Interactive Brokers enables TWS users to change trades’ cost basis via Tax Optimizer tool

Maria Nikolova

Users of the platform can try up to seven different automated matching methods across all lots, including Highest Cost or Maximize Long Term Gain, or manually for a specific lot.

Online trading major Interactive Brokers continues to enhance its TWS platform. The latest (beta) release of the platform allows traders to change their trades’ cost basis directly within TWS using the built-in Tax Optimizer tool.

Users of the platform can try up to seven different automated matching methods across all lots, including Highest Cost or Maximize Long Term Gain, or manually for a specific lot. They can see each trade’s potential profit and loss using their selected method, broken out by long-term and short-term gain or loss.

To use the Tax Optimizer, start from the Trade Log, your Portfolio, or a Watchlist. Right-click on any ticker and choose Select Lot. If this selection is not visible, expand the context menu using the arrow at the bottom of the right-click list. If you have available lots to match the Tax Optimizer window will populate. The Closing Trades sections displays all unsettled trades that are available for matching.

Modify the tax lot matching method individually for each Closing Trade, or select a matching method from the pick-list in the top panel to apply to all closing trades.

When you change the method, both your short and long-term P&L are recalculated. When done, click Submit to save. These changes will be reflected on your next account statement.

Users of the platform can make changes to a trade’s matching method until it has settled.

Let’s note that Tax Optimizer is not available to Canadian or Interactive Advisors clients.

Among the latest improvements to TWS is the expansion of TipRanks ratings which now include non-US stocks, with added coverage for over 6,700 Canadian and European companies. TipRanks evaluates recommendations by financial analysts and bloggers, and then ranks their recommendations based on historical accuracy and performance.

To view TipRanks Ratings and Sentimental Analysis, select a symbol and open Fundamentals Explorer from the New Window drop-down. Open the Analyst Ratings tab and click TipRanks Ratings or TipRanks Sentiment.

TipRanks Ratings and Sentiments are available across all of Interactive Brokers’ trading platforms, including Client Portal, IBKR Mobile for iOS and IBKR Mobile for Android.

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