Tuesday, 12 November 2013

Interactive Brokers - BPAY makes funding even easier

As regular readers may know, I use interactive brokers for most of my share trades.  It is cheap, simple and easy to use.  It has some big draw backs including not being able to invest in dividend reinvestment plans which they really should fix, however they also have some quirky benefits like being able to get over-allocations for rights plans due to the way in which they hold your shares.

It was always quite easy to fund your account with Interactive Brokers

I have covered before how easy it was to do a wire transfer into Interactive Brokers and how my account funded the very next day.  One of the slightly more frustrating things about wire transfers is that often financial institutions would limit how much you could transfer to another account per day.  These limits were quite large - for my financial institution there was a maximum of $20,000 per day - however there were situations where I wanted to do more than this.

The first time I participated in a rights issue I wanted to transfer about $50,000 into my Interactive Brokers account to apply for an over-allocation.  I had to do this over 3 days which didn't limit my ability to participate, but if I was not on the ball about this issue then it would have become a problem.  If I wanted to participate fully in the over allocation it would have taken me 5 days to transfer all the funds.  This can be a problem, especially when the election window is quite small.

The cap on transfers was not Interactive Brokers' limitation and I thought that there was no solution to this issue and when I went to transfer another $50,000 into my account for my latest rights issue participation I was pleasantly surprised to find out that they had made funding your account even easier.

You can now fund your account using BPAY

Instead of having to
fund your account using a wire transfer, you can now fund your Interactive Brokers account using BPAY.  This is incredibly useful as most financial institutions do not have a limit on how big a bill you can pay.  I managed to fund the full amount that I wanted to in one hit and like the wire transfer the amount hit my account the very next day.

I'm giving Interactive Brokers full kudos for solving this problem - it works well for everyone - I don't have to remember to fund my account days in advance of wanting to do something big and Interactive Brokers gets more business out of me.

Further there are no additional fees or charges for using BPAY (unlike some other bank transfer related services) which makes it my preferred way to fund my share trading accout.

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