Brokerage/platforms terrible in Oz

[apra143]

Interactive Brokers questions

I have just started learning about trading (paper trading and ASX share market game), so I realise that IB isn't targeted for someone like myself and won't bother trying opening an account (minimum 100 trades required). Anyway, had a few questions:

1. Has anyone tried entering ASX securities using the TWS Demo? Doesn't seem to work for me. Will it be updated soon?

2. Where exactly are all funds that aren't currently invested held? Any holding charges/fees? Typical transaction costs (deposit/withdrawls) within the account?

3. When it states: "A minimum equity deposit in cash or stock of USD 5,000 (or USD equivalent)." What happens if account falls below that level?

4. Are we required to elect IB as our CHESS sponsor? How does this aspect work?

5. Is all useful and easy to read tax information available to users?

6. Any minimum contract terms required on signup?

Cheers.

 

[xtanda]

Re: Interactive Brokers Questions

I did not realize that my trading account had something to do with IB until I saw the heading of the monthly report. I think there is no minimum trading requirement ( I could be wrong since I did make average about 10 trades per months for the last 6 months). The brokerage is $10 (Aus stock, $US10 for US stock).. not bad..

My point is: you don't need to involve directly with IB, you can deal with one of their reseller.... My broker is www.spectrumlive.com - subsidiary of tricom

 

[apra143]

Re: Interactive Brokers Questions

I did not realize that my trading account had something to do with IB until I saw the heading of the monthly report. I think there is no minimum trading requirement ( I could be wrong since I did make average about 10 trades per months for the last 6 months). The brokerage is $10 (Aus stock, $US10 for US stock).. not bad..

My point is: you don't need to involve directly with IB, you can deal with one of their reseller.... My broker is www.spectrumlive.com - subsidiary of tricom

Is there any benefit of using spectrum live over IB?

 

[Sir Burr]

Re: Interactive Brokers Questions

Is there any benefit of using spectrum live over IB?

Spectrum:-
Brokerage 0.2% $30min
Fees $0

IB:-
Brokerage 0.08% $6min
Fees $37.50min/month

Looks like Spectrum includes live data and is Aussie based.

 

[apra143]

Re: Interactive Brokers Questions

Spectrum:-
IB:-
Brokerage 0.08% $6min
Fees $37.50min/month

Sorry, what does the "$37.50min/month" refer to? Are the following examples correct:

If I don't trade at all in September, I loose $37.50 in IB fees?

If I only traded $500 worth of shares in December, I'd be charged $0.40 brokerage plus $37.50 in IB fees?

 

[Sir Burr]

Re: Interactive Brokers Questions

what does the "$37.50min/month" refer to?

http://individuals.interactivebrokers.com/en/accounts/fees/marketData.php?ib_entity=llc

Look under Asia-Pacific

I'd be charged $0.40 brokerage

No, the minimum $6.

 

[Sir Burr]

Re: Interactive Brokers questions

BTW if you don't want the data your let off those fees.

Check this thread out:
https://www.aussiestockforums.com/forums/showthread.php?t=7303

 

[sails]

Hi Steve - combos are working today Have put an order through and it's all working well. Love the straight through processing - that is a real treat for Aus options!

It appears that there are no greeks for Aus options in Option Trader. Is this on the cards for some future date? No rush as I can continue to get these from elsewhere, just would be handy to have them available.

Thanks again for your help!

 

[Steve-IB]

Hi Steve - combos are working today Have put an order through and it's all working well. Love the straight through processing - that is a real treat for Aus options!

It appears that there are no greeks for Aus options in Option Trader. Is this on the cards for some future date? No rush as I can continue to get these from elsewhere, just would be handy to have them available.

Thanks again for your help!

Greeks - yes, working on it but maybe a couple of months.

 

[rub92me]

It would be interesting to know how many have switched to IB, someone thats got a little time could start a pole...or i could start one tonite.

Cheers,

Finally got off my lazy behind and opened an account with IB and will try it out. If it's better than Etrade (how hard can that be) then I'll be transferring all my holdings. Boy, do I look forward to life without Etrade!

 

[xtanda]

Re: Interactive Brokers questions

If you can get referral, Spectrum only charge $10 brokerage (VIP rate)... not bad...
I got the referral from my CFD education institution...

 

[chops_a_must]

Does anyone know the proper number for the Hong Kong desk?

I've tried all the numbers I can find, and none seem to work.

 

[Trembling Hand]

Does anyone know the proper number for the Hong Kong desk?

I've tried all the numbers I can find, and none seem to work.

Try Sydney you get transferred to HK 02 9240 5143

HK that I have is 852 2156 7907

 

[Steve-IB]

Does anyone know the proper number for the Hong Kong desk?

I've tried all the numbers I can find, and none seem to work.

Please look on the website under Help&Contacts. There is a comprehensive list of numbers and also tips on how to get the best service.

 

[CanOz]

Finally got off my lazy behind and opened an account with IB and will try it out. If it's better than Etrade (how hard can that be) then I'll be transferring all my holdings. Boy, do I look forward to life without Etrade!

I'm still with Etrade too, but only a small portion of my capital. I am still trying out IB, but i can tell you i'm having some fun with the simulator! I only wish i had more time to play....

The order entry tickets are perfect. If they had decent charts, it would be an awesome platform, as it is the charts are ok once you get used to them, but i always have Amibroker running too.

I really think it will only be a matter of a few weeks until all my capital is with IB.

Cheers,

 

[somebodyhere]

Hi

Got a few questions here.

Do you need to pay for the market data, or can you turn it off? How do you turn it off?
Is it free if you spend a certain amount in brokerage?

Is it free to transfer your shares (from another broker) AFTER you've opened the account?

What's the current minimum deposit in AUD?
Can it be from shares and not cash?

Sorry if its been answered before.

 

[Steve-IB]

Hi
1 Do you need to pay for the market data, or can you turn it off? How do you turn it off?

2 Is it free to transfer your shares (from another broker) AFTER you've opened the account?

3 What's the current minimum deposit in AUD?
4 Can it be from shares and not cash?

Sorry if its been answered before.

1. By default you do not get data. You need to subscribe and pay - it's $37.50 per month and is passed directly to the exchange, i.e. we make nothing on it.

2. Yes

3. $6,000

4. Yes

 

[somebodyhere]

Thanks for the quick reply.

Just to quote from a previous question,
"1. About the interest charged on the account. I understand that interest is only paid if the account is over 13k in value, inclusive of stocks. Does this mean, say for example the portfolio in the account is worth 10k, and 5k in cash totalling 15k all up, that interest is paid on the 2k in cash over 13k, the entire 15k, or the 5k in cash?"
"1. 2k"
I guess the 10k portfolio is fully paid (not on margin)?

Also with regards to margin, what's the difference between "Real-time Initial and Maintenance Margin Requirement" and "Overnight Reg T Initial Requirement"? I see an initial requirement of 50% with Reg T and 25% with Real-time.

Let's say I buy 10k shares today, with 5k cash (and 5k margin loan). Is the interest 7.938% x $5000? Also, what's the BM + 1.5% on the website?
If tomorrow the shares drop 10% so they're now only worth 9k, how is the interest calculated?

On the Margin Overview page on your website, there is something that says "Securities available funds = Securities equity with loan value - Securities initial margin requirement." In my example above, is the "Securities equity with loan value" $9000, $5000 originally paid, or 75% x $9000?

How strict are you in liquidating positions? How many $ or % defficiency until you actually start liquidating?

Is your platform Java based or something you need to install first? Can you trade via the web?

 

[rub92me]

Ok, let me try to ask the question again in this thread:

Starting to look at IB as a replacement for Etrade, however my first observation on the market data that I see through the IB Webtrader doesn't fill me with confidence.
E.g. as at 10:43am today IB is showing that no trades have taken place on FAR with price still at 0.125, while Etrade (and ASX) is telling me that 100,000 was traded at the open for 0.13.
And in general volumes traded showing in IB Webtrader are far below what Etrade is telling me!
Anyone experiencing a similar thing or able to provide an explanation for this?

 

[sails]

Assuming you are only holding Australian products. There will be a 10 minute window before IB will act, i.e. we will attempt to reduce positions at 10.10am.
In the account window you can select those positions which you would like to "Liquidate Last".

Hi Steve,

While the IB platform is great for trading options, I am somewhat hesitant to start moving most of my option trading to IB due to the tiny window of opportunity to deal with exercise/assignment when there are insufficient funds in the account. As it takes up to 10:10 am for ASX stocks to commence trading for the day, it would be cutting it pretty fine with only a 10 min window.

Also, while margin issues are understandably IB’s main concern, the customer may need to sell or hedge a covering long option (if too much extrinsic value to exercise) at the same time as closing the stock position. Even on our most liquid optionable stock, our MMs rarely start quoting much before 10.20am and during more volatile conditions it can be as late as 10:45 -10:50am.

Although it’s easy to request a quote through TWS, experience shows if the MMs are holding back their quotes due to nervousness with opening volatility, it can be more difficult to get a reasonable fill.

So, on the basis of this oppening lag in the Aus market and option quotes being slow to come on line, would IB consider allowing a bit longer than 10 mins, possibly even up to the first hour, so that one has the ability to simultaneously execute any option positions while unwinding the stock position as explained above?

Thanks again

Margaret