Interactive Brokers

Interactive Brokers can DRS shares.

Specifics for Interactive Brokers

Interactive Brokers charges a $5(US) fee for each DRS transfer. This means each time you want to direct register shares of a specific stock (no matter how many shares) you are charged $5(US). You will need to make sure you have $5(US) settled in your account before you can transfer.

DISCLAIMER: If you deposit money into IBKR using a “Direct ACH Transfer”, then IBKR may hold on to any purchased shares for up to 44 days before you can direct register them. If you do a “Bank Wire” transfer there is a small fee, but you can direct register your shares 3 days after purchase.

How to get the $5

When your money arrives with IBKR it will be in your local currency. To convert it to US Dollars you need to:

• Click on “Trade” on the menu bar and select “Convert Currency”.
• A pop up will ask you what currency you want converted (your local currency), and what currency you want to convert to (USD).
• Once you have filled out the boxes click on submit and your money will have converted instantly.
• You now need to wait 3 days for the USD to settle before you can transfer. You can purchase more shares with the USD immediately, but for transfers you have to wait for the cash to settle.

Optional: Tax Cost Basis

You can select if you'd like your shares transferred as “First In, First Out” (newest shares transfer first) or “Last In First Out”(oldest shares transfer first). To do this:

• Click on “Performance & Reports” from the top menu, and select “Tax Documents”.
• Underneath “Tax Optimizer” you will find an “Account Match Method” drop down list.
• First In, First Out is selected as default (newest shares transfer first), but you can switch to Last in, First Out (oldest shares transfer first). There are several other options, but these are the main two to concern yourself with.

If you transferred shares into IBKR, check your cost basis

Often shares transferred to IBKR are missing their cost basis. It is worth double checking your cost basis is recorded properly before you start your transfer from IBKR. (Please note: IBKR have a column called cost basis on your portfolio page. If you have transferred your shares to IBKR, please ignore this cost basis, as it is not the actual cost basis of your shares). You can find your cost basis by looking at your account statements, activity statements, or contract notes from the broker you purchased the shares with.

• To update your cost basis in IBKR click on “Performance & Reports” from the top menu and select “Tax Documents”.
• At the bottom of the page you will find the “Cost Basis” Section.
• Click on the cog-wheel icon next to “Position Transfer”.
• On the next page select the transfer from the drop down menu (labeled by the date of the transfer).
• A table will appear with the quantity of shares you transferred.
• To fill it out, you need to click on the “Add Lot” button.
• Here you can break down the batch of shares into the batches you ordered them in. (For example, 10 shares might have been bought in 2 lots of 5).
• If you are unsure about which shares you transferred, all share transfers are marked as First In, First Out by default. This means the newest shares transfer first.
• To fill out each lot you will provide the quantity of shares you purchased, the date you purchased those shares, and the total cost of those shares (be sure to remove any trading fees you paid).
• Once you have added enough lots to make up for the total amount of shares, you can click on “Continue” to submit the cost basis.
• Please note, even with this in place, the transfer agent may not receive your cost basis. Your best bet is to keep a hold of your records showing your cost basis. It will make things a lot smoother when it comes to tax return time.​

How to Transfer:

Once your shares and $5 are settled in IBKR:

• Login, and click on “Transfer & Pay” from the top menu and select “Transfer Positions”.
• On the next page select “Outgoing”.
• On the next page select “United Sates” from the drop down menu.
• On the next page select the option “Deliver Shares to the Issuer's Transfer Agent/Registrar”.
• IBKR has now streamlined the next part. For some issuers, you will not have to enter the Transfer Agent's info as IBKR already has it. Otherwise, consult our issuer-specific data below.
• You are shown the name the shares will be direct registered in (same as your IBKR account name). This, along with your address is the only info needed to set up your account with the transfer agent. The rest you provide once it's opened.
• You can leave the Tax Identification Number alone (you will give this to the transfer agent later).
• Select which stock you'd like to transfer, and how many shares you'd like to transfer.
• Click “Continue”.
• On the next page you'll see a summary of the transfer and IBKR asks you to sign your name (simply type your name to match what it says on the screen).
• You will then be asked to provide your login details again as authorization. If you have 2FA activated then you will need to authorize through that as well.
• Once you have done that and clicked “Submit” IBKR will review your transfer request. This takes about a day.​​

After you have submitted the transfer request, IBKR will not contact you when the status of your transfer updates, even if it fails. To check in on your transfer you can login, click on “Transfer & Pay” from the top menu, and select “Transaction Status & History”.