Brokerage/platforms terrible in Oz

[Aussiejeff]

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.

I'll second that gfresh!

One important question though before I seriously look at their platform - has anyone had any probs using IB for intra-day trading? (ie any lags in processing intr-day BUY/SELL orders that might catch you out big time?) Or is it best used for longer term hold positions?

AJ

 

[porkpie324]

Have read the above post's with interest, I to was concerned about brokerage costs which is why I now use CFDs. CFD brokerage is about one third of normal brokerage, its made a big difference to my bottom line even with allowing for interest on open positions.porkpie

 

[auric]

Here is the link to the commision charges. It looks as if asx is going to be available which is only good for oz: http://www.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc

 

[professor_frink]

I'll second that gfresh!

One important question though before I seriously look at their platform - has anyone had any probs using IB for intra-day trading? (ie any lags in processing intr-day BUY/SELL orders that might catch you out big time?) Or is it best used for longer term hold positions?

AJ

No probs for me- they are great for daytrading

 

[yonnie]

excellent news prof........am going to transfer a few ozzie dollars their way........thanks for the update

 

[boxon]

Why dont you try traderdealer for Aussie stocks they are $33 up to $200000.You can also short with them.

 

[yonnie]

Why dont you try traderdealer for Aussie stocks they are $33 up to $200000.You can also short with them.

I actually have an account with them, but found out that they charge $33 per trade.
I trade penny stocks and often a $ 20,000 order will be filled in 2 or 3 days so an order could cost me $ 99 or higher.
Now I can do lower value orders of say $ 10,000 at 4 cents and another one at 3.8 cents and I pay totally 16 bucks for those 2 orders.

For people trading say $ 5,000 a pop, IB is a godsend with $6 brokerage.

IB will change the broker landscape!

Sorry, no traderdealer for me

and you wont find a better platform than IB`s.

thank you IB

 

[macca]

Do we still have to deal with IB from OS or are they going to have an agent / office in Australia ?

Pain in the B... opening accounts OS, what with ID theft I am nervous about sending ID overseas.

 

[yonnie]

Do we still have to deal with IB from OS or are they going to have an agent / office in Australia ?

Pain in the B... opening accounts OS, what with ID theft I am nervous about sending ID overseas.

dont worry macca, I dont think people would steal the mail bag for your ID. would be far easier for those people to open your mailbox at home

 

[Aussiejeff]

I wonder if can transfer my whole Commsuck ASX share portfolio across to IB without penalty? IB's home page info shows that is no problem with US trading houses, but what about AUS>US? (Looks like a call to Commsuck is in order on Monday as their website gives nothing away as far as transferring an account to another trading house!)

I think IB had (or still has?) an Oz trading agent called "Timber Hill"? Can't find any good Google links to that business though....

AJ

 

[yonnie]

I wonder if can transfer my whole Commsuck ASX share portfolio across to IB without penalty? IB's home page info shows that is no problem with US trading houses, but what about AUS>US? (Looks like a call to Commsuck is in order on Monday as their website gives nothing away as far as transferring an account to another trading house!)

I think IB had (or still has?) an Oz trading agent called "Timber Hill"? Can't find any good Google links to that business though....

AJ

You better contact IB if transfer is possible........I have transferred shares from Comsec to other brokers before
but not to IB.

IB is so cheap because they have everything as computerised as possible and it also means their system is rigid, so to do it through Timber Hill wont be possible.

It also means their customer service is awful, because good customer service costs money.

So if you are a beginning share trader, IB might not be an option, unless you dont need a lot of help.

 

[Aussiejeff]

You better contact IB if transfer is possible........I have transferred shares from Comsec to other brokers before
but not to IB.

IB is so cheap because they have everything as computerised as possible and it also means their system is rigid, so to do it through Timber Hill wont be possible.

It also means their customer service is awful, because good customer service costs money.

So if you are a beginning share trader, IB might not be an option, unless you dont need a lot of help.

I've been margin trading for about 3 years, mainly in 20c-$2 stocks, so although I am a relative beginner (always learning) I think IB looks ok. I've downloaded their trading software demos and the content looks pretty impressive. As long as there is no hassle getting the C-suck stock transferred, I'll likely open an account with them. If I've learnt one BIG lesson so far, C-Suk commissions are a killer over a financial year when you are mainly trading in the $1,000-$3,000 per trade range in the small to medium caps!

I estimate if I had been able to use IB in the financial year just ended, it would have saved me AT LEAST $5,000 in commissions!!!! *SPEW*

Fingers crossed then....

AJ

 

[Aussiejeff]

*Update*

Just checked back on IB's website. The ASX is now listed under their stock trading products pages!

AJ

 

[R0n1n]

I have been eyeing the US market. A few questions for the experienced ..

1. Can you trade CFD's with IB like we do here in Oz with IGmarkets ?
2. Given the above info, I take it that we can trade botx ASX and other us markets from the same account with IB.
3. Are there any minimum amount required to open the account ?
4. Any gotchas ??

 

[yonnie]

hi ronin,

1. no cfd`s with IB - its not allowed in the US

2. you can trade stocks/etf`s in US, GB, Europe, Japan, Oz, Canada etc.
futures on currencies, commodities, stock market indexes etc.
options etc. etc.
all from the 1 account

3. cant remember the minimum amount, but look on their website

4. no gotcha`s, apart from their customer service being terrible

if you like to know what other traders are saying bout IB,
go to elitetrader.com

 

[yonnie]

hi aussiejeff,

margin trading 20c shares.....how do you do that?

 

[R0n1n]

Hi yonnie,

thanx a lot for the super quick answers.

yeah if somebody could explain "margin trading 20c shares....."

Also you are allowed to short shares, am I right ?

 

[Damuzzdu]

A few quick questions:

1. Can you trade with or without margin (ie CFD's) and what (if) any are the LVR's of each stock. I've looked on IB website, and it doesn't really say.

2. Does anyone know is IB a DMA model, and what about the trading platform, is it stable.

3. Does any one know whether you can trade in the opening and closing auctions? Platforms like CMC do not let you, which sucks.

4. If the IB customer service is terrible as I have been reading what if you have problem with a trade or the software, where do you go?

Thanks to all for the info on this thread. $6.00 sounds good, is there any catch???? :dance:

Cheers
Muzz

 

[professor_frink]

A few quick questions:

1. Can you trade with or without margin (ie CFD's) and what (if) any are the LVR's of each stock. I've looked on IB website, and it doesn't really say.

2. Does anyone know is IB a DMA model, and what about the trading platform, is it stable.

3. Does any one know whether you can trade in the opening and closing auctions? Platforms like CMC do not let you, which sucks.

4. If the IB customer service is terrible as I have been reading what if you have problem with a trade or the software, where do you go?

Thanks to all for the info on this thread. $6.00 sounds good, is there any catch???? :dance:

Cheers
Muzz

Muzz,

they aren't a cfd provider, they are a broker.

Trading platform is stable and reliable.

Honestly haven't had to deal with IB's customer service in the near on year that I've been using them, so I can't comment on 4 yet.

 

[professor_frink]

Hi yonnie,

thanx a lot for the super quick answers.

yeah if somebody could explain "margin trading 20c shares....."

Also you are allowed to short shares, am I right ?

They haven't got a short list at this stage. I'll be trying to get in contact with them next week to find out if they will be offering a short list. Will let everyone know what they say