Interactive Brokers makes electronic money transfers to third parties available to US clients
Traders can link their account with mobile payment providers such as PayPal or merchants, and pay subscriptions or other recurring expenses.
Online trading major Interactive Brokers has announced that its US clients can now use the Automated Clearing House (ACH) network to safely and securely transfer funds to and from their account with the brokerage.
ACH enables traders to connect their IBKR account to their US-based bank account(s) and to transfer funds between them. In addition, traders can link their account with mobile payment providers such as PayPal or merchants, and pay subscriptions or other recurring expenses such as a mortgage, car payment or utilities to any other entity using a bank on the network.
US clients who would like to use electronic transfers will need to first enroll in Interactive Brokers’ Integrated Cash Management program via the Transfer & Pay > Integrated Cash Management menu in Account Management or Client Portal. Once enrolled, traders can configure electronic transfers via the Transfer & Pay > Transfer Funds menu.
Clients of the broker can use Integrated Cash Management from Interactive Brokers to earn, borrow, spend and invest globally from a single account. They can also earn market rate interest on their idle balances and extra income from lending their fully paid shares, as well as borrow against their account at low, market-determined rates and use Interactive Brokers’ debit card to make ATM withdrawals or purchases worldwide.
In September 2018, Interactive Brokers said it had added Direct Deposit as a feature of Integrated Investment Management. Direct Deposit lets clients automatically deposit paychecks, pension and social security payments or third party payments to their IBKR account.
One can use Direct Deposit to put cash to work by earning market rate interest on their idle cash balances or investing the cash in stocks, options, futures, forex and fixed income on over 120 global exchanges at lower cost. Setting up Direct Deposit is quick and easy – clients just have to provide IBKR’s routing instructions and their account number to their employer or paying institution.