Interactive Brokers (IBKR) Universal Accounts typically consist of two main segments: the Securities segment and the Commodities segment. Regulations require securities and commodities activities to be conducted in separate accounts. Universal Account refers to the consolidation of these accounts for display purposes only, enabling clients the ability to use a single platform to conduct trading activity and position information for all products and services offered.
Understanding the differences between these segments is crucial for managing your account effectively.
Regulatory Oversight
- Securities segment: Regulated by the U.S. Securities and Exchange Commission (SEC)
- Commodities segment: Regulated by the Commodity Futures Trading Commission (CFTC)
Products Traded
- Securities segment: Stocks, bonds, ETFs, options, mutual funds, and other securities
- Commodities segment: Futures and options on futures
Interest on Cash Balances
- Securities segment: Interest is earned on long-settled cash balances above $10,000 USD
- Commodities segment: No interest is paid on cash balances
Cash Allocation
- All customer deposits are initially received into the Securities segment
- Funds are automatically transferred between segments to satisfy margin requirements
- The Excess Funds Sweep feature can be used to optimize interest earnings by moving excess funds to the Securities segment
- A small buffer of excess margin funds may be kept in each segment to prevent excessive transfers due to fluctuations in margined positions
Account Availability
- Not all accounts have a Commodities segment; this depends on the account type and approved trading permissions
- If you do not have futures trading permissions, all your cash is typically held in the Securities segment
Additional Segments
- Some accounts may also include a Cryptocurrency segment for cryptocurrency trading, depending on permissions and regulations
Checking Your Balance
- You can review your account's cash balance allocation by examining your activity statement
Please Note
- The availability of these segments and their features may vary depending on your specific account type, trading permissions, and the regulations in your country of residence. Always refer to the most current information provided by IBKR for your particular account setup.
- As part of the IBKR Universal Account service, you have authorized us to automatically transfer funds as necessary between your securities account and your futures account in order to satisfy margin requirements in either account.
Additional Information