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Step by step guide to opening sub-accounts with Interactive Brokers
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STRATxAI

February 2024 · 2 min read

How to create an IBKR sub account

Getting Started
Beginner
Intermediate

This article is relevant to all Established and Xplorer plan users who have augmented with Connect for broker integration.

In order to have more than one integrated STRATxAI portfolio you will need to open one or more corresponding accounts with your broker. Or in the case of Interactive Brokers, you can add sub accounts to your master account.

Opening a sub-account allows an STRATxAI user to trade more than one strategy or portfolio at a time. Simply set up your IBKR sub account and then allocate individual strategies to separate sub-accounts.

1. Preparing to open a sub account

Sub accounts take just a few minutes to open, but may take one or more days for IBKR verification.

Before you begin, we recommend that you get ready some documents that you will need to upload at the end to verify your identity for IBKR. Usually the following documents suffice; your passport/drivers licence/national ID card and a recent bank statement or other suitable proof of address.

Once you are ready to start:

  1. Login to your live account on Interactive Brokers through their web portal
  2. Click the user icon on the top right corner and then click “Settings”.
Go into your personal settings to start opening a sub-account.
2. Open an additional account

In Account Settings you will see Trading, underneath which you will find Open an Additional Account.

Navigate to the trading and additional account section.
3. Select account type

In the drop down, you will most likely be selecting Individual, but could choose Joint or if you are in the US you could be selecting Retirement.

Select which type of interactive brokers account you would like.
4. Creation complete

Click Finish Application and the sub account will be created but there are two last steps.

The application is process is complete, time for a short questionnaire from Interactive Brokers for regulatory purposes.
5. Regulatory

The Financial Information page covers in short some of the details that you included in your initial long questionnaire back when you first opened your main account.

So you can select from the drop down list what type of account this is. If your main account is a cash account, then this likely would also be cash.

For regulatory purposes you are asked about your investment objectives and can tick which ones apply to you.

There is the opportunity to apply for additional trading permissions here, but otherwise just scroll to the bottom to move on.

Financial Information for regulatory purposes
Short page on Financial Information.

Note: The section on additional permissions or add ons is there for you to review if you wish. This section will differ for users depending on the permissions and add ons already included on their main accoumnt.

You will be shown a summary of the trading experience, number of trades and frequency of trades as per your original main account opening under each of the permissions that you have already been approved for.

There may be a box that you can tick to show that you have an interest in trading something additional, for example Options.

There may be a box for optional add ons available from IBKR that might interest you.

6. Identity needed

On the next page, IBKR will want to verify it is you and ask you to upload an identity document and a proof of address such as a bank statement.

Upload your passport and proof of address as the final step
Verify your address and identity
7. Sub account ready for use

It could take a day or more for IBKR to complete verifications but once all is done, they will notify you that your new sub account is available. You can now go back in and open another sub accounts if you want to.

8. Move cash or positions between accounts

Once your sub account(s) are open, you can easily transfer funds and even positions between sub accounts and what is now known as the (original) master account. You want to ensure that your STRATxAI strategy is not held in the same account as any other positions and that you have adequate funds to maintain your rebalance.

Tip: Take a note of the number of each account before you start as they can be hard to identify further in the process.

1. From your IBKR menu bar click Transfer and Pay

Select Transfer & Pay from the menu bar

2. The process is the same whether you are moving positions or funds, so make your selection here.

Transfer Positions or Transfer Funds

3. This is an internal transfer between your IBKR accounts, so take that option.

Internal transfer between your IBKR accounts

4. And finally indicate the source account and destination account.

Select source account and destination account

The transfer takes place and you will get a confirmation on screen.

FAQ's

Can I have more than one STRATxAI Portfolio trading if I have just one master IBKR account?

No. You must open sub accounts for each additional STRATxAI Portfolio.

Can I hold any other cash or positions in an IBKR account alongside an STRATxAI portfolio?

No. STRATxAI portfolios must be isolated in either the master or a sub account. When it comes to rebalancing, the contents of the STRATxAI account will be bought or sold accordingly, which could include separate positions should they be left in there with it.

Will I have multiple log ins and passwords for IBKR sub accounts?

No. You can simply click between sub accounts on IBKR's site without needing to log in and out.

We mimic the same functionality on STRATxAI. You do not need to authenticate each sub account but simply choose the sub account that you want to create the portfolio with.

*Note this article was updated in 2022. In you come across any substantial differences when undertaking the process on the IBKR side, please let us know so we may updated this guide.

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