that allow you to invest in accordance with your values. Investopedia ranked Interactive Advisors top robo advisor in the sustainable investing and portfolio construction categories. Fees start at 0.08% per year and range between 0.08% and 1.5% per year and the minimum to invest starts at just $100. SEC registration does not imply a level of skill or training.
We offer 3 platforms for submitting orders:
Most clients find the Client Portal to be the optimal starting platform based upon ease of use and ample functionality or IBKR Mobile if the convenience of a Smartphone app is preferred. Clients are free to switch platforms at any login session and enjoy the same commissions and execution quality regardless of platform selected.
We have an Education section on our website that includes a number of short instructional videos. To learn about trading with the Client Portal, we recommend these two:
Navigating and Trading using IBKR’s Client Portal
How do I update my personal information?
Can I change my primary username?
How can I configure my account settings?
How do I manage my Stock Dividend Reinvestment Program (DRIP) election?
How do I add users to my individual account?
How do I modify user access rights?
How do I transfer funds to IBKR?
What types of checks may I use to fund my account?
When will the funds I deposited be credited to my account?
How do I transfer positions to IBKR?
How do I link my checking account to my IBKR account?
How do I connect my account for ACH via Instant Account Verification (IAV)?
How do I connect my account for ACH via Traditional Account Verification?
Can I deposit funds from more than one bank?
Can I transfer a portion of my account at another broker to Interactive Brokers?
How do I transfer funds or positions between Interactive Brokers accounts?
Can I transfer funds internally in between IBKR accounts of different holders?
Can a security be transferred into my account?
Do you accept physical stock certificates?
What is the maximum amount I can deposit via ACH?
How do I transfer funds out of IBKR?
Are there any limits to the amount I can withdraw?
When can I withdraw the funds I deposited?
Why have I not received my cash withdrawal?
Why am I unable to withdraw funds?
What determines how much cash is Available for Withdrawal in a Cash account?
What determines how much cash is Available for Withdrawal in a Margin account?
What is the Insured Bank Deposit Sweep Program?
Who is eligible to enroll in the Insured Bank Deposit Sweep Program?
How do I sign up for the Insured Bank Deposit Sweep Program?
How does the Insured Bank Deposit Sweep Program help maximize my FDIC insurance eligibility?
How is interest calculated on my cash balance deposited into the Insured Bank Deposit Sweep Program?
What is the minimum balance required to have cash swept into the Insured Bank Deposit Sweep Program?
What is the maximum balance that can be swept into the Insured Bank Deposit Sweep Program?
If I have funds invested in the Insured Bank Deposit Sweep Program and execute a trade that requires capital, are the funds redeemed automatically?
Will cash withdrawals under the Insured Bank Deposit Sweep Program be instant?
Where can I see information about deposits held and interest paid using the Insured Bank Deposit Sweep Program?
Can I change the order of the banks for the Insured Bank Deposit Sweep Program?
How do I restrict deposits with an Insured Bank Deposit Sweep Program participant?
How do I open a margin account?
How do I upgrade from a Cash type account to a Margin type account?
How do I request an extension for a margin call?
Is there a minimum deposit required to obtain a margin account?
What can I do to reduce my margin debit balance?
How do I downgrade from a Margin type account to a Cash type account?
How do I transfer an IRA account that is not at Folio to Interactive Brokers?
How do I move my current employer sponsored retirement plan to an Interactive Brokers IRA?
Am I eligible to make a contribution to my IRA?
How do I take an IRA distribution?
How can I open an IRA account?
How do I take an IRA distribution?
How do I change the year for an IRA contribution that has already been made?
How do I convert my Traditional IRA into a Roth IRA?
What is the purpose of Form 5498?
What is the maximum contribution I can make to my Roth IRA?
What is the maximum contribution I can make to my Traditional IRA?
Get Started with Client Portal (Video)
How do I activate a free trial research or news subscription?
How do I view messages from IBKR?
How can I configure Client Services message delivery and notification?
What is the minimum amount to keep my account open?
What account types are offered to applicants?
What are the password requirements?
What are the requirements in order to qualify for various trading permissions?
How do I access the Corporate Action Manager?
The voluntary corporate action tool is not accepting my election.
What should I do if I missed the voluntary corporate action deadline?
Is there a fee for corporate actions?
How do I modify a previously submitted election?
IBKR offers dividend reinvestment choices for both stocks (U.S. and Canadian) and mutual funds. Stock dividends are paid in cash by default and clients can elect to participate in our Dividend Reinvestment Program (DRIP) through the Client Portal. See the Knowledge Base for details. Accounts transferred from Folio will have Mutual Fund dividends paid in cash by default and may change the setting to elect dividend reinvestment within the Client Portal (see Settings/Account Settings/Dividend Election menu options).
What are the other IB Tax Reports besides the Consolidated 1099s?
What if my Forms 1099 are not posted in the Reports section of Client Portal?
What is the purpose of Form 5498?
Where can I get historical and current tax forms?
Do you offer TurboTax format tax forms?
Why did I receive an amended tax statement?
How are customers notified of changes to tax forms?
Why did the cost basis of my position change?
How long do I have to hold a stock to be considered Long Term?
Where can I set up a notification of a Short Term gain becoming Long Term?
What are the tax consequences of taking an IRA distribution?
Where can I find out more about your privacy policies and account protection?
How is my IB LLC account protected?
What is the Insured Bank Deposit Sweep Program?
Why did Client Portal log me out?
What is Two-Factor Authentication?
How do I request a Secure Login Device?
If I uncheck SSL on the login screen does it mean my password will be sent in clear text?
What should I do if I believe that my account has been hacked?