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Old 24.10.2018, 20:27
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Interactive Brokers-Trading ETFs

Hi guys

I am interested in trading ETFs. I have gone through older posts where people have mainly mentioned IB for their low rates compared to Swiss trading platforms. I did register with IB but they do not give me permission to trade ETFs. I emailed them and they came back saying that people residing in the EEA(European Economic Area) are not allowed to trade ETFs because of a european regulation called PRIIPS. Before Switzerland, I lived in Sweden for 5 years and I was trading normally any US ETF and I never had any problem with it. Has anyone else had the same problem? I am only interested in holding commodities-ETFs for the long term. Thank you very much in advance!
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  #2  
Old 25.10.2018, 10:45
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Re: Interactive Brokers-Trading ETFs

I use IB and I can buy and sell ETFs just fine... I didn't know there was any extra restriction, I assumed they are just treated like any stock
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  #3  
Old 29.10.2018, 20:48
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Re: Interactive Brokers-Trading ETFs

I'm very confused. PRIIPS came into force in Jan 2018. Do you mean that you told IB that you're living in Switzerland, and as a result you can't trade ETFs?

Surely, other people who have IB accounts would have noticed if they were not able to trade ETFs as a result of PRIIPS because they are not able to produce KIDs for people residing in Switzerland. Or am I missing something?

I am asking because I am looking into opening an IB account and I definitely want to be able to trade ETFs, so if it's a no go, this is big news.

EDIT: This is from their website:

Quote:
Who should receive a KID?
Retail investors domiciled in the EEA should receive a KID prior to investing in a PRIIP. If no KID is available from the manufacturer, the PRIIP will be restricted from trading for EEA retail customers.
That makes me think that you are trying to trade some obscure ETF for which the retailer hasn't produced a KID and therefore can't sell it to people in the EEA. Can you confirm that?

Last edited by amckayn; 29.10.2018 at 21:16.
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Old 30.10.2018, 12:07
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Re: Interactive Brokers-Trading ETFs

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I emailed them and they came back saying that people residing in the EEA(European Economic Area) are not allowed to trade ETFs because of a european regulation called PRIIPS.
I thought Switzerland should be exempt from this, as it has not signed the EEA.
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Old 10.11.2018, 17:03
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Re: Interactive Brokers-Trading ETFs

I emailed IB about it and here is the answer I received:

"As of today, Switzerland is not in the EEA, in that case there is no PRIIPs regulation."

Given that, I don't understand why you were restricted from buying your ETFs, but it shouldn't be a problem.
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Old 18.04.2019, 11:28
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Re: Interactive Brokers-Trading ETFs

Hi all,


Sorry for such late answer. Here is the answer I received from IB about trading ETFs, when located in Europe. As someone already mentioned it's due to absence of KIDs. How can I find which ETFs are offered with KIDs?



See below IB answer:


"European retail clients are restricted from trading in US ETFs.

Opening orders from retail investors residing in the European Economic Area (EEA) who attempt to enter an opening order that are associated with a product that does not comply with the EU's Packaged Retail and Insurance-based Investment Product Regulation (PRIIPS) will be rejected. The regulation is intended to enhance understanding of these products through the provision of disclosure documentation. This documentation is referred to as the Key Information Document (or "KID") which. The KID provides information such as product description, costs, risks & performance.

In terms of opening new positions - we do not have a timeframe as to when (or if) these will be updated or tradable again. You should be able to close any open position, including any ETF, through your trading software.

The products that this applies to have returns associated with a reference value and include derivatives (options and futures), ETFs, ETNs, funds and certain debt instruments. It does not apply to stock, FX and standard bonds.

Orders will be rejected if the manufacturer, or issuer, of the product has decided not to provide the KID required to distribute the product to EEA retail residents."
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Old 18.04.2019, 19:10
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Re: Interactive Brokers-Trading ETFs

Maybe tell us the ETF you try to buy. Sounds like that specific one doesnt have a KID so can't be allowed, not all of them in general.
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Old 19.04.2019, 09:08
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Re: Interactive Brokers-Trading ETFs

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Maybe tell us the ETF you try to buy. Sounds like that specific one doesnt have a KID so can't be allowed, not all of them in general.
Hi Troublawosome An example would be SLV...
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  #9  
Old 19.04.2019, 10:14
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Re: Interactive Brokers-Trading ETFs

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Hi Troublawosome An example would be SLV...
Just open a US brokerage account with Schwab or one of the other US platforms.
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Old 20.04.2019, 10:53
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Re: Interactive Brokers-Trading ETFs

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Just open a US brokerage account with Schwab or one of the other US platforms.
"Intended only for US citizens..."
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  #11  
Old 20.04.2019, 10:58
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Re: Interactive Brokers-Trading ETFs

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"Intended only for US citizens..."

At ameritrade not!


https://invest.tdameritrade.com/grid...lication?nce=y
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Old 20.04.2019, 10:59
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Re: Interactive Brokers-Trading ETFs

Thanks a lot. But how is that different to IB when it comes to ETFs and KIDs offered to European customers?
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Old 20.04.2019, 11:03
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Re: Interactive Brokers-Trading ETFs

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Thanks a lot. But how is that different to IB when it comes to ETFs and KIDs offered to European customers?

Assume not much diff..

However, I don't invest via ETFs.

Don't like em much.



https://www.tdameritrade.com/investm...ucts/etfs.page
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Old 20.04.2019, 13:37
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Re: Interactive Brokers-Trading ETFs

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"Intended only for US citizens..."
I have an account & not a US citizen, they even have a Swiss local no. Try the UK site & select Switzerland brings this up https://international.schwab.com/pub...unt?country=SZ
Please use the account application form below if you live in the U.K., Switzerland, Belgium, Germany, or Spain

Last edited by fatmanfilms; 20.04.2019 at 14:21.
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  #15  
Old 20.04.2019, 14:04
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Re: Interactive Brokers-Trading ETFs

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"European retail clients are restricted from trading in US ETFs.

Opening orders from retail investors residing in the European Economic Area (EEA) who attempt to enter an opening order that are associated with a product that does not comply with the EU's Packaged Retail and Insurance-based Investment Product Regulation (PRIIPS) will be rejected.
[..]"
Simples, update your residence information with IB. Assuming you do indeed have residence in ZH.
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  #16  
Old 20.04.2019, 16:53
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Re: Interactive Brokers-Trading ETFs

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Simples, update your residence information with IB. Assuming you do indeed have residence in ZH.
The thing is that I am a resident of CH and registered as CH resident. Very good point! It should not apply to me, as CH is not either in EU or EEA.
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