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Choosing a platform

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hutcho73

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Hi all Im just researching at the moment to find a platform for trading under $20k everyday to produce a modest income as I cannot return to work. Australian shares only, with a platform that has smart software and if anything goes wrong with the trading company, my money is protected. e-trade, Amscot discount trading or cmc?
Advise appreciated :cool:
 
hutcho73 said:
Hi all Im just researching at the moment to find a platform for trading under $20k everyday to produce a modest income as I cannot return to work. Australian shares only, with a platform that has smart software and if anything goes wrong with the trading company, my money is protected. e-trade, Amscot discount trading or cmc?
Advise appreciated :cool:
Click to expand...

Please validate this from our experience traders here as I'm a newb, however I would seriously look at IB brokers and possibly look to the US. For example for my small trades I am paying under $3.00 in and under $3.00 out for brokerage. I currently follow a bloke in Noosa called Radge whilst I'm learning. Not sure what type of income you hope to generate, but the Aussie brokers will suck some life from you particularly if you are trading regularly.

Good luck
 
merlinnn said:
Please validate this from our experience traders here as I'm a newb, however I would seriously look at IB brokers and possibly look to the US. For example for my small trades I am paying under $3.00 in and under $3.00 out for brokerage. I currently follow a bloke in Noosa called Radge whilst I'm learning. Not sure what type of income you hope to generate, but the Aussie brokers will suck some life from you particularly if you are trading regularly.

Good luck
Click to expand...

Maybe the quickest way to lose your money
 
hutcho73 said:
Hi all Im just researching at the moment to find a platform for trading under $20k everyday to produce a modest income as I cannot return to work. Australian shares only, with a platform that has smart software and if anything goes wrong with the trading company, my money is protected. e-trade, Amscot discount trading or cmc?
Advise appreciated :cool:
Click to expand...

Interactive Brokers is arguably the cheapest, safest broker in the world.

If they go broke, god help us all.:eek:
 
skyQuake said:
IB is the cheapest and most reliable you'll find by a long shot
Click to expand...

Ive been reading a lot of threads and it seems there is good and bad in all platforms.
One thread mentioned the difference between IB and CMC that IB would lose customers money if they
went under (god help us) and CMC is regulated therefore if they went broke your money would be protected, but as you say the chances of that happening is pretty slim. I recently had a go with EQ trader software and loved it. (pretty expensive 12k) Trying to look for something that has great graphs and educational tools to give me the best idea of how this all works.:brille:
 
hutcho73 said:
Ive been reading a lot of threads and it seems there is good and bad in all platforms.
One thread mentioned the difference between IB and CMC that IB would lose customers money if they
went under (god help us) and CMC is regulated therefore if they went broke your money would be protected, but as you say the chances of that happening is pretty slim. I recently had a go with EQ trader software and loved it. (pretty expensive 12k) Trying to look for something that has great graphs and educational tools to give me the best idea of how this all works.:brille:
Click to expand...

IB is rated A- stable by S&P, which is a bit better than any wall st bank. Deposits also covered by LLoyds of London yadda yadda. They're pretty safe.
https://www.interactivebrokers.com/en/index.php?f=2334

CMC is a CFD provider, so you'd face counterparty risk and all that.

EQ trader looks heaps dodgy. Wat is it? Platform? Broker? Advisory Service?
 
hutcho73 said:
Ive been reading a lot of threads and it seems there is good and bad in all platforms.
One thread mentioned the difference between IB and CMC that IB would lose customers money if they
went under (god help us) and CMC is regulated therefore if they went broke your money would be protected, but as you say the chances of that happening is pretty slim. I recently had a go with EQ trader software and loved it. (pretty expensive 12k) Trying to look for something that has great graphs and educational tools to give me the best idea of how this all works.:brille:
Click to expand...

IB has insurance against your funds to $100,000 I think. Depending on what account type you have with CMC thats not protected. No idea what "regulated" means or why that would give you protection. Plenty of brokers have gone broke recently and its been a mess for clients.

Trading 20K, especially as a newbie, will get you nowhere but more likely 10K before you know it.
 
Trembling Hand said:
IB has insurance against your funds to $100,000 I think. Depending on what account type you have with CMC thats not protected. No idea what "regulated" means or why that would give you protection. Plenty of brokers have gone broke recently and its been a mess for clients.

Trading 20K, especially as a newbie, will get you nowhere but more likely 10K before you know it.
Click to expand...

Eq trader is a company from gold coast that created a computer programme to give you live trading information and how to predict spikes in the market (for the everyday mums and dads to create waelth) you cant trade from it directly but its an educational tool to help you trade, I couldn't find much on it on the net. I just found another trading platform, Amscot discount trading . Need to investigate more on that as not interested in cmc due to poor customer service. Commsec way too expensive. Sounds like IB is the favourite:afro:
 
12k sounds ridiculously expensive.

Wont be the first scam to operate out of that very address at the gold coat lol
 
Have a look at IG. It's definitely the top CFD provider in Australia. All the money held by IG is placed into a regulated trust account in a top tier Australian bank so even if they go under, your money is still safe. Basically, they don't use any client funds in their business so IG is very reliable in regards to client money protection.

Recently, ASIC conducted a thematic review with a focus on CFD providers and how they handle client money. There were some firms that had to undergo an enforced undertaking. IG had a clean bill of health so it shows they do demonstrate very good industry practice. Definitely a platform I would recommend.

Also, IB only offers CFD's for the top 200 ASX shares. Margins are also quite strict at 4:1. In comparison, you can trade CFD's from all over the world with 20:1 leverage. That way, you'll also be less likely to be margin-called when you place multiple trades.
 
JLM Financial said:
Also, IB only offers CFD's for the top 200 ASX shares. Margins are also quite strict at 4:1. In comparison, you can trade CFD's from all over the world with 20:1 leverage. That way, you'll also be less likely to be margin-called when you place multiple trades.
Click to expand...

what totally crap advice. :rolleyes:

- - - Updated - - -

hutcho73 said:
Eq trader is a company from gold coast that created a computer programme to give you live trading information and how to predict spikes in the market (for the everyday mums and dads to create wealth)
Click to expand...

You clearly forgot the bit in blue

(for the everyday mums and dads to create wealth for the sellers of snake oil)
Click to expand...

And if you want to know who that is,

Loss4U.jpg

http://successforyou.com.au/about-nuccia.html
 
JLM Financial said:
All the money held by IG is placed into a regulated trust account in a top tier Australian bank so even if they go under, your money is still safe.
Click to expand...

Not entirely. One issue to come out of the court orders from the administration of MFGA was that administrators of the company are able to access client money held in trust accounts to pay for any expenses in seeking court orders regarding the distribution of those funds. In the case of MFGA the clients paid the court costs of parties who were attempting to claim ownership of client funds. IG Markets is a different business model to MFGA however in the event of an insolvency they'll be governed by the same laws.

The recent New South Wales Supreme Court (Court) decision in In re MF Global Australia Ltd (in liq) No 2 [2012] NSWSC 1426 (23 November 2012) confirms that liquidators who properly incur costs and expenses in seeking court directions regarding the distribution of trust property and, in recovering such property, will generally be able to recover their relevant remuneration, costs and expenses from that trust property.
Click to expand...

http://www.lexology.com/library/detail.aspx?g=358bae31-5581-421f-a680-170b97a77c50
 
Some facts: CMC is a well known discount stockbroker as well as CFD provider. They are backed by Bank West, a division of CBA, which has a high security rating. It has low brokerage and a stable, easy-to-use platform. It consistently wins best broker awards on Canstar. Downside is it has very poor customer service, but that's pretty standard amongst brokers nowadays. The only broker I've found with good customer service is Bell Direct,

IB has a huge thread on ASF entitled "IB troubleshooting". Have a read of that before you decide what is stable and what's not.
 
Gringotts Bank said:
IB has a huge thread on ASF entitled "IB troubleshooting". Have a read of that before you decide what is stable and what's not.
Click to expand...

GB the reason IB has that thread is the amount of products and huge exchanges available. It has nothing to do with stable or not it by its nature is quite powerful and therefore complex.

- - - Updated - - -

Chris.M said:
Are you referring the account protection mentioned here? https://www.interactivebrokers.com/en/index.php?f=ibgStrength&p=acc

It looks to be a bit more than $100,000.

Here is a SIPC brochure: http://www.sipc.org/Portals/0/PDF/HSPY_English_2011.pdf

Can anyone explain how this works?
Click to expand...

Didn't the two links you provided explain it? :confused:
 

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