Interactive Brokers and Australian Clients

[traderjo]

I opened accounts with Interactive Brokers more than a year ago attracted by global coverage + low comms + SIPC security etc
However been very annoyed with them due to following reason
Is anybody in same boat?
IN a nutshell "Why can't a big broker like IB sort the mess they have with ASIC and start offering Australians clients the service we deserve"
Stop blaming the regulator and just get on with the job (other from overseas have done it to name a few Options Express, IG, Saxo, and in FX area Oanda , FXCM or worst many small time brokers have AFSL!)

Every time I ask why this is not sorted out yet I get a stock standard answer we are working on it ( for what more than a year!)
1) Don;t offer Margin T a/c
2) Can't short stock
3) Can't trade Single Stock Futures (but can trade other futures)
4) Can/t trade FX
and the latest
5) Can't convert FX balance

http://www.bloomberg.com/news/articl...rrency-trading


IB if you are listening sort out the mess (stop blaming the regulator) or stop taking Australian clients

 

[traderjo]

Further to the FX issue
It means one can't just have AUD converted in to USD and seating in the A/c ( that presumably is considered a FX trade!
One must trade in USD denominated instrument
Can you change base currency though? I guess you could

The only way ( as somebody else mentioned) is you take a trade in USD instrument and IB will internally convert it!

This has multiple issues
1) You can't see the rate upfront ( The support person from HK gave me this link as guide though ... the US/ Canada support was useless
http://aud.ibkrdemo.com/quotesfe/data/ibaud

2) Your $2 conversion fee gets repeated
3) Complications with T+3 settlement and back

 

[sails]

I opened accounts with Interactive Brokers more than a year ago attracted by global coverage + low comms + SIPC security etc
However been very annoyed with them due to following reason
Is anybody in same boat?
IN a nutshell "Why can't a big broker like IB sort the mess they have with ASIC and start offering Australians clients the service we deserve"
Stop blaming the regulator and just get on with the job (other from overseas have done it to name a few Options Express, IG, Saxo, and in FX area Oanda , FXCM or worst many small time brokers have AFSL!)

Every time I ask why this is not sorted out yet I get a stock standard answer we are working on it ( for what more than a year!)
1) Don;t offer Margin T a/c
2) Can't short stock
3) Can't trade Single Stock Futures (but can trade other futures)
4) Can/t trade FX
and the latest
5) Can't convert FX balance

http://www.bloomberg.com/news/articl...rrency-trading


IB if you are listening sort out the mess (stop blaming the regulator) or stop taking Australian clients

If these are the conditions they offer us, then that's what it is and I doubt very much they will be influenced by anybody's rant.

If you are so unhappy, why not use another broker which might better suit your personal needs? IB is just fine for me so each to his own.

IB, if you are listening, I do hope you continue to take Australian clients.

 

[traderjo]

If these are the conditions they offer us, then that's what it is and I doubt very much they will be influenced by anybody's rant.

If you are so unhappy, why not use another broker which might better suit your personal needs? IB is just fine for me so each to his own.

IB, if you are listening, I do hope you continue to take Australian clients.

With all due respect to you mate, those restrictions might be fine for you but many others are seeking the same service / facility that other US brokers offer to Australians... think about the logic behind what I have said I am not expecting some extra ordinary facility that no body else has ,...I too do wish that IB continues to take IB clients.. but such disregard leaves bad test in mouth further the customer service is indifferent to all this (specially when you call in the US hours) . So it is not much about having a rant but to see if other's have experienced similar issues! and enough wish that IB does restore complete service then we should tell them.

 

[McLovin]

With all due respect to you mate, those restrictions might be fine for you but many others are seeking the same service / facility that other US brokers offer to Australians... think about the logic behind what I have said I am not expecting some extra ordinary facility that no body else has ,...I too do wish that IB continues to take IB clients.. but such disregard leaves bad test in mouth further the customer service is indifferent to all this (specially when you call in the US hours) . So it is not much about having a rant but to see if other's have experienced similar issues! and enough wish that IB does restore complete service then we should tell them.

Retail traders in Australia are apparently not their target market. Obviously someone has decided that for whatever reason it is not profitable.

 

[ThirtysixD]

Who is next cheapest for international trades? I am stuck with too much foreign currency

I was told that tradier was launching in Australia soon.

 

[Gringotts Bank]

Who is next cheapest for international trades? I am stuck with too much foreign currency

I was told that tradier was launching in Australia soon.

Tradier looks good on first glance. I sent them an email to sound things out. Have you heard any more 36DD?

 

[minwa]

Tradier certainly looks more attractive than OX but still can't touch IB in terms of fees.

Also

Outgoing transfers

$60.00 Automated Customer Account Transfer (ACAT)
$25.00/position Depository Transfer Check (DTC)
$25.00 Wires

Certainly turns off full time traders who withdraw from account regularly.

 

[kid hustlr]

With the FX restrictions, can someone explain the process of buying foreign instruments for me?

Say I have a an AUD account with 10k in it and I want to buy 5k worth of Apple shares. Can I still do it? what exchange rate do I get? is there costs involved?

 

[ThirtysixD]

Tradier looks good on first glance. I sent them an email to sound things out. Have you heard any more 36DD?

Nothing yet

Tradier certainly looks more attractive than OX but still can't touch IB in terms of fees.

Also

Outgoing transfers

$60.00 Automated Customer Account Transfer (ACAT)
$25.00/position Depository Transfer Check (DTC)
$25.00 Wires

Certainly turns off full time traders who withdraw from account regularly.

There is likely to be a promotional/discount brokerage offer to attract new users (similar to Quantconnects offer of $1 per trade). Just have to wait and see how much they charge for order books / data etc.

Maybe Robinhood will end up launching first?

 

[Gringotts Bank]

Nothing yet



There is likely to be a promotional/discount brokerage offer to attract new users (similar to Quantconnects offer of $1 per trade). Just have to wait and see how much they charge for order books / data etc.

Maybe Robinhood will end up launching first?

I got a reply saying the rumour was false. They're not considering it (Tradier).

 

[ThirtysixD]

I got a reply saying the rumour was false. They're not considering it (Tradier).

thats not good news

need some more low cost brokers to shakeup our overpriced market

 

[Roller_1]

With the FX restrictions, can someone explain the process of buying foreign instruments for me?

Say I have a an AUD account with 10k in it and I want to buy 5k worth of Apple shares. Can I still do it? what exchange rate do I get? is there costs involved?

If you have a cash account with AUD and place an order for AAPL or any US shares, IB will just do the currency exchange for you and you will pay commission on that transaction plus the AAPL transaction. So you might pay 2-3 dollars instead of 1. Not sure of the exact exchange rate i am just assuming the rate at the point of execution..

 

[bankyodolla]

IB now allows shorting on stocks for Australian individual accounts! Finaly. CFD's have also been allowed for some time however with no leverage. No margin lending yet as far as I can see though..

FX trading has also been allowed for some time..