Brokerage/platforms terrible in Oz

nikkothescorpio said:

Steve,

So sorry but JUST TO CONFIRM - when you have a margin account and you place a trade and go to transmit the order it pops up and advises of the MARGIN IMPACT - but this doesn't mean that you're using the margin facility on the account at all?

Sorry to double check.

Cheers, Nikko

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Same answer as above. You only use margin if you don't have the cash to pay for the stock.

It will still show a margin requirement if you have a margin account. What is your main worry? Interest charges? If so, then just use the cash in your account.

Happy said:

Does it mean that first five months commission cost will be USD 10,000 ?

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This only applies to introducing brokers that take our software and distribute it under their name.

Steve-IB said:

Whats your main worry? Interest charges? If so, then just use the cash in your account.

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Not a worry as such - I just didn't want to incur interest charges on what are longer terms 'holds' if I didn't need to - as the cash is there to cover it - but it presents itself different to other margin facilities I've had with brokers - hence I was a tad confused as it was looking like it was mandatory to gear into EVERY single trade.

You've cleared it up - thank you for your professionalism.

Steve-IB, still got a few questions I would like assistance with.

1.) I opened a Family and Friend advisor account and did not realise that the WebTrader application DO NOT WORK for Multi-client advisor accounts. Is it possible to change my account setup from Family and Friend advisor to a normal individual account? I no longer have a need for a master and sub accounts, so is it possible to close the master advisor and convert the sub (my personal trading account) back to an individual?

I need this done because I was not aware of the Webtrader restriction on Family and Friend accounts.

2.) I am still unsure how the base currency used to purchase foreign shares work. If I use AUD to buy USD shares, what is IB's internal exchange rate? Will the price for the foreign share be quoted in AUD automatically in the webtrader or workstation software? Can you please give me an example on how this works? I cannot find any more details on this on the IB website.

Thank you very much for your help.

Steve or anyone,

ONE - it would REALLY help if there was a wiki or similar made on IB - I have just read all 19 odd pages and can't get the info I want and other stuff is gone over 5 times.

CAN YOU ADVISE.....I'd like to transfer all my existing holdings over to IB - I gather I use the 'Funding & Acknowledgements/Futures Transfer' form?

- Can this be scanned and emailed? If not, where to fax it to?

HIN's? - I have to register my TFN on some shares bought through IB for dividends - how do I find out what my HIN etc via IB is so that I can do this via the shares online registry eg computershare, Link etc?

And a final lame one..........what form/report is one recommended to print/save from the IB site thats the equivalent of a 'contract note'?

Thanks in advance.

Nikko

Folks, is it just me or does anyone else think that there seems to be way too many unresolved issues associated with IB setting up here.

Don't get me wrong, I would love to open an account through IB but all of these 19 pages seem to highlight deficiencies and poor planning on their introduction to the ASX which scares me off. I dont have the time or patience for so many problematic issues that should'nt exist.

If this awkward process that people seem to have to go through is an indication of things to come then maybe ASIC needs to copy the immigration dept and introduce an immigration exam for OS brokerage outfits and instead of knowing english they should have to open customer accounts with an Australian bank for starters

I know that I will probably get shot down here but really, it can't be that hard.

Mike

Hi Boggo,

I am also interested in IB, but it just seems to me to be so User UNfriendly.

After all, AFAIK all of these guys trying to set up accounts on here are experienced users of other software, most brokers can be set up via the help or it is intuitive.

From all the questions here and elsewhere, IB just seems SO complicated

I suppose it is because they cater for so many countries, markets and trade options but to see so many experienced people having difficulty just to set up an account, kind of worries me a bit.

I know they are cheap, but it would seem to me that their procedures need a reorganistaion.

It is almost like they started with a program and kept adding bits as they went along and the integration has been poorly done.

Upgrade to simplicity required Steve , also Steve, I realise it is your job to answer these questions, but you still do it well, so thanks for that.

I opened a Family and Friend advisor account and did not realise that the WebTrader application DO NOT WORK for Multi-client advisor accounts. Is it possible to change my account setup from Family and Friend advisor to a normal individual account? I no longer have a need for a master and sub accounts, so is it possible to close the master advisor and convert the sub (my personal trading account) back to an individual? I need this done because I was not aware of the Webtrader restriction on Family and Friend accounts.

IB: You will need to go through the account application for an individual account, then send a mail asking them to apply your identity and address proofs to the new account. Once open you can transfer your funds to this account.


I am still unsure how the base currency used to purchase foreign shares work. If I use AUD to buy USD shares, what is IB's internal exchange rate? Will the price for the foreign share be quoted in AUD automatically in the webtrader or workstation software? Can you please give me an example on how this works? I cannot find any more details on this on the IB website.

IB: Everything is transparent, we will not do any currency exchange for you – the big advantage of this is that we will not rip you off on an internal currency exchange. If you have an account with A$ and buy US$ shares then your US$ balance will be negative. You then have a couple of choices: you can hold this position in which you will pay debit interest on this amount (which may be partially or fully offset by the interest you receive on the long A$ balance). Alternatively, we provide the facility for you to do the currency conversion yourself – and at spreads which are comparable to the interbank market – i.e. way better than you could possibly get at yourself. As I write this the current rate for A$/US$ is 0.8888/0.8889


CAN YOU ADVISE.....I'd like to transfer all my existing holdings over to IB - I gather I use the 'Funding & Acknowledgements/Futures Transfer' form?

IB: Contact Customer service, they will send you a form. You can scan and e-mail or fax. Contact numbers are on the Help&Contacts section of the website


HIN's? - I have to register my TFN on some shares bought through IB for dividends - how do I find out what my HIN etc via IB is so that I can do this via the shares online registry eg computershare, Link etc?

IB: You will not have your own HIN. Stock is held in our custodian’s CHESS account. You will automatically receive your dividend on or within a couple of days of the pay date.


And a final lame one..........what form/report is one recommended to print/save from the IB site thats the equivalent of a 'contract note'?
IB: Your statement! You can see this on the TWS and in Account Management. There’s also trade reports and execution reports if you need something in real-time.

Folks, is it just me or does anyone else think that there seems to be way too many unresolved issues associated with IB setting up here. Don't get me wrong, I would love to open an account through IB but all of these 19 pages seem to highlight deficiencies and poor planning on their introduction to the ASX which scares me off. I dont have the time or patience for so many problematic issues that should'nt exist. If this awkward process that people seem to have to go through is an indication of things to come then maybe ASIC needs to copy the immigration dept and introduce an immigration exam for OS brokerage outfits and instead of knowing english they should have to open customer accounts with an Australian bank for starters.

IB: There have been very few problems and I don’t believe there are any unresolved issues. It’s true that we are adding bits as we go – but these are improvements. When we started we offered plain long only ASX common stocks – roughly where the thread begins – this is where many brokers start.. and stop. This is good enough for most clients, but we have been adding functionality and products as we go. Many “unresolved issues”, such as the three questions above could easily be obtained by contacting customer service.
The reason I’m here is to listen to improvements so that we can make it the best product out there. Now the product allows you to buy ASX stocks, short stock, buy/short options, option spreads and futures in Australia, North America, most of Europe, and parts of Asia. You can also do your currency management and currency trading at spreads of 1-2 pips. At the same time we’re offering one of the lowest commissions available. Our website has all this information on it, however one of the downsides is that our website has to cover so many different products, asset classes and client types that the amount of information available can be a quite overwhelming to new clients

After all, AFAIK all of these guys trying to set up accounts on here are experienced users of other software, most brokers can be set up via the help or it is intuitive. From all the questions here and elsewhere, IB just seems SO complicated
IB: If all you want to do is open an account and trade ASX stocks, then it couldn’t be simpler. You go to the website, complete an application online. Scan and e-mail your passport and driving license (or other doc). Send funds to our account at Citibank Sydney. Login to your account and trade.
If however, you want to do conditional orders, option spreads, portfolio rebalancing, basket trading, connect your charting system to read the data, obtain value-at-risk calculations, or set up the system to buy BHP at 3pm next week, but only if the Nikkei goes above 18,000, and the A$ is under 0.86, and you want to ensure that when it’s filled the system plays your favourite song and sends an e-mail to your wife (which you could do this order if you wanted)… then there’s a learning curve, and you’ll need to familiarize yourself with the user manual, or practice in your paper trading account, or call customer service.


Hope that helps.

macca said:

Hi Boggo,

I am also interested in IB, but it just seems to me to be so User UNfriendly.

After all, AFAIK all of these guys trying to set up accounts on here are experienced users of other software, most brokers can be set up via the help or it is intuitive.

From all the questions here and elsewhere, IB just seems SO complicated

I suppose it is because they cater for so many countries, markets and trade options but to see so many experienced people having difficulty just to set up an account, kind of worries me a bit.

I know they are cheap, but it would seem to me that their procedures need a reorganistaion.

It is almost like they started with a program and kept adding bits as they went along and the integration has been poorly done.

Upgrade to simplicity required Steve , also Steve, I realise it is your job to answer these questions, but you still do it well, so thanks for that.

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You get what you pay for, I've gone with BrokerOne and I have a real live person who is one point of contact on my account and help is at hand when I need it rather than trying to go through any online webchat thing with people that can barely understand english.

IB do have a great offering at an excellent price but its like a no frills airline, and as any frequent user of these knows, you cannot expect the same standard of customer service if you are paying so much less.

Steve-IB said:

IB: If all you want to do is open an account and trade ASX stocks, then it couldn’t be simpler. You go to the website, complete an application online. Scan and e-mail your passport and driving license (or other doc). Send funds to our account at Citibank Sydney. Login to your account and trade.
If however, you want to do conditional orders, option spreads, portfolio rebalancing, basket trading, connect your charting system to read the data, obtain value-at-risk calculations, or set up the system to buy BHP at 3pm next week, but only if the Nikkei goes above 18,000, and the A$ is under 0.86, and you want to ensure that when it’s filled the system plays your favourite song and sends an e-mail to your wife (which you could do this order if you wanted)… then there’s a learning curve, and you’ll need to familiarize yourself with the user manual, or practice in your paper trading account, or call customer service.

Hope that helps.

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Good to see you haven't lost your sense of humour :
I agree: setting up the basic account and transferring in the money was dead easy.
If/when the Webtrader platform improves and doesn't drop out in the middle of our trading day I'll be happy as Larry. Now I'm gonna read up on how to let it play my favourite song when my stocks go up.

QUOTE: HIN's? - I have to register my TFN on some shares bought through IB for dividends - how do I find out what my HIN etc via IB is so that I can do this via the shares online registry eg computershare, Link etc?

IB: You will not have your own HIN. Stock is held in our custodian’s CHESS account. You will automatically receive your dividend on or within a couple of days of the pay date.
------------

This is a minor bummer as forces one to have to use the paperwork option to enter your TFN, email address, annual report pref's etc etc.

Surprised there's not some way around this to link the ownership via the register - but oh well.

Boggo said:

Folks, is it just me or does anyone else think that there seems to be way too many unresolved issues associated with IB setting up here.

Don't get me wrong, I would love to open an account through IB but all of these 19 pages seem to highlight deficiencies and poor planning on their introduction to the ASX which scares me off. I dont have the time or patience for so many problematic issues that should'nt exist.

If this awkward process that people seem to have to go through is an indication of things to come then maybe ASIC needs to copy the immigration dept and introduce an immigration exam for OS brokerage outfits and instead of knowing english they should have to open customer accounts with an Australian bank for starters

I know that I will probably get shot down here but really, it can't be that hard.

Mike

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It's not that hard.

Dunno why others have had quite a few problems with them- opening an account for me last year was quite simple and straight forward. I'm not sure what it is with IB- if you go and have a look at elitetrader.com, it would seem they have quite a few problems with U.S customers too. What you may actually find to be more accurate, is because people like Steve and other CS reps from IB show up on public forums to answer questions, it draws out every unhappy customer they have ever had to question the way they do things.

Could anyone else imagine if comsec or Etrade had a rep posting on here? The thread would be bedlam everytime the U.S have a big down day and their site goes down(a problem I can thankfully say I've never had with IB).

Steve or anyone,

As you stated when we buy ASX listed shares through IB, we don't have our own HIN's and instead the holdings are listed under the central chess holding that IB has.

I assume this doesn't cause any problems with getting TFN's advised, dividend reinvestment plans etc via paperwork mailed out by the companies with holdings in?

For as we have no HIN, we can't do this online - so its vital we get that paperwork.

Thanks in advance, Nikko

nikkothescorpio said:

Steve or anyone,

As you stated when we buy ASX listed shares through IB, we don't have our own HIN's and instead the holdings are listed under the central chess holding that IB has.

I assume this doesn't cause any problems with getting TFN's advised, dividend reinvestment plans etc via paperwork mailed out by the companies with holdings in?

For as we have no HIN, we can't do this online - so its vital we get that paperwork.

Thanks in advance, Nikko

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We will process corporate actions automatically, and you will see these appear on your statement.

For elective corporate actions, usually the only paperwork you will need to do is send a ticket, saying "please subsribe me to the rights on XYZ", or similar.

However, you will need to keep track of elective corporate actions on your own stocks, and shouldn't rely on us informing you.

Having read much of this thread, I must say that I can't agree with the title.

The main platforms here are web-based 24-hours a day (no "For now, the best you can do is use the telephone during the webtrader shutdown."), can deposit and withdraw funds automatically from your bank account, and give you your own HIN, allowing you to administer TFN, financial report options, etc on registry web sites.

The amount of time cost and inconvenience caused by using IB would, in my opinion, be far greater than the savings.

1. I am wanting to transfer my shares from ComSec to IB. I have the documentation from IB. Where do I send it, all of it to IB or to ComSec?

2. I have a cancelled buy on my main screen of TWS. I use the delete key to delete the line but on starting TWS the next time the cancelled buy is still there. How do I permanently get rid of it?

Many thanks in advance.

oldpos said:

1. I am wanting to transfer my shares from ComSec to IB. I have the documentation from IB. Where do I send it, all of it to IB or to ComSec?

2. I have a cancelled buy on my main screen of TWS. I use the delete key to delete the line but on starting TWS the next time the cancelled buy is still there. How do I permanently get rid of it?

Many thanks in advance.

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1. There should be instructions on the form. You can send it to help at interactivebrokers dot com or fax it to us - use the numbers on the Help&Contacts page of our website.

2. If the order was confirmed cancelled, it should turn red and drop off the screen. If it's pink, then you should contact the CS desk immediately to verify the status of the order. If it's red then it's cancelled but you have your settings set to keep the order on the screen.

Kremmen said:

Having read much of this thread, I must say that I can't agree with the title.

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kremmen, you`re entitled to your opinion.

however I still stand by the title of this thread.

do you think that the platforms are so great in Oz with just limit and market orders and the odd one with stop loss orders?
when I place an order for a low priced stock, a representative of the Ozzie broker got to look at the order because of an inbuilt filter. my orders were sitting there for hours on February 28th, while I`m sweating behind my computer. what a sigh of relief to see IB coming in with an excellent platform (I use TWS).

and is the brokerage so great in Oz? the minimum with brokers like Comsec or Westpac Broking is $ 20-25 (for stop loss you pay another $10-15) and with IB only $6 all-in.
reckon I will pay 7.5k brokerage this year instead of my usual 15k.

apart from platform and brokerage there will always be some issues and if you look at these forums, the other brokers also have their fair share of critics.

but once you know all the channels at IB, you`ll be alright.
I have my deposits and withdrawals the next day.

ah well we all have different things that are important to us
and I`m very happy with IB.

ta2693 said:

When IB can trade corporation option like CFEO, MRUO?
Thank you Steve.

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yes Steve, I`m in the same boat as ta.

I trade the liquid issues like AEXO, CFRO, PNOOA, etc.

got about 200k in company options and would love to give my Ozzie broker the boot and trade with IB 100%.

Steve, I hope you can arrange this.

thanks.

Steve-IB,

It's been over a week or two since I got my account approved, and I still CANNOT login to Trader Workstation 4.0. It gives me the invalid login/username.

As I mentioned, I have opened a Family and Friend advisory account. I deposited money into Master account and later transferred the sum to the Sub Personal Trading account. Account Management show that client trading permission is "ENABLED" and that the fund is READY. Both accounts should have been approved a long time ago.

I am trying to login to the software using the same username and password I used to access my account management. (The sub personal trading account) Though I tried it with both different username and passwords.

I have already raised a ticket but support has not got back to me for days now.

What is going on?? I need to trade now so please look into this for me ASAP!

And I'm pretty sure I typed in the correct username and password, unless there is a seperate login information for webtrader or TWS. But I don't see it anywhere...nor received them...

Thank you.