Investment club broker

[Mark Bentley]

Hi Mark,

We haven’t yet pursued ii to seek an extension, as ISTM that doing so only makes sense if there is a viable alternative.

So, if someone can get back to me with the results of trying to open an account with Interactive Brokers (or another provider), ShareSoc can approach ii to seek some more time for transfers to take place.

I am working on an article for ShareSoc’s website, offering guidance/suggestions for investment clubs.

Best,
Mark

[John Calvert]

Our Investment Club is going through the process of applying for an account with Interactive Brokers (IBKR). I have to say it is quite tortuous, and I wouldn’t have been able to do it without help from Interactive Brokers sales staff. As for an LEI, I stated we didn’t have one, and the application offers that Interactive Brokers will apply on our behalf. Watch this space. So, we have reached the stage where our application for an account is in, and now waiting approval. No doubt there will be more questions along the way, but I will keep you informed of progress.

[Mark Bentley]

In reply to reply #32111

Thanks John,

That’s most helpful.

We’ve just published a news article on this: https://www.sharesoc.org/sharesoc-news/investment-clubs-under-threat/ . Feel free to comment on the article with your experience.

Best,

Mark

---

[Neil Stevenson]

Our investment club is also having the same issue with II closing our account in a few weeks time. Like others, we’ve been trying to find an alternative broker but are currently drawing a blank. It would be great to know if anyone has any success with IBKR or anywhere else as a viable route. We’re relatively small (now just 6 of us), so fees can be significant factor.

[John Calvert]

Update. We are making progress. This morning I’ve been asked to fund the account to obtain an LEI. They have also asked for a full list of members, (so far only got my details), and proof of ownership. So, not over the finish line yet, but it’s looking more hopeful.

[Sandy Forbes]

Excellent John thank you. You have a lot of people awaiting your work’s results. You see me but there are 16 others in our Investment Club keenly watching too. Future ShareSoc members I’m hoping. Thanks again. Sandy

[Mark Bentley]

FYI, another boutique brokerage has stepped forward to offer a service to investment clubs: GHC Capital Markets Limited.

They’re also quite small, turning over £2.1m in 2023/4.

[John Calvert]

CEO Gerry Perez of IBKR has confirmed that they will accept Investment Clubs.
https://www.interactivebrokers.eu/campus/podcasts/ibkr-podcasts/ibkr-unfolded-the-swiss-army-knife-of-investment-clubs/
As for our Account Application, I’m still struggling. Having thought I was there they have now come back and said there was an error on my original application, (without telling me what it was), and questioning proof of ownership. So, I’ll get back to them to find out what I need to do, and post here in due course.
Anyone else succeeded in opening an account with IBKR yet?

[John Calvert]

Morning everyone. I’ve been hanging back, hoping I’d be able to tell you we had succeeded in opening an account with IBKR, but we are still not quite there yet. Problem is they are busy, so they ask a question, we reply, then it can be two days before that’s looked at, then another question, etc. so it takes time. Do persevere.
So, right now we have answered all their questions, ticked all the boxes, provided all the information, and got the green light on Friday that we could fund the account, though the application is still awaiting final approval, so I’m hopeful.
We had to provide constitution, proof of authority to open an account, photo ID of officers, full list of members with percentage held by each and complete a W8-BEN.
Nothing happens over the week-end so I’m hoping to get final approval Monday or Tuesday, when I’ll report back either way.

[Mark Clenshaw]

Thanks everyone for their involvement.
Sadly my own small club has decided to pack up. There is not a lot of interest currently in the ShareSoc alternative but I hope to keep members involved via a regular but informal beer and blather session. Maybe ShareSoc can be a later move.
Best wishes to all.
Mark

[John Calvert]

Thought we were there, but no. Today’s question: “Please provide details on the membership process including how new prospecting members become aware of the investment club and the specific criteria needed to be accepted as a member.” We will keep trying.

[Mark Bentley]

Another boutique brokerage has indicated that they may be prepared to offer a service for investment clubs.

The firm is GPIM Limited

You’ll need to do your own due diligence and further details can be obtained from Director of Investments Ed Hill-Smith ehs@gpimlimited.com

[Ian Beaty]

For What it’s worth, our Club is now applying to GHC Capital Markets.
It appears to be less costly and less burdensome than IBKR or Pillings.
Though we still need to get an LEI code.

[Richard Jones]

Good luck all of you that are still trying. We have now paid everyone out and closed our club 🙁

[John Calvert]

A brief update. I’m still not able to tell you we have been accepted by Interactive Brokers.

Position is I have answered all the questions put to me to satisfy the new business team. Having satisfied them the application has been sent for approval, which takes 3-4 days I’m told. So, expecting an answer, one way or the other Monday or Tuesday.

[Author]

Posts