Euro Pacific Bank

Brokerage Migration Update: August 18, 2022

Summary

As you may recall, if you currently have a Euro Pacific Trader brokerage account at Interactive Brokers (IBKR), IBKR requested that all clients either open new (retail) Interactive Brokers accounts to continue trading.

This is the result of IBKR ending their Non-Disclosed Broker program last year, which Euro Pacific Securities was a part of.

As of June 28, 2022, IBKR has set all existing brokerage accounts to “liquidation only”, which means you’re able to place sell orders and close positions, but you won’t be able to place any buy orders.

Next Steps

1. If you are still completing your new IBKR account application, please continue with that process until the account is activated.

2. If your new IBKR account is already activated, we are currently waiting for guidance from the Puerto Rico regulator (OCIF) on when we can allow IBKR to transfer assets (cash and stock positions) from your existing account to the newly activated account.

Unfortunately we don’t know when OCIF will let us proceed, but there has been some progress on the bank suspension, which is the source of this delay.

3. If you opted out of the migration and therefore are not opening a new Interactive Brokers account and are waiting to transfer your brokerage cash balances back to your EPB bank account, you will be able to do that as soon as EPB receives approval from OCIF to continue processing transactions.

4. If you were not provided a new IBKR account username and password, you likely did not qualify to migrate with Euro Pacific Securities to our new “Fully-Disclosed Broker” relationship, and need to open a regular IBKR retail account, as described here.

If you are uncertain if you fall into this category or have any general inquiries, please contact Trading Support at [email protected].

Thanks for your continued patience as always through this regulatory process.

Applying for Interactive Brokers

This article is intended for clients who do not qualify for Euro Pacific Trader and would like to open an account directly with the retail division of Interactive Brokers. Please use the follow application links based on your account type and/or resident country.

Individual Accounts

Click HERE if you would like to apply for an individual brokerage account at Interactive Brokers.

Joint Accounts

Click HERE if you are applying jointly with another individual and you are residing in any of the countries below.

  • Denmark
  • France
  • Germany
  • Ireland
  • Spain

Corporate Accounts

Click HERE if you are applying for a corporate brokerage account and you are residing in any of the countries below.

  • Austria
  • Cyprus
  • Finland
  • France
  • Germany
  • Greece
  • Ireland
  • Italy
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Slovakia

If you are residing in Canada and are applying for a corporate brokerage account, click HERE to apply.

Margin Requirement — New Calculation: April 28, 2022

Effective 29 April 2022, Interactive Brokers1 will implement a new methodology to measure margin requirements for accounts holding a concentrated position in a low cap stock(s), including all holdings under the same issuer.

New Methodology

Currently, margin requirements for accounts holding a concentrated position in a low cap stock are determined using a proprietary Value at Risk (VAR) methodology, which calculates the theoretical worst-case loss of the position, given a range of price and implied volatility changes. The price scanning range for a given security is the greater of an individual portfolio’s concentration margin rate and the result of a stress test that simulates a price change reflective of a $500 million decrease in market capitalization.

The new methodology applies the same VAR framework, but Interactive Brokers will apply the greater of the individual concentration margin rate or low cap stress test to each asset.

For example, below are two assets held in a single account, issued by the same issuer with the same value, where the market capitalization of the issuer is $715 million.

  • Asset A: Concentration rate is 100%
  • Asset B: Concentration rate is 30%

Under the present calculation, the margin requirement for the portfolio would be based on the $500 million decrease in market capitalization, or approximately 70% of the market value of the 2 assets. Under the new concentration methodology, Asset A minimum price scan would remain at 100% and Asset B would increase to 70%, with an effective margin rate of 85%.

Recommended Actions

To evaluate the new change’s full impact on your portfolio and ensure the accounts remains margin compliant, please see KB Article 2957: Risk Navigator: Alternative Margin Calculator, and/or from the margin mode setting in Risk Navigator, select “MARGIN 20220429”.

Accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance. Therefore, please make necessary adjustments to your portfolio to comply with Interactive Brokers’ new policy.

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.

New Update: Russia-Ukraine Conflict

Responding to the new development of the Russia-Ukraine conflict and its impacts on the markets in the last 24 hours, Interactive Brokers will implement a new maintenance margin requirement as followed:

All ADR/GDR and ETF instruments with Russian securities as underlying(s) will have the maintenance margin requirement of 100%, effective immediately.

The new maintenance margin requirement will be maintained until further notice.

We strongly recommend that accounts with exposure to mentioned securities to take the necessary steps to ensure margin compliance. Accounts that are not margin compliant are subject to immediate and automated liquidation by Interactive Brokers.

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.

Update: Russia-Ukraine Conflict

In light of the recent geopolitical tensions associated with Russia and to address any associated increased volatility, Interactive Brokers will be implementing an increase in the margin requirements for Russian equity products (stocks, ETFs and/or equity options).

Updated Margins

Trading accounts holding Russian products should expect long and short maintenance margin to be increased to the following levels:

Affected Products Long Maintenance Margin Short Maintenance Margin
Russian ETFs/ETPs 25% 25%
Russian Stocks 25% 50%

Timeline of Change

The increase will be phased in over a series of daily increments in the period starting from the New York close on February 24. The new temporary margin levels will be maintained until February 28.

Recommended Actions

We strongly recommend that accounts with exposure to mentioned Russian securities to take the necessary steps to ensure margin compliance throughout the implementation schedule. Accounts that are not margin compliant are subject to immediate and automated liquidation by Interactive Brokers.

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.

Margin Loan Rates Change – December 10, 2021

In 2022, Interactive Brokers1 will implement a new policy for margin loans. Here is a snapshot of the newly proposed policy:

  • Change of borrowing rates for USD, AUD, CAD, CHF, EUR, GBP, JPY, NOK, SEK, and SGD.
  • New tier structure will be applied to all currencies.
  • All impacted tiers will be subject to a 1% minimum floor rate.

While full details of the new policy are pending and they will be available on January 03, 2022, we recommended that you bookmark the mentioned date on your calendar and review our Interest Charged on Margin Loans for details on the new interest rates and tier structure.

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.

Updated Negative Interest Rate Policy: Aug 16, 2021

Background

For several years, many central banks around the world have instituted zero to negative interest rates in order to promote their economic growth priorities. When these policies were first implemented, Interactive Brokers1 believed them to be transitional and established its own rate policy for clients to insulate them to some degree from these central bank strategies.

Unfortunately, the zero-negative rate policies appear to remain the prevailing strategy for the foreseeable future. Therefore, Interactive Brokers is adjusting its current negative rate currency policy, which charges a zero percent interest rate on deposited funds from 100K USD/EUR/CHF or equivalent in other currencies.

Updated Policy

Effective September 1, 2021, the thresholds of balances exempt from negative interest will be reduced to the amounts below.

Currency New Thresholds for Credit Balances
EUR 50,000
CHF 50,000
CZK 1,000,000
DKK 300,000
SEK 400,000
JPY 5,000,000

Deposited funds (“credit balances”) in excess of these amounts will be exposed to the prevailing negative rate regimes. We recommended that you review your portfolio’s cash holding and making changes if it is determined necessary.

For a full listing of credit/deposit rates at Euro Pacific Trader, please click here.

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.

Margin Change — New Calculation: Aug 05, 2021

Effective after the US market close on August 5, 2021, Interactive Brokers1 will begin phasing in a new margin requirement to identify the inherent risk of a portfolio concentrated in three or fewer equity positions.

New Methodology

  • Interactive Brokers will continue to calculate the potential loss for each stock (and its derivatives) by conducting the same stress tests currently in place.
  • The aggregate projected loss for the top three concentrated stocks (and their derivatives) from the above scenarios will be compared to what would otherwise be the aggregate portfolio margin requirement, and the greater of the two will be the margin requirement for the portfolio. This differs from the current approach, which considers the projected loss from two or fewer equity positions.

The increase will be implemented in a series of gradual steps over a 10-business day period, beginning after the US close on August 5, 2021, and concluding after the US close on August 19, 2021, with the increase to initial margins occurring first.

Recommended Actions

As the margin impact is portfolio-dependent, we recommend that you review the full impact to your account prior to, during and following full implementation.

To evaluate the full impact of this proposed change on your margin requirements, please see KB Article 2957: Risk Navigator: Alternative Margin Calculator and utilize the margin mode setting in Risk Navigator, select “Margin 20210820.”

Accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance. Therefore, please make necessary adjustments to your portfolio to comply with Interactive Brokers’ new policy.

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.

Margin Change — New Calculation: April 12, 2021

Effective April 12, 2021, Interactive Brokers1 will begin phasing in a new margin requirement intended to identify accounts holding a concentrated position in a stock that has has dropped precipitously from recent highs.

New Methodology

  • An alternative stress test will be run, subsequent to the margin calculation currently in place, with the greater of the two becoming the active requirement. Here, each stock and its derivatives will be subject to a stress test that simulates the effect of the underlying stock returning to its highest price level (as measured by its median price in any 5-day period) in the prior year.
  • The greatest loss for the stock and its derivatives, resulting from the above scenarios, will be compared to what would otherwise be the aggregate portfolio margin requirement, and the greater of the two will be the margin requirement for the portfolio.

In order to allow traders to adjust the portfolio and/or capital accordingly, the margin increase will be implemented in a series of gradual steps over a 5-day period, beginning after US close on Monday, April 12,2021, and concluding after the US close on Friday, April 16, 2021.

Recommended Actions

As the margin impact is portfolio-dependent, we recommend that you review the impact to the account prior to and throughout implementation and take the necessary steps to remain margin-compliant and avoid becoming subject to forced liquidations.

To evaluate the impact of this proposed change on your margin requirements, please see KB Article 2957: Risk Navigator: Alternative Margin Calculator and utilize the margin mode setting in Risk Navigator, select “Margin 20210419”.

Accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance.

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.