Interactive Brokers
- Thread starter MrMarcus
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G'day all
I am part way through opening an Interactive Brokers account - yes it is a lengthy process but has not been too difficult - I am up to the funding the account stage.
I am aiming to trade ASX shares and possibly CFD's down the track and was attracted to IB by their low commissions - have been trading for 3 years and paying a lot more than $6 in and $6 out. Their range of order types on TWS also covers what I need plus some.
I have read plenty of negative comments on IB - wondering if there are any IB users out there who are comfortable using them and have had good experiences.
All replies appreciated.
Cheers
Paul
I am part way through opening an Interactive Brokers account - yes it is a lengthy process but has not been too difficult - I am up to the funding the account stage.
I am aiming to trade ASX shares and possibly CFD's down the track and was attracted to IB by their low commissions - have been trading for 3 years and paying a lot more than $6 in and $6 out. Their range of order types on TWS also covers what I need plus some.
I have read plenty of negative comments on IB - wondering if there are any IB users out there who are comfortable using them and have had good experiences.
All replies appreciated.
Cheers
Paul
tech/a
No Ordinary Duck
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Wouldnt use anyone else.
Platform excellent.
Never had an issue.
One stop shop.
Shorting ASX a no go but plenty of US stocks.
4:1 leverage during the day and 2:1 overnight
automatic.
Platform excellent.
Never had an issue.
One stop shop.
Shorting ASX a no go but plenty of US stocks.
4:1 leverage during the day and 2:1 overnight
automatic.
G'day tech/a
Thanks for the reply.
My original question was posted on a different section of this forum (sorry - new at it) and after seeing where it has been moved to and reading all of the other posts in this thread it looks like there are a few more fans out there.
Thanks again
Paul
Thanks for the reply.
My original question was posted on a different section of this forum (sorry - new at it) and after seeing where it has been moved to and reading all of the other posts in this thread it looks like there are a few more fans out there.
Thanks again
Paul
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If you're trading ASX stocks then be aware of issues with order vetting during open/close and news release auctions as well as delays experienced during name/code changes with stocks. It's discussed in depth on the thread below beginning around post 429.
https://www.aussiestockforums.com/f...t=interactive+brokers+troubleshooting&page=22
I still use IB for a longer term system but don't use them for a short term breakout system because of the vetting issues. Their TWS platform is A1 and makes aussie broking platforms look second rate, but it's very important to be aware of the vetting issues!
Hi guys, just wondering if anyone has an easy way of calculating P&L on each trade on IDEALPRO?
At the moment, IB statements only give you a total P&L from a particular FX pair, which is not really useful for stats. I've been just manually calculating each trade using excel, but would love to hear if anyone has a simpler way of getting the P&L from each trade, much like how they have it for futures.
Thanks.
At the moment, IB statements only give you a total P&L from a particular FX pair, which is not really useful for stats. I've been just manually calculating each trade using excel, but would love to hear if anyone has a simpler way of getting the P&L from each trade, much like how they have it for futures.
Thanks.
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The link I posted above highlights some of the IB specific issues with vetting.
https://www.aussiestockforums.com/f...t=interactive+brokers+troubleshooting&page=22
This blog post gives a run down of the rules...
http://thinkminc.blogspot.com/2008/09/order-vetting-on-asx.html
Basically it's more of an issue with IB as they're a fully electronic based broker without someone sitting in their dealing room pushing buttons to allow orders outside the vetting rules through. Most aussie brokers have someone who will check orders that are outside the vetting rules and allow them through. This is why you'll see a delay in some orders particularly through the pre-open/close auction periods. To get the vetting of an order lifted by IB requires a phone call etc. More explanation in the IB link I posted above.
Most people wont be affected and probably wont even notice it, but if you're chasing breakouts in particular then IB can become very frustrating. I use an aussie based broker for a breakout system I trade because of these issues but quite happily use IB for a couple of other less volatile systems. Horses for courses I guess.
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This post from Paul in the IB troubleshooting thread I linked to previously gives a good explanation. Not sure if things have changed, there was talk of a relaxation of the rules a while ago...
https://www.aussiestockforums.com/forums/showpost.php?p=447131&postcount=441
https://www.aussiestockforums.com/forums/showpost.php?p=447131&postcount=441
G'day all
Does anyone know if it is possible to get a list of NYSE-lisetd IB shortable stocks apart from checking the availability manually via the trading tab on their web site, or trying to enter a short order to see if it is accepted ? What I'm hoping to find is a way of getting a list into Excel.
Thanks
Paul
Does anyone know if it is possible to get a list of NYSE-lisetd IB shortable stocks apart from checking the availability manually via the trading tab on their web site, or trying to enter a short order to see if it is accepted ? What I'm hoping to find is a way of getting a list into Excel.
Thanks
Paul
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Hi everyone, new poster on here, just discovered this forum.
So i used to live in UK for a while and traded, mainly options (and mainly writing). Got my **** kicked writing too many naked puts back in around 2002just before the FTSE halved and went and did something else for a while.
Back in oz a few years now and recently opened a comsec account, bought some stocks and traded some options. Different sysytem than I was used to, separate accounts for every thing including cash, a website for trading that is hardly state of the art, but at least you could sell to open over the net which is more than my UK broker (odl) has got round to. I set it up cos i was basically going to buy and hold stocks and write a few calls and puts along the way. Option trading not exactly cheap with comsec but didnt seem any worse than the rest of them.
Once i opened the account and made a few trades i got the bug back and started trading some more. With those sort of commssions you dont want to be trading any more than you have to and spreads are virtually prohibitive due to the commissions both sides, especially if you are exercised
So anyway I had this old IB account set up in the UK, i used to dabble with US futures back in the old days. It has been sitting dormant with 1500 quid in it since around 2003. So i open it up to have a look (jump through loads of hoops about some new fangled security device) and today thought i would give it a run on aussie stocks options.
I did a test trade by pulling up an XJO put on IB on one hand and Comsec on another screen. i didnt pay for the live pricing so i had no prices at all on IB, but got round this by using Comsec's version of live pricing (keep on hitting the 'get quote' button). So i place a test trade - an offer to sell inside the spread , just below the market offer. Within less than one second my offer had appeared on the comsec 'live' price for that option, ie it had gone through the ASX and back out to comsecs portal. This is considerably quicker than the same trade placed through comsec itself. i changed the limit on IB and less than one second later it changes on comsec again. Fantastic
I change the limit again to the mid price and IB tells me i have a fill imediately. I check the trade and yes they really did only charge me 3 bucks for the same trade comsec would charge me $35 for.
Hallehluhlyah. This means i can actually trade in and out, trade spreads cost effectively and just damn well save money when i want to write say one call for a $600 premium without losing 5% of it in brokerage.
so a couple of questions if someone would be so kind;
1) I take it there is just one sort of worldwide account rather than one specifically with IB Australia. Anyone see any reason not to just keep using the UK based one?
2) On TWS my 'buying power' figure is about three times the cash that was in the account. judging by posts i have read in this thred it looks like this is some sort of automatic margin loan facility (with a cheap interest rate). can anyone confirm this?
3) has anyone had a short option exercised through IB? any nasty surpises on commission or anything else?
4) I have asked twice for this security card and none has shown up. any one else have this problem?
thanks
village
So i used to live in UK for a while and traded, mainly options (and mainly writing). Got my **** kicked writing too many naked puts back in around 2002just before the FTSE halved and went and did something else for a while.
Back in oz a few years now and recently opened a comsec account, bought some stocks and traded some options. Different sysytem than I was used to, separate accounts for every thing including cash, a website for trading that is hardly state of the art, but at least you could sell to open over the net which is more than my UK broker (odl) has got round to. I set it up cos i was basically going to buy and hold stocks and write a few calls and puts along the way. Option trading not exactly cheap with comsec but didnt seem any worse than the rest of them.
Once i opened the account and made a few trades i got the bug back and started trading some more. With those sort of commssions you dont want to be trading any more than you have to and spreads are virtually prohibitive due to the commissions both sides, especially if you are exercised
So anyway I had this old IB account set up in the UK, i used to dabble with US futures back in the old days. It has been sitting dormant with 1500 quid in it since around 2003. So i open it up to have a look (jump through loads of hoops about some new fangled security device) and today thought i would give it a run on aussie stocks options.
I did a test trade by pulling up an XJO put on IB on one hand and Comsec on another screen. i didnt pay for the live pricing so i had no prices at all on IB, but got round this by using Comsec's version of live pricing (keep on hitting the 'get quote' button). So i place a test trade - an offer to sell inside the spread , just below the market offer. Within less than one second my offer had appeared on the comsec 'live' price for that option, ie it had gone through the ASX and back out to comsecs portal. This is considerably quicker than the same trade placed through comsec itself. i changed the limit on IB and less than one second later it changes on comsec again. Fantastic
I change the limit again to the mid price and IB tells me i have a fill imediately. I check the trade and yes they really did only charge me 3 bucks for the same trade comsec would charge me $35 for.
Hallehluhlyah. This means i can actually trade in and out, trade spreads cost effectively and just damn well save money when i want to write say one call for a $600 premium without losing 5% of it in brokerage.
so a couple of questions if someone would be so kind;
1) I take it there is just one sort of worldwide account rather than one specifically with IB Australia. Anyone see any reason not to just keep using the UK based one?
2) On TWS my 'buying power' figure is about three times the cash that was in the account. judging by posts i have read in this thred it looks like this is some sort of automatic margin loan facility (with a cheap interest rate). can anyone confirm this?
3) has anyone had a short option exercised through IB? any nasty surpises on commission or anything else?
4) I have asked twice for this security card and none has shown up. any one else have this problem?
thanks
village
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Hi IB gurus - have a question that hopefully some of the more seasoned Australian based traders could possibly answer in regards to paying taxes from off-shore earnings.
At present, I'm only trading stocks on the ASX but would be keen to trade US or UK stocks through IB. Can someone tell me from a tax perspective what the story is if you buy/sell US stocks despite residing here in Oz? A mate of mine said I'd have to pay tax to the US govt if I bought and sold US stocks? Is that correct or do I only just declare the equivalent earnings at the time of sale (profit/loss) in Australian dollars in my Australian tax return?
Any feedback would be greatly appreciated. Thanks in advance.
Sagitar
At present, I'm only trading stocks on the ASX but would be keen to trade US or UK stocks through IB. Can someone tell me from a tax perspective what the story is if you buy/sell US stocks despite residing here in Oz? A mate of mine said I'd have to pay tax to the US govt if I bought and sold US stocks? Is that correct or do I only just declare the equivalent earnings at the time of sale (profit/loss) in Australian dollars in my Australian tax return?
Any feedback would be greatly appreciated. Thanks in advance.
Sagitar
Australia and the USA have a tax agreement. Any dividends you receive will have witholding tax deducted. You declare your total dividend income to ATO and also the witholding tax paid. CGT is paid to ATO on gains in AU$.
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Hi Titl4, thanks for taking the time to respond to my query. Much appreciated.
Regards
S
Regards
S
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I'm considering transferring my current CHESS sponsored holdings to IB. This will give me the advantage of being able to use the equity in these holdings for trading.
Question though; my understanding is that with IB the shares are owned/held by IB on my behalf/in trust for me. So my name is not on any company share registries.
So if IB went belly up like Sonray; do I wave good bye to my shares?
Also, are there any tax implications with transferring to IB? Technically speaking, am I transferring my holdings to IB who will become the new owners on my behalf? OR will the ATO view it much simpler and it is effectively as though I am transferring to a new CHESS sponsor?
If this transfer is going to trigger a CG event, I would be better of selling the shares and moving the cash to IB.
Also, any tax implications or otherwise if for some reason I decide to transfer out of IB back to another CHESS sponsor of my choice?
IB requires me to instruct them to transfer my current CHESS holdings to Fortis Clearing Sydney, PID 01192. I assume this means that Fortis Clearing Sydney will be the CHESS sponsor, and from what I understand, IB will be the owner of the shares on my behalf.
So with IB becoming the owner, rather than me, this raises the above questions.
Thanks.
Question though; my understanding is that with IB the shares are owned/held by IB on my behalf/in trust for me. So my name is not on any company share registries.
So if IB went belly up like Sonray; do I wave good bye to my shares?
Also, are there any tax implications with transferring to IB? Technically speaking, am I transferring my holdings to IB who will become the new owners on my behalf? OR will the ATO view it much simpler and it is effectively as though I am transferring to a new CHESS sponsor?
If this transfer is going to trigger a CG event, I would be better of selling the shares and moving the cash to IB.
Also, any tax implications or otherwise if for some reason I decide to transfer out of IB back to another CHESS sponsor of my choice?
IB requires me to instruct them to transfer my current CHESS holdings to Fortis Clearing Sydney, PID 01192. I assume this means that Fortis Clearing Sydney will be the CHESS sponsor, and from what I understand, IB will be the owner of the shares on my behalf.
So with IB becoming the owner, rather than me, this raises the above questions.
Thanks.
skc
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IB insures your account to $30m so you should be OK even if IB goes belly up. http://www.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc
Unfortunately $30m is not quite quite enough for me - I wish!
No idea about the tax stuff. On would imagine it's not a CGT event but...
If you do not receive a contract note from a stockbroker showing that they purchased a number of shares at $x price for you and the contract note is not in your name, you have problems.
if you do not receive a Chess Holding Statement showing the movement (buy/sell) in share you hold and the number you hold, you have problems.
If, when you log on to the share register and it does not show that you hold the shares, you have problems.
If they hold the shares and go belly up, have lots of hope - and I would not rely on Australian law applying to an American company organised and established under the laws of the State of Connecticut.
Your choice, your risk.
if you do not receive a Chess Holding Statement showing the movement (buy/sell) in share you hold and the number you hold, you have problems.
If, when you log on to the share register and it does not show that you hold the shares, you have problems.
If they hold the shares and go belly up, have lots of hope - and I would not rely on Australian law applying to an American company organised and established under the laws of the State of Connecticut.
Your choice, your risk.
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Judd,
I'm guessing you don't use IB then?
I'm guessing you don't use IB then?
