Hello folks,
I spoke to IB customer service today. They did advise me that I am only allowed to open the cash account. But, the consultant did advise me that I can still trade stocks, CFDs, futures and commodity futures. I can't trade currencies and can't write naked options. I asked him twice and he repeated the same thing. I was skeptical about the info he gave me as the IB website has N/A under futures in cash account.
I called up IB customer service once again and another consultant advised the same thing.
They said that I can't get the margin to trade. But, I can still trade futures and CFDs as the margin is set by the exchange. I do need to fulfill the complete margin requirements though.
No, that is wrong. You can't trade CFDs. But yes you can trade futures, the problem is that the Aussie SPI futures have a 25 multiplier so the minimum exposure you can take is 1 contract = $140,000 worth and of course that is also the increments as you go from 1 to 2 to 3 etc.. Totally useless for most smaller players.
Guess its no forex for aussie's now too cant even do a simple currency conversion hope this is fixed quicky guess these bans have something to do with this.
http://www.abc.net.au/news/2015-02-12/foreign-exchange-traders-fight-to-save-millions/6087976
I'm starting to worry it wont be that long and I wont even be able to trade futures on retail account.
This whole thing sounds like a big bluffing game between IB and ASIC. No doubt, some government jerk has his nose in a trough somewhere...i doubt its about protecting traders and investors.
Australia is such a dud when it comes to trading....:frown:
CanOz
No, that is wrong. You can't trade CFDs. But yes you can trade futures, the problem is that the Aussie SPI futures have a 25 multiplier so the minimum exposure you can take is 1 contract = $140,000 worth and of course that is also the increments as you go from 1 to 2 to 3 etc.. Totally useless for most smaller players.
As clients we need to do some complaining. The latest news - ASIC banning simple forex conversions - is outrageous. I used IB to convert AUD to Euro/USD to convert at 0.01% rather than the 3% the banking cartel puts on all forex conversion.This whole thing sounds like a big bluffing game between IB and ASIC. No doubt, some government jerk has his nose in a trough somewhere...i doubt its about protecting traders and investors.
Australia is such a dud when it comes to trading....:frown:
CanOz
As far as I can tell (they don't explain very well), you can keep current (non-margin/non-leveraged forex) balances, but you can't convert more AUD to USD and hold it in your account, or convert between other currencies.
Thanks for your reply. How do we go about buying more overseas shares now.
Thanks for your reply. How do we go about buying more overseas shares now.
I am not sure the mechanics of doing it, but the letter seems to suggest that they will use a 3rd party to convert the necessary funds for the transaction....
Things Australian IB Clients Can Continue to Do:
• Australian clients can continue to trade international products such as stocks and exchange-traded futures and options that are denominated in foreign currencies.
• You may continue to incur foreign currency balances in connection with purchases and sales of international investment products denominated in foreign currencies.
• You may close foreign currency balances (e.g., by converting them into Australian dollars).
If IB is required to convert Australian dollars into a foreign currency (or vice versa) in support of any of the allowable transactions just described, IB will use its best efforts to arrange to execute on your behalf a foreign exchange transaction with one of our forex liquidity providers.
As an aside, I remember chatting to some overseas FX traders who decided to register companies in Central America, transfer their funds to an account under that company and then open a trading account under the company's name.
Could a similar solution be used here? Maybe not in Central America, but I don't see why I couldn't do the same thing in New Zealand? (don't require citizenship and are outside of ASIC jurisdiction).
Any thoughts?
I have had an IB cash account for about 6mths and have been looking for a way to get a margin account. The only solution that I have been able to come up with is to setup an LLC in the US (which can be done online for around $800) and then open an IB margin account using the new LLC as the legal entity for the account.
I actually stumbled across this forum looking for other Aussies that may have already done this. It seems pretty easy to do but before I invest time into setting this up I would love to hear from someone that might have already done it (or from those that say it it won't work).
Surely this is a simple solution that will overcome all the problems/restrictions that we have as Aussie traders on IB?
Cheers
Paul
Did anyone complete this form? I don't see any option for a company. If anyone has successfully completed this process, please let me know how you filled in this form? Thanks!
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