Interactive Brokers

[kid hustlr]

Argghhhh

anyone see the email regarding the change to IB Australia?

I started up a company account (and a company overall) so I could have the ability to trade on margin if and when I needed to and it appears they are going to scrap that option.

Spewing.

 

[jlryan87]

I did the same, opened a company account a few years back just to get the margin capability. I was in total shock when I saw the email.

I had spoken to a rep and was told that things are moving fast at IB AU compliance team in terms of removing restrictions around margin. Otherwise what's the point of IB AU anyway, since most customers are not professional or wholesale investors. I was told next month IB AU will have another update, likely to announce margin to be made available for all. Holding my breath and fingers crossed!

 

[bellenuit]

I did the same, opened a company account a few years back just to get the margin capability. I was in total shock when I saw the email.

I had spoken to a rep and was told that things are moving fast at IB AU compliance team in terms of removing restrictions around margin. Otherwise what's the point of IB AU anyway, since most customers are not professional or wholesale investors. I was told next month IB AU will have another update, likely to announce margin to be made available for all. Holding my breath and fingers crossed!

What's the point in moving fast to remove restrictions around margin, if they are just imposing new restrictions. I can't see why they would be announcing margin for all next month is they are removing it this month for some of those that can have it?

 

[jlryan87]

bellenuit, ASIC has been bullying IB and we all know that. All other brokers including the dodgier ones get to offer margins but IB on the other hand, which itself is a major operation listed in the NASDAQ and a component of S&P 400, surprisingly struggles to get the same basic offering approved for a few years already. It is an obvious murder of a genuine competitor, and we are the collateral damage. ASIC is literally murdering Australians (financially) on the pretext of protecting them, and the real conspiracy is really just to protect certain businesses as they cannot compete with IB. This does not sit well with me.

 

[bellenuit]

But this announcement doesn't indicate that they are withdrawing support for companies classed as Retail because of ASIC. It just seems to be a self imposed restriction.

 

[notting]

My application was approved but sadly I'm unimpressed and will probably not fund the account.

can't you deposit into their Australian account in Sydney? it gets transferred instantly pretty much.
Bank of America, N.A. (Sydney Branch)
Level 64, MLC Centre, 19 Martin Place, SYDNEY, NSW, 2000, AUSTRALIA
BSB Code: 232-001
SWIFT BIC Code: BOFAAUSX (The SWIFT BIC code is not required for online banking transfers but can be required by your bank for telegraphic transfers/wire transfers)
Bank Account Name: Interactive Brokers LLC.

 

[brisman]

Their ASX CFDs compare quite well with a Commsec margin loan if you don't have a huge account or need franking credits. $5 brokerage, $1 for the ASX200 index, 3.321% pa daily interest charge on the total value, and they pay 1.32% on your cash balance over $14k. 15% margin for shares, less for the index. Also USD and they are offering GBP and EUR base currencies now too with some regulatory restrictions from EU. I've dabbled a bit, had poor timing buying prior to OCT but hedged the loss in the last couple of weeks with a temporary sold index.

 

[blue0810]

can't you deposit into their Australian account in Sydney? it gets transferred instantly pretty much.
Bank of America, N.A. (Sydney Branch)
Level 64, MLC Centre, 19 Martin Place, SYDNEY, NSW, 2000, AUSTRALIA
BSB Code: 232-001
SWIFT BIC Code: BOFAAUSX (The SWIFT BIC code is not required for online banking transfers but can be required by your bank for telegraphic transfers/wire transfers)
Bank Account Name: Interactive Brokers LLC.

Now IB is using HSBC Bank Australia Ltd Sydney

 

[blue0810]

Their ASX CFDs compare quite well with a Commsec margin loan if you don't have a huge account or need franking credits. $5 brokerage, $1 for the ASX200 index, 3.321% pa daily interest charge on the total value .

I notice that IBAU200 CFD (ASX200 index ) is open at 11am instead of 10am. Sydney time
So you can not trade the first hour.

 

[Gar]

Hey guys!

Been a while since I've posted here, I would love a bit of assistance if anybody has the time.

I'm looking to change over from ANZ Invest to IB.

I'm an options only trader these days basically only trading XJO and the banks, I would love to swap over and trade straight out puts and calls but also some credit / debit spreads can anybody tell me what I would need to do to set up an account?

Do I need extra data feeds, account minimums, US tax status or any other technicalities these days?

Thanks in advance for any assistance it would be greatly appreciated, I've been looking to swap over for years but always found a hitch.

Cheers!

 

[tech/a]

I’m not an options trader
But you can trade anything on IB

Last time I looked min opening account was $12000
You don’t need their data feed but if you trade enough it’s free
I like it and have real-time.
Setup is lengthy and you’ll need to give your tax file number.
But once set up it’s a great platform and the I phone work station is fantastic

Hope this helps

 

[Gar]

Thanks tech,

I know there is a palava with the whole margin thing, I'm wondering if I'll need margin to write options if I have them covered with other calls / puts.

I would love to switch to these guys it's like changing from a toy platform to a proper tool kit

 

[tech/a]

Don’t think it will be a problem
I trade Futures without an issue.

Only stock related Margin

 

[cutz]

Thanks tech,

I know there is a palava with the whole margin thing, I'm wondering if I'll need margin to write options if I have them covered with other calls / puts.

I would love to switch to these guys it's like changing from a toy platform to a proper tool kit

Your talking spreads yeah, not a problem.

With any luck stock margin will become available again.

 

[freebird54]

I sell puts and of course can be exercised at any time so if you are not monitoring daily they will liquidate your holdings randomly if you are not cash covered
Luckily I am a citizen of another country so will close my a/c here and open one there where minus balances are allowed
The cheap interest on margin loans was great whilst it lasted - cheap brokerage now has a lot of competition - $5 a trade or a new one with no brokerage I see advertised !!!

 

[Gar]

Thanks guys, I'll give it a go.

I've been playing with the demo and there is absolutely no comparison between ANZ/Etrade and these guys, I've had way too many problems with ANZ over the years & it's getting worse..... time to let them go I think.

I discovered yesterday ANZ doesn't even have a deposit function or list bank details for EFT funding of your account these days, you have to contact them for that information.... well done guys haha

 

[freebird54]

Just found a problem with corporate actions - they close off earlier than Australian brokers

 

[chipotle]

Does anybody know if you can hold USD in an IB Australia account?

It used to be the case that every day after closing US stock trades, they'd automatically convert it back to Aussie dollars?

If so what is the process (as their support told me that the system just does the conversion)?
How do I prevent them converting my US sales proceeds back into AUD?

Thanks

 

[bellenuit]

Does anybody know if you can hold USD in an IB Australia account?

It used to be the case that every day after closing US stock trades, they'd automatically convert it back to Aussie dollars?

If so what is the process (as their support told me that the system just does the conversion)?
How do I prevent them converting my US sales proceeds back into AUD?

Thanks

I don't know if the automatic conversion you speak of is only for above a certain threshold, but I have about USD 400 sitting in a cash account and USD 650 in a margin account for several weeks without being converted back to AUD.

I do know that on my margin account I cannot extend the amount of USD over what it currently is. So if I wanted to buy shares to the value of USD 10K, I cannot transfer USD 10K into my USD account before the purchase. I must first buy the shares and can then only transfer the exact amount into the account to bring the USD balance to zero. So if it had USD 500 in it to begin with and I bought USD 10K of shares, it will only allow me to transfer through a forex transaction USD 9.5K to the account.

 

[brisman]

Does anybody know if you can hold USD in an IB Australia account?

It used to be the case that every day after closing US stock trades, they'd automatically convert it back to Aussie dollars?

They haven't done that to my accounts for USD. I got a message recently saying they would now stop doing that for GBP and EUR but I haven't tested that yet. Most of my accounts cash are in USD.