Brokerage/platforms terrible in Oz

[yonnie]

hi folks,

dont know if you ever traded internationally?

I trade in the US as well and with Interactive Brokers I pay 1/2 cent for the higher priced companies.
So you buy 1,000 shares @ $ 50 each = $ 50,000 for the pricely sum of $ 5 in brokerage.
Their platform is state of the art with life quotes and more than 30 different order types.
You pay no platform/quotes fees.

For lower priced equities Choicetrade is a good choice @ $5
a pop, no matter the value of your order (1 million is still $5)

And we come down to Oz.

Brokerage is around $ 25, but only up to say $ 25,000 per order. And do you want our latest sophisticated tool, the stop loss? That`s only an extra $10-$15 thank you.

Lets not talk about the platform - basic, basic, basic.
I got to be behind my computer most of the time, because there`s nothing serious to protect my trades.

At IB I could place a buy order, a stop loss order and a trailing stop all in the one - set and forget.
And I didn`t have to pay any extra for that.

Wonder how we can shake up those buggers

 

[professor_frink]

hi folks,

dont know if you ever traded internationally?

I trade in the US as well and with Interactive Brokers I pay 1/2 cent for the higher priced companies.
So you buy 1,000 shares @ $ 50 each = $ 50,000 for the pricely sum of $ 5 in brokerage.
Their platform is state of the art with life quotes and more than 30 different order types.
You pay no platform/quotes fees.

For lower priced equities Choicetrade is a good choice @ $5
a pop, no matter the value of your order (1 million is still $5)

And we come down to Oz.

Brokerage is around $ 25, but only up to say $ 25,000 per order. And do you want our latest sophisticated tool, the stop loss? That`s only an extra $10-$15 thank you.

Lets not talk about the platform - basic, basic, basic.
I got to be behind my computer most of the time, because there`s nothing serious to protect my trades.

At IB I could place a buy order, a stop loss order and a trailing stop all in the one - set and forget.
And I didn`t have to pay any extra for that.

Wonder how we can shake up those buggers

Read on another messageboard recently that IB are only a couple of weeks away from offerring the ASX. That will solve the platform problem

It will be interesting to see what they can offer in regards to brokerage.

 

[It's Snake Pliskin]

For a while I have been pissed off with the Aussie rip off merchants. the public does nothing tho demand better service other thatn whinge.

Maybe I should start my own brokerage and offer what the others don't.

Watch the business come quickly.

Any idea what start up costs would be? I have thought about this before.

 

[yonnie]

snake, to start up your own brokerage business is another headache altogether........

you would need a licence etc.

might be better to buy out an existing small outfit and get the best platform available and a good service to the public.

 

[yonnie]

professor,

IB is not good for small caps trading and thats what I`m doing.
they trade in GB, Europe and Japan, but mostly in the main stocks.

I`ll certainly have a look. Brokerage probably between 0.1-0.2%.

 

[professor_frink]

professor,

IB is not good for small caps trading and thats what I`m doing.
they trade in GB, Europe and Japan, but mostly in the main stocks.

I`ll certainly have a look. Brokerage probably between 0.1-0.2%.

Why would they be any different(small vs big caps)?

Or are you saying they won't offer all of the ASX?

 

[yonnie]

yes, they would probably not offer all the 2000+ stocks on the ASX.

In GB they dont offer the AIM shares for instance.
Those are traded on a different platform than the shares on the main board of the LSE, so who knows IB might still let us trade all the ASX stocks.

 

[professor_frink]

yes, they would probably not offer all the 2000+ stocks on the ASX.

In GB they dont offer the AIM shares for instance.
Those are traded on a different platform than the shares on the main board of the LSE, so who knows IB might still let us trade all the ASX stocks.

yeah, AIM has 2 different systems, that's why they don't offer all of the shares. The ASX doesn't have this kind of setup, so hopefully they will offer the whole market(hopefully)

 

[yonnie]

we`ll still have to pay IB for data, because the ASX will charge IB for data and IB will charge us.

luckily I dont need constant updates and Comsec is good enough

 

[Chorlton]

For a while I have been pissed off with the Aussie rip off merchants. the public does nothing tho demand better service other thatn whinge.QUOTE]

Maybe we should vote with our feet, Snake

 

[disarray]

unfortunately when it comes to technology australia is a backwater hick town. i drove through rice paddies in rural japan with better net access than the rubbish we have here. my foreign gaming mates laugh at how primitive and expensive our crappy technology is.

and snake, to start your own brokerage firm are you looking at phone or internet? offering any other services? you'll need phone lines, fat internet pipes, servers with live data feeds, financial licensing, and professional indemnity insurance out the a$$. not a cheap undertaking by any stretch of the imagination. if you were serious perhaps start as a small, boutique phone broking firm working a niche and expand from there.

 

[Boyou]

Hey guys,

Can any of you say "Economies Of Scale"?

Then work out the U.S Market and compare it to Aus.

Seems simple to me and I'm not even a trader!

Cheers Ya'll

 

[silence]

Can you post a link to any discussion about IB coming to Oz?
Sounds interesting.

 

[professor_frink]

http://www.elitetrader.com/vb/showthread.php?s=&threadid=96824

Dunno what's going on with it- spoke to someone from IB last night and they said they don't have a timetable for the launch, yet one of their reps is saying in the link above it's coming very soon

 

[yonnie]

ah well professor, IB was never the one with good customer service - hopefully the guy you talked to was hopelessly uninformed

 

[professor_frink]

It's done. IB are now offering the ASX
Brokerage is 0.08% of trade value or a minimum of $6 per trade.

Live data feed is $37.50 a month to subscribe.

 

[bingk6]

It's done. IB are now offering the ASX
Brokerage is 0.08% of trade value or a minimum of $6 per trade.

Live data feed is $37.50 a month to subscribe.

Thanks Prof,

Now thats going to shake things up a bit. Those rates are excellent by any measure. Any links for more details ?

 

[professor_frink]

Thanks Prof,

Now thats going to shake things up a bit. Those rates are excellent by any measure. Any links for more details ?

http://www.interactivebrokers.com/en/main.php

Under fees/commissions/stocks it has the comm details.

The rates have only been put up on their website today, so there isn't much more information at this stage. The ASX isn't showing up as an available exchange on the public site yet, but is showing on my account management page. Might have to wait and see if the site is updated over the weekend to get some more information.

 

[gfresh]

Can any of you say "Economies Of Scale"?
Then work out the U.S Market and compare it to Aus.

True.. however you could also argue, cheaper trades = more trades = same amount of revenue at the end of the day..

For the amateur investor, a reduction in brokerage would be fantastic.. and could say push 5% returns into 10% returns, 10% returns into 15% on small amounts.

At the moment, if you want to trade a relatively small amount (say $1000), it's $60 in and out with commsec, never mind if you want to set stops, etc. That means you need a 6% return before you've even turned a profit (yes my maths is fantastic )..

Any increased competition is great IMO. We all know our banks are not the best when it comes to offering best value.

 

[Aussiejeff]

Hi Prof.

You seem to be implying that the ASX stocks are now available to trade through IB?

Yet, when I looked at IB's new accounts/product listings today, they only show the Sydney Futures Exchange and Options as being currently available - NOT the ASX. Am I missing something on their web-pages or will the ASX stocks be an inclusion in the near future, but not right now?

Cheers,

AJ

PS: Haha! Your latest post just answered that one..... hopefully it will show up SOON. These OZ commissions are a joke.. oops - I shouldn't say that. Lil Johnny reckons we live in the lucky country and we will *soon* have vewwy vewwy fast bwoadband - whatever that is!!