How to do an SBLOC at Interactive Brokers (IBKR)

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Learn how to do a Securities-Based Line of Credit (or margin loan) with an Interactive Brokers brokerage account.
Overview of SBLOCs video - • Intro to SBLOCs
Interactive Brokers (IBKR) - www.interactivebrokers.com/
⚠️ Exercise caution before using this strategy. Do your own research and make sure you fully understand the risks you are undertaking!
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith.com/courses/
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.

Опубликовано:

28 июн 2023

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Комментарии : 55

@justnit 8 месяцев назад

That was simple! Thank you so much for this. I’m usually in cash with the way I trade options. I guess I’ll have to become a real investor to create this margin loan

@RE-jb2ke Месяц назад

Good stuff. Thx

@CFH298 7 месяцев назад

Frec has an SBLOC rate of 6.33% no matter the amount. It’s been really good for lower net worth individuals.

@sharonwinsmith 6 месяцев назад

Nice!

@ThisIsCarine 6 месяцев назад

what's FREC? can you add link?

@ThisIsCarine 6 месяцев назад

@cfh298 what's your experience with FREC? trying to compare it to IBKR

@CFH298 6 месяцев назад

@@ThisIsCarine they are a start-up but all funds are managed by Apex Security. I love their customer service and fees are great for a direct indexing of SPY. Portfolio line of credit is awesome too with the rates.

@l0gic23 3 месяца назад

@@sharonwinsmith what the Frec? Any experience with it... Just getting into your videos over the last week. Do you have one that talked to different legit brokers besides the household names?

@cantaloupefighter Месяц назад

do sblocs also work for IRAs? or only taxable brokerage accounts?

@XNDTRADES 3 месяца назад

Can I accumulate interest payments? If I get 1 stock thats worth 1k and I borrow 500 with 5% yearly interest. If I dont pay interest then my margin call level would be at 550$ right? Or am I forced to pay the interest? Thank you

@Sh0nuff73 2 месяца назад

So any follow on the IBKR pro vs FREC? Just curious

@MillsM 29 дней назад

How long before being able to withdraw. In IBKR portfolio balance I see an amount in Cash Available but when I go to withdraw I see a ridiculously low amount. Should I have a specific account (margin account vs Portfolio account)?

@devinwantsanaccount1551 4 месяца назад

What is your strategy to minimize commission fees at IBKR? You said you transfer in the securities from another broker instead of purchasing directly through IBKR, but aren't you still being charged a commission every time they reinvest dividends?

@stevecha3612 6 месяцев назад

Thanks, how have SBLOC rates changed over time? Is there any data on what rates have been over the last 20 years with IBK? I assume the rates vary over time, unlike a fixed rate you may get for a commercial property mortgage?

@sharonwinsmith 6 месяцев назад

The rates are variable and are definitely going to change. It is something you would have to monitor if you were to take out an SBLOC.

@gustavodiaz4689 9 месяцев назад

Hi 👋 quick question. I have my portfolio with fidelity do I transfer my shares to IBK or do both accounts get linked with each other?

@sharonwinsmith 9 месяцев назад

I would imagine that you would have to open an account at IBKR and actually transfer the shares over from Fidelity. I'm not aware of anybody ability to link accounts but have never tried that.

@chayden1402 10 месяцев назад

Hey 👋 Sharon how do you pay back the loan? Also how do you find out the interest you have too pay on the account. Please and thanks for the great content 🙏

@sharonwinsmith 10 месяцев назад

Thank you for watching! I am actually in the process of working on a course on the Buy, Borrow, Die Tax Strategy which will have an entire section dedicated to SBLOCs and would answer your questions. I will do a deep dive in the course on SBLOCs because of high number of requests I've been getting around these topics. I hope to have this out soon!

@user-ko6od9ht8r 9 месяцев назад

@@sharonwinsmithis it soon yet?

@bambambino23 24 дня назад

Isnt tgere a fee to transfer positions? Costs more than commissions.

@lonamisa_ Год назад

hi sharon, are ETF assets considered part of the "securities" definition against which you can get a SBLOC?

@sharonwinsmith Год назад

Yes, you should be able to include ETFs in your portfolio value for purposes of using an SBLOC.

@ThisIsCarine 6 месяцев назад

@@sharonwinsmith what about mutual funds, will they work for SBLOC? In general, what's the most appetizing thing to have in your portfolio for the sake of getting as much SBLOC as possible: stock, MF or IF?

@RareBoom 5 месяцев назад

Very very helpful thanks! I wiuld want to know what the interest rate is, i didn't see where that is listed?

@sharonwinsmith 5 месяцев назад

Rates are variable and will be different across brokerages. You can find the rates for Interactive Brokers here www.interactivebrokers.com/en/trading/margin-rates.php

@estherch8394 6 месяцев назад

When transfer money into my bank account, does it count as selling some of the stock investment? Thanks.

@sharonwinsmith 6 месяцев назад

If you transfer cash into an account with a negative cash balance of an SBLOC, that is going to automatically apply against the outstanding SBLOC balance (and decrease the negative cash balance).

@jamesa8225 11 месяцев назад

So correct me if I’m wrong. You use e Trade and Interactive Brokers with the same assets and you transfer them back and forth. Or do you also have separate assets in both accounts.

@jamesa8225 11 месяцев назад

I guess what I’m asking is if it’s possible to have an account full of assets that can be displayed on different platforms? Like for example I start out using M1 and they give me an ID # that’s unique to that portfolio and I switch to E*Trade using that same Id number? Or are you literally transferring each stock or asset to international brokers? Wouldn’t transferring be a taxable event?

@sharonwinsmith 11 месяцев назад

I have multiple brokerage accounts at various places. I only have an SBLOC with IBKR. So the SBLOC is only against securities in the IBKR account. If I need to transfer more securities to IBKR to increase borrowing capacity or avoid a margin call, I could easily transfer from other accounts like E*Trade to IBKR. But the SBLOC is only against the securities in my IBKR account.

@fjcardenas1 4 месяца назад

Sharon. To transfer securities means transfer your stock? Without first selling it?

@andersonandrew112 6 месяцев назад

Are there minimum deposit requirements to open an SBLOC? Does accredited investor requirements apply? Thanks

@sharonwinsmith 6 месяцев назад

Most brokerages I'm aware of don't have a minimum to do an SBLOC. You would just have to meet the maintenance margin requirements to support the amount of your SBLOC. But, each brokerage is different so you would want to check the rules wherever you are planning to do the SBLOC. No requirement to be an accredited investor. That really only comes into play when you are looking at making investments in investment funds.

@kymandjamesshh 10 месяцев назад

If i obtain a sbloc and the stock goes up does the loan shift as well? Also how does one contact you for help/hiring you

@sharonwinsmith 10 месяцев назад

The amount of total SBLOC you can take is a function of the value of your stock portfolio. So as your portfolio value increases (as stocks increase), the amount of SBLOC you could take increases. If you have an outstanding SBLOC, it shouldn't just automatically increase as the value goes up. It just means you can take out more of an SBLOC if you want. I don't do any work with clients anymore but will keep releasing content on these topics and more in the future!

@makesifrank9449 7 месяцев назад

Hello , the other brokrage accounts for me to get sbloc i must " add to managed account " meaning they get a 1 % fee addition to the manage my account . Is that the case with ibk ? Or you are incharge of your holding ? Also i checked the pro says free trading us stocks ect btw on the website

@sharonwinsmith 7 месяцев назад

There are no fees for SBLOCs at IBKR. They do charge a fee for trades which is why I never buy and sell stocks through IBKR. I do that through my Etrade account and transfer securities over to IBKR as needed.

@makesifrank9449 6 месяцев назад

I called IBK in the US, and the gentleman said they only do margin loans, not SBLOC. he said that's a banking product and IBK is not a bank? any clarification or he is not aware ? I don't want to move forward and open up a brokerage with IBK if I cannot use this feature in the future. I currently have sbloc with Merill however to get that product I must have an "advisor " which comes with around 1%Fee @@sharonwinsmith

@yaskovdev 9 месяцев назад

Thank you for the video. I guess this does not work with a Cash account and you need a Margin account for that? Just tried that and I cannot withdraw more money from my IBKR account than I have in cash.

@sharonwinsmith 9 месяцев назад

Thanks for watching! If you just have cash in your account, you wouldn't be taking an SBLOC. You would just be taking distributions of cash out. An SBLOC is borrowing against securities or bonds in your account. You need collateral in the form of shares for the SBLOC.

@bambambino23 24 дня назад

I dont see anywhere that they have sny comissions at all

@DSS3390 3 месяца назад

Can I still sell covered calls on the IBKR acct holdings after taking out sbloc cash against them?

@GGtheseventh 11 дней назад

You find the answer to this?

@seerutkaur3773 4 месяца назад

Are you from Canada?

@sharonwinsmith 4 месяца назад

I'm in the U.S.

@kimsou2652 5 месяцев назад

Is there a minimum about of how much I have invested in stocks before I can do an SBLOC?

@sharonwinsmith 5 месяцев назад

Most banks don't have a min that I have encountered.

@bambambino23 24 дня назад

Most have minimums. Every broker I s VASTLY different and there are no industry average. Some require 400k in minimum value. Some require 200k. Some require 100k. Some have no minimum. Some allow 90% borrowed, some as low as 40%. Its best to simply contact them and just ask :)

@rsmiele Месяц назад

Robinhood margin rates are lower than IBKR Pro.

@CFH298 10 дней назад

Margin rates != SBLOC

@DerikAasansLevelUpTravel 7 месяцев назад

@sharonwinsmith regular account you can SBloc withdraw 50% . Does that change if you get “portfolio manager”? I’m a IBKR too…

@sharonwinsmith 6 месяцев назад

Do you mean you have an account at IBKR managed by a financial advisor? I'm not aware of any reason why you couldn't still do an SBLOC in that case. However, your financial advisor is financially incentivized to advise you not to do SBLOCs because it likely decreases the fees they earn.