Euro Pacific Bank

Enable Two-Factor Authentication (2FA)

What is HandyKey?

HandyKey is a two-factor security application which you install directly on your iOS or Android mobile device, eliminating the need to carry a separate physical device for logging into your account. If you have multiple Euro Pacific Trader accounts with distinct usernames, you can access all of those accounts from HandyKey.

Our brokerage platform provider and custodian requires that two-factor authentication is enabled.


handkey home

Download Now

Download and install the app by clicking the buttons below, and then activate the application within minutes.

Download on the Apple App Store
Download from Google Play
 
 

Activation Instructions

1. Launch HandyKey on your iOS or Android device.
2. Tap the Register Two-Factor button.
3. Follow the instructions on your device. You will be asked to log into HandyKey using your standard Euro Pacific Trader login details, as well as register your mobile phone number.
4. Enter your Euro Pacific Trader username and password and tap Continue.
5. Enter your mobile phone number, correspondent country, and tap Get Activation SMS. Please note your device must be able to receive SMS.
6. You will receive an SMS containing an Activation Token. Enter the token into the Activation Code field. Tap Activate.

How do I enable the Dividend Reinvestment Program (DRIP)?

Euro Pacific Trader’s dividend reinvestment program (DRIP) automatically reinvests your qualifying cash dividends into shares of the issuing company. Please note that shares are not purchased via an issuer-sponsored reinvestment plan, but rather in the open market.

Overview

  • Only US and Canada-listed common and preferred stocks are eligible for Dividend Reinvestment.
  • Once DRIP is enabled account-wide, only dividends from eligible stocks will be reinvested.
  • We will charge our standard commission for the purchase.
  • Currently, there is no option for you to enable fractional shares. Cash from dividends that is insufficient to purchase a whole share will have the portion of the cash dividend insufficient to purchase a whole share credited to the account in cash.
  • If your account is in a margin deficit and can’t initiate new positions, dividends will not be reinvested, even if you have dividend reinvestment enabled.

Frequently Asked Questions

When does reinvestment occur?

On the (trading day) morning following the receipt of a dividend, we will use the dividend payment (or cash-in-lieu of dividend payment if you have a margin account and your shares are on loan at the time of the dividend payment) to purchase additional shares of that stock.

If you are a shareholder of record as of the close of the dividend record date and enrolled in the dividend reinvestment program prior to the dividend payment date, we will use the dividend payment to purchase additional shares of that stock on the morning of the trading day which follows confirmation of our receipt of the dividend.

If a customer’s credit-check fails on the day dividend was paid, the system continues to check for the next 30 days and may include it in the DRIP file when the credit-check passes. In this case the system may book a delayed DRIP trade (i.e. trade date after pay date). We will also look back 30 days from the date of enrollment and will reinvest any dividends paid to the account within that 30 day time period.

At what price does reinvestment take place?

As shares are purchased in the open market, generally at or near the opening of trading and subject to market conditions, the price cannot determined until the total number of shares for all program participants have been purchased using combined funds.

In the event that the purchase is executed in multiple smaller trades at varying prices, participants will receive the weighted-average price of such shares (i.e., each participant receives the same price). In the event we are unable to reinvest the combined proceeds, each participant will receive shares on a pro rata basis (based on the dividend amount to which each participating client is entitled).

Are the full proceeds of the cash dividend available for reinvestment?

No. Only the proceeds net of commissions and taxes (if the account is subject to withholding) is reinvested. Standard commissions are applied to each purchase.

Can account holders elect which securities are eligible for reinvestment?

No. Dividend reinvestment can be turned on or off for the account in its entirety and cannot be elected for a subset of securities held in the account.

Apply for DRIP

If you’d like to enable DRIP on your Euro Pacific Trader account, please email [email protected] and we will provide you with an Authorization Form.


Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Trading Restrictions: EU Regulations

You have been directed to this article because you’ve attempted to trade securities on the Euro Pacific Trader brokerage account that are unfortunately not available to Retail Clients due to one or more of the European Union legislative acts below.

Why can’t I trade the instrument?

In general, the regulations require manufacturers and intermediaries of trading products to disclose specific information on the costs and charges of certain investment products or services. Their regulatory objective is to help consumers assess the value for money of these investments and make more informed investment decisions.

In other words, it is the responsibility of firms like us to enforce the regulations when serving retail investors.

European Regulations

Markets in Financial Instruments Directive (MiFID II)

Created in 2014 and going into effect in 2018, MiFID II replaced the original 2004 MiFID legislation and is a much wider ranging. In addition, much of the trade reporting requirements were published in a separate document called, Markets in Financial Instruments and Amending Regulation (MiFIR) that has 55 articles of its own.

Markets in Financial Instruments Regulation (MiFIR)

The main focus of MiFIR is related to rules and reporting requirements of executions. Although MiFIR was technically passed as its own regulation, it is nearly always referred to in connection to MiFID II. This is due to much of MiFIR’s content being an updated version of reporting rules in the original 2004 MiFID legislation.

Packaged Retail & Insurance-based Investment Products (PRIIPs)

The PRIIPs regulation requires every products manufacturer and distributor to provide retail investors with a Key Information Document (KID). KIDs are standardised, three page documents that provide specific information such as the aggregated charges associated with a PRIIP as well a breakdown of costs, its perceived riskiness, and a variety of performance scenarios.

If no KID is available from the manufacturer, the PRIIP will be restricted from trading for EEA retail customers.

What does this mean for me?

In order to trade the security in question, these regulations require us to re-classify you from “Retail” to “Professional”, based on certain qualitative and quantitative requirements:

Qualitative Requirements

We must conduct an assessment of the your expertise, experience and knowledge to ensure that you are capable of making your own investment decisions and that you understand the risks involved.

Quantitative Requirements

You must satisfy two of the following criteria:

  • You have carried out trades in significant size (EUR 200,000 or greater) on the relevant market at an average frequency of 10 per quarter over the previous 4 quarters;
  • Your entire portfolio including cash (and positions not held with us) exceeds EUR 500,000;
  • You have worked in the financial sector for at least 1 year in a professional position.

If you believe your account meets the above criteria, please contact us at [email protected].


Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Disclosure of Risks of Margin Trading

Euro Pacific Securities (“EPS”) is furnishing this document to you to provide some basic facts about purchasing securities, forex, futures and other investment products on margin, and to alert you to the risks involved with trading in a margin account. “Margin trading” can mean engaging in a transaction in which securities are purchased partially through a margin loan extended to you by EPS (for the MetaTrader 4 platform), or Interactive Brokers (“IB”)1 (for the Euro Pacific Trader platform), for which the securities act as collateral. Margin trading can also mean trading investment products such as futures or options in which an initial “margin” deposit is made to secure your obligations and further margin may be required to secure your obligations as the value of your positions changes.

Before trading stocks, futures or other investment products in a margin account, you should carefully review the margin agreement provided by EPS and you should consult EPS regarding any questions or concerns you may have with your margin accounts.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from EPS, or IB. If you choose to borrow funds from EPS, or IB, you will open a margin account with the firm. The securities purchased are EPS’s or IB’s collateral for the loan to you. If the securities or futures contracts in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, EPS, or IB can take action, such as sell securities or other assets in any of your accounts held with EPS or issue a margin call, in order to maintain the required equity in the account.

You should understand that pursuant to the EPS Margin Agreement, EPS, or IB generally will not issue margin calls, that EPS, or IB will not credit your account to meet intraday margin deficiencies, and that EPS, or IB generally will liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation.

In addition, it is important that you fully understand the risks involved in trading securities or futures contracts on margin. These risks include the following:

  • You can lose more funds than you deposit in the margin A decline in the value of securities or futures contracts that are purchased on margin may require you to provide additional funds to EPS or you must put up margin to avoid the forced sale of those securities or futures contracts or other assets in your account(s).
  • EPS, or IB can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements, or if EPS, or IB has higher “house” requirements, EPS, or IB can sell the securities or futures contracts or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
  • EPS, or IB can sell your securities or other assets without contacting Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. As noted above, EPS, or IB generally will not issue margin calls and can immediately sell your securities or futures contracts without notice to you in the event that your account has insufficient margin.
  • You are not entitled to choose which securities or futures contracts or other assets in your account(s) are liquidated or sold to meet a margin EPS, or IB has the right to decide which positions to sell in order to protect its interests.
  • EPS, or IB can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice. These changes in firm policy often take effect immediately. Your failure to maintain adequate margin in the event of an increased margin rate generally will cause EPS, or IB to liquidate or sell securities or futures contracts in your account(s).
  • If EPS, or IB chooses to issue a margin call rather than immediately liquidating undermargined positions, you are not entitled to an extension of time on the margin call.

1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.
For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

What is my Base Currency?

Overview

Your Euro Pacific Trader “base currency” refers to the currency in which your account is denominated in, in terms of reports, statements, and accounting.

In other words, it’s the currency in which you view your entire account, which can be composed of international securities in different currencies. The Base Currency is also the currency used for determining margin requirements.

Please note that having a Base Currency does not mean you cannot hold other currencies. Please read our article Do I need sub-accounts in different currencies? to learn how Euro Pacific Trader’s single multi-currency account works.

Can I change my Base Currency?

Yes, if you would like to change your Base Currency, simply send an eBanking secure message stating your new base currency of choice for your Euro Pacific Trader account.

Base Currencies are available in AUD, CAD, CHF, CNH, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, NOK, NZD, RUB, SEK, SGD and USD.

Why do I have a negative cash balance?

Trading foreign securities

The most common cause of a negative cash balance is buying a security without sufficient cash in the local currency of that security.

Remember, Euro Pacific Trader does not allow you to “overdraw” your account in the traditional sense.

Instead, if you have Margin Trading enabled and you have available cash in other currencies, a margin loan will be created when you buy the foreign security, which is secured by your available currency.

In other words, your negative balance is being “collateralized” by other available cash or securities in your account.

This means you can buy securities in multiple markets and accrue negative balances (or “margin loans”) in those local currencies, and accrue negative interest as a result.

How do I cover my negative balance?

Please follow these transfer instructions to cover your negative balance.

And moving forward, you may disable this feature by turning off Margin Trading. To disable Margin Trading, please go to your eBanking Messages and send us a secure message.

All Euro Pacific Trader accounts as of August 26, 2019 have Margin Trading enabled by default.

How do I cover my negative cash balance?

In order to cover the negative balance inside your Euro Pacific Trader (EPT) account, you’ll first want to decide which available cash balance you want to use.

You can transfer existing cash from your bank account, or use available cash inside your EPT account. Where do you want to transfer the funds from?

Option 1: From my bank account

Please follow the standard Transfer Between Own Accounts procedure to fund your EPT account with the intended currency.

Remember, you are able to fund cross-currency, meaning that you can transfer funds from your USD bank account to your GBP brokerage account, and the system will convert it for you upon transfer.

Please read the full instructions above for more details.

Option 2: From my existing EPT balance

You cannot convert/transfer funds between balances inside your EPT account. In order to “convert” funds inside your EPT account, you must transfer the funds to your bank account first.

Please follow these steps

1. Use the Between Own Accounts transfer in the Transfer menu to transfer the funds back to your bank account.

Note: If your cash is “collateralizing” any open positions, you may not be able to remove the cash out of your EPT account, as the system will attempt to reject your requests in order to protect your positions. However, if the system allows, withdrawal requests entered in a margin account may be honored, thus it is ultimately your responsibility to ensure that any withdrawal requests leave sufficient collateral in your account to prevent a margin call/liquidation.

2. Request another transfer from your newly-funded bank account to the brokerage account in the currency you’d like to fund.

Remember, you are able to fund cross-currency, meaning that you can transfer funds from your USD bank account to your GBP brokerage account, and the system will convert it for you upon transfer.

3. Please continue with the standard Transfer Between Own Accounts procedure.

How do I disable margin trading?

What is Margin Trading?

Simply, buying on margin is borrowing cash to buy a security.

For most trading clients, margin obligations are calculated by a defined formula and applied to each “marginable” financial instrument. To read more about this formula, please read our Interest & Financing page.

Do I have margin trading enabled?

All new Euro Pacific Trader applicants will have the option of enabling Margin Trading.

Margin Trading comes with a host of risks and costs, one of them being EPT automatically creating a margin loan when buying a security denominated in a currency that you do not have available, leading to interest charges.

To disable Margin Trading, please go to your eBanking Messages and send us a secure message.

Do I need sub-accounts in different currencies?

No, as sub-accounts don’t exist on Euro Pacific Trader (EPT). Read below to find out how you can hold multiple currencies in your EPT account and use them to buy foreign securities.

Single Multi-Currency Account

Remember, your Euro Pacific Trader has a single, multi-currency cash account that you can fund and trade with. This means you do not need sub-accounts in different currencies.

Simply, fund your account with all of the currencies you’d like to hold, and those currencies will be deposited into your EPT cash account and held separately.

client portal cash portfolio

For example, if you would like to buy stocks on the London Stock Exchange, you can fund your EPT account with GBP. The GBP will be credited to your EPT cash balance in addition to other currencies you already own there.

How trading foreign securities works

When buying a security, please note that Euro Pacific Trader will always attempt to fund the trade using the local currency of the security. In other words, if you buy a stock on the London Stock Exchange, you can expect that your GBP cash balance will be drawn from automatically.

What happens if you don’t have a sufficient currency balance to support the trade?

If margin trading is enabled on your account

If Margin Trading is enabled on your account and you are trading a security that is denominated in a currency that you do not sufficiently own, a margin loan is created, secured by your available currency.

If you want to eliminate the margin loan, you may do so at any time by depositing new money of that currency into the account.

If margin trading is disabled on your account

Your trade will be rejected, as a margin loan collateralized by your available cash cannot be created. You would instead deposit new funds in that currency from your bank account as usual.

Update Email Address

Please follow this procedure to update the email address on your Euro Pacific Trader account profile. Note that the the instructions are different based on your account type, Individual vs. Corporate.

Step 1: Install HandyKey or HandyTrader

First, you will need the HandyKey or HandyTrader applications.

HandyKey is the generic name of Euro Pacific Trader’s Two-Factor Authentication (2FA) applications, while HandyTrader is the MobileTrader application that you can use to trade your account, which also comes with the 2FA app.

Click here to download either one now on iOS or Android. After installing, you will be asked to enter your EPT username and password to create a PIN.

Step 2: Login to your Euro Pacific Trader

Access your Euro Pacific Trader Client Portal.

Then, go to Menu > Settings > User Settings > Communication > Email Address, and click the gear icon. Enter your new email address, confirm, and Continue.

email update


Enter your Username and Password.


change email
 
 

Step 3: Open HandyKey or HandyTrader App

After the app has been installed, enter the Challenge Code from your Client Portal screen, into your app.

handy trader change address


Your app will generate a “Response String”. Enter the Response String into the Passcode field of your Client Portal.

change email address handkey
HandyKey displayed on an Android operated smartphone.

Click Continue in your Client Portal and you will receive confirmation that you email address has been officially changed in Euro Pacific Trader.

Step 1: Install HandyKey or HandyTrader

First, you will need the HandyKey or HandyTrader applications.

HandyKey is the generic name of Euro Pacific Trader’s Two-Factor Authentication (2FA) applications, while HandyTrader is the MobileTrader application that you can use to trade your account, which also comes with the 2FA app.

Click here to download either one now on iOS or Android. After installing, you will be asked to enter your EPT username and password to create a PIN.

Step 2: Login to your Euro Pacific Trader

Access your Euro Pacific Trader Client Portal. Then, go to Manage Account > Security > Change Email Address and click OK when you see the popup.

update email address

Enter your new email address, confirm, and Continue. Re-enter your Euro Pacific Trader username and password.

You will be presented with a Challenge Code, which will need to be entered into your HandyKey application.

update email address
 
 

Step 3: Open HandyKey or HandyTrader App

After the app has been installed, enter the Challenge Code from your Client Portal screen, into your app.

handy trader change address


Your app will generate a “Response String”. Enter the Response String into the Passcode field of your Client Portal.

change email address handkey
HandyKey displayed on an Android operated smartphone.

Click Continue in your Client Portal and you will receive confirmation that you email address has been officially changed in Euro Pacific Trader.