Brokerage/platforms terrible in Oz

[sails]

I'd rather wait until we launch before we disclose the ETO commissions - but it will be very competitive - at least compared to the rates that I've seen available in the market. You'll be able to chart the underlying and will be able to see the greeks. I anticipate being able to launch in August.
(fyi.. we currently execute around 19% of US ETO volume)

Sounds great, Steve - will look forward to more info over the next few weeks!

Thanks Wayne - that setup looks good. Will be great if it works just as well with Aus options!

 

[nizar]

Hi Steve,

Will IB be offering brokerage services for the ASX and if so, when?
ALso will the commissions be a flat fee (upto a certain amount) or a % or dependant on the size of the trade (like for the US market) ?

Thanks.

 

[wayneL]

Hi Steve,

Will IB be offering brokerage services for the ASX and if so, when?
ALso will the commissions be a flat fee (upto a certain amount) or a % or dependant on the size of the trade (like for the US market) ?

Thanks.

Nizar,

It's all in this thread above.

Cheers

 

[Aussiejeff]

AJ - Please can you send a copy of the transfer form to me. I haven't trained anyone on what to do with this yet! I'm open to all suggestions on add-ons that anyone here thinks maybe useful. Once we have launched the short stock and stock options, we'll spend some time focussing on "add-ons".

Wayne
"Grain, NYMEX, NYBOT options?"
I believe these are still predominantly pit traded.

Haha! Ok Steve, sent docs across to you via e-mail now.

AJ

 

[yonnie]

Steve,

Obviously the account opening process is not geared towards the Australian way of doing things.

While opening an account for my Australian self managed superfund some differences cropped up:

To open a margin account I have to prove that the exact wording in my trust deed allows trading on margin.

Now in Australia we dont have trading where for each trade I supply 50% initial margin and there are maintenance margins, so there are no trust deeds in Oz with that wording.
That means that every superfund account is only able to have a cash account and is missing out on trading in futures, currencies and options worldwide and later the exchange traded cfd`s in Australia.

The customer officer remarked that the investment strategy of the funds appears to be printed out from the internet and wanted a full copy of the signed trust deed.
Well mine will always be printed from the internet, because there is no other way for me.

Obviously in Oz it can be done differently: here I can buy a trust deed straight from a website (mine was from trustdeed.com.au), print it, sign it and submit it to the Australian Tax Office. As proof I sent IB a copy of the registration of the superfund being registered with the ATO.

Now I dont know if your read about it, but the superfund industry is BIG business now and a couple could deposit $2million before 1st of July this year into their superfund. Estimates were that 80-100 billion dollars went in, so that should be a good market for IB.

Seems like for the moment I can only open a cash account with IB until changes have been made to the account opening process

 

[Steve-IB]

yonnie,
You can submit a letter stating that you are allowed to use margin. This will suffice.
Yes, one of the problems with trusts and institutions is that each country has a different structure, so our account requirements are not always intuitive. I'm planning to put together an account opening guide for Australia superfunds/trusts to make it easier.

 

[yonnie]

thanks Steve,

I will write that letter and fax it to IB/US.

could you also have a look at my questions last post page 6?

thanks

 

[doctorj]

could you also have a look at my questions last post page 6?

yonnie, you may need to quote the post number which can be easily found in the top right hand corner of the post. Your last post was #127.

This is because people can customise the way ASF displays posts, such as chronologically or reverse chronologically or different numbers of posts per page.

 

[yonnie]

thanks doc, I`ll try again.

Steve could you look at my questions at post 120?

thanks

 

[Steve-IB]

Steve,

In Oz money from trades are deducted or deposited into the trader`s account by brokers 3 days after the trade.
what is IB`s position?

I trade under different account names (my wife`s, my son`s etc). Could I transfer shares from those accounts in different names to the clearing house with my IB account number and sell the shares through my IB account?

thanks

You would need funds in the account when you place the trade (or atleast the 50% margin requirement). We would update your buying power and credit cash immediately when you buy/sell. However, any interest due/payable would be based on settlement dates - similarly you could only withdraw settled cash.

You should just transfer shares which are in the same account name.

 

[professor_frink]

Hi Steve,

is IB having troubles today? Whenever I try and do something in TWS, Zeroline trader, or Quotetracker, the connection drops out for a while.

I can't add any new rows in TWS, which is a bit of a problem presently, as zeroline trader hasn't been updated to support the ASX yet.

 

[ta2693]

'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.”
IB: Yes, initial margin is 50% (2:1), maintenance is 25% (4:1). You don’t need to use the margin if you have the cash in your account."

does that mean at the beginning of trading, I have to have 50% the amount of the share? if the price of the share fall 50%, I will receive margin call?

 

[oldpos]

With IB do I have to have money already there to place an order, or like Commsec rely on T+3 availabilty. That way it means I can trade in and out without really needing to have all the money upfront. (ie place 5 bids while only having balance for 3).

Also as a newby, how far do I have to go to get Market Depth showing the individual bids and offers and who is listing them?

cheers.

 

[ta2693]

can anyone here tell how to transfer comsec shares to IB?
Where to download the IB share transfer application form?
Thank you

 

[yonnie]

does that mean at the beginning of trading, I have to have 50% the amount of the share? if the price of the share fall 50%, I will receive margin call?

yes, 50% of the order value

if share price falls by 25% you will receive a margin call

 

[Steve-IB]

“does that mean at the beginning of trading, I have to have 50% the amount of the share? if the price of the share fall 50%, I will receive margin call?”
IB: Yes. But if your equity drops below the maintenance margin, then we will liquidate part of the position to bring your account back into compliance. We will not call you for extra margin, you will need to monitor this yourself

“With IB do I have to have money already there to place an order, or like Commsec rely on T+3 availabilty. That way it means I can trade in and out without really needing to have all the money upfront. (ie place 5 bids while only having balance for 3).”
IB: When you place an order it will check whether funds are in place. You will need to have funds equal to at least 50% of the value of the stock, in the account in order for it to be accepted.

“Also as a newby, how far do I have to go to get Market Depth showing the individual bids and offers and who is listing them?”
IB: We give you the top 5 price levels of the market depth, and the total size at each price.

“can anyone here tell how to transfer comsec shares to IB? Where to download the IB share transfer application form?”
IB: Send an e-mail to the customer service desk, help at interactivebrokers dot com, subject title Attn: Steve, Australian Stock Transfer

 

[juw177]

Steve, this question has been brought up before but you didnt answer clearly:

In Australia, when you sell a stock, you receive the contract and money 3 days after the order execution. In those 3 days, my broker will allow me to buy other stocks using the proceeds from the sale even though I have not yet received the money.

Will IB allow this?

 

[Steve-IB]

Steve, this question has been brought up before but you didnt answer clearly:

In Australia, when you sell a stock, you receive the contract and money 3 days after the order execution. In those 3 days, my broker will allow me to buy other stocks using the proceeds from the sale even though I have not yet received the money.

Will IB allow this?

Sure, assuming you have a margin account which 99% of customers do, then you'll be able to turnover the account as much as you want. E.g. your account has $10,000 in it. You could buy $10,000 BHP, then sell, then buy $10,000 FGL, then sell it, then buy $10,000 AIO then sell it, etc., all on the same day

 

[juw177]

But will there be interest charged for those 3 days where I dont have the money available?

 

[Steve-IB]

But will there be interest charged for those 3 days where I dont have the money available?

No.