Interactive Brokers

[pavilion103]

How many CFDs are their on Interactive Brokers?

I'm looking into their accounts which have better fees than CMC Markets, but I think I heard they have less CFDs. I'm concerned that this will restrict my ability to go short?

 

[Tanaka]

So, I submitted my application for an IB account. Main reason being I want to access futures. After answering questions regarding my trading experience (over 10 years of shares, 5 years of CFDs and 2 years of forex), at the end of the application they inform me I don't have enough experience with futures to trade them. they said I may be able to change it once account opened. I don't get it, they want me to use another futures broker for a couple years to gain experience or something?

 

[skc]

How many CFDs are their on Interactive Brokers?

I'm looking into their accounts which have better fees than CMC Markets, but I think I heard they have less CFDs. I'm concerned that this will restrict my ability to go short?

They don't have CFDs in the CMC sense. They only have ASX exchange traded CFDs which are illiquid as hell... in fact they are so illiquid they trade at a slight discount.

 

[Boggo]

They don't have CFDs in the CMC sense. They only have ASX exchange traded CFDs which are illiquid as hell... in fact they are so illiquid they trade at a slight discount.

I thought that these were going to be the bees knees, a possible replacement for Instalment Warrants etc.
I went to all the introduction seminars and even opened a seperate account just to trade them, all a waste of time.
The spreads are too wide, poor liquidity, no market until ages after the ASX opens and then the SFE rules regarding distance from last trade to your current trade kick in your order gets rejected so you have to ring the broker to override the SFE rule, meanwhile you are down 20% or too late to get on on a fast moving day.

I told them about all of these issues at one of their promo nights, they said they would look into it as they weren't aware that there was any problems !

The only thing that saved me a few times was that I could get straight though on the phone to the broker at Morrisons in seconds.

I gave them a fair run but gave up in frustration in the end.

 

[IFocus]

I thought that these were going to be the bees knees, a possible replacement for Instalment Warrants etc.
I went to all the introduction seminars and even opened a seperate account just to trade them, all a waste of time.
The spreads are too wide, poor liquidity, no market until ages after the ASX opens and then the SFE rules regarding distance from last trade to your current trade kick in your order gets rejected so you have to ring the broker to override the SFE rule, meanwhile you are down 20% or too late to get on on a fast moving day.

I told them about all of these issues at one of their promo nights, they said they would look into it as they weren't aware that there was any problems !

The only thing that saved me a few times was that I could get straight though on the phone to the broker at Morrisons in seconds.

I gave them a fair run but gave up in frustration in the end.

Market makers will all ways kill any semblance of a fair trading environment

 

[SuperGlue]

So, I submitted my application for an IB account. Main reason being I want to access futures. After answering questions regarding my trading experience (over 10 years of shares, 5 years of CFDs and 2 years of forex), at the end of the application they inform me I don't have enough experience with futures to trade them. they said I may be able to change it once account opened. I don't get it, they want me to use another futures broker for a couple years to gain experience or something?

Check this out. Don't know whether it still applies.


https://www.aussiestockforums.com/forums/showthread.php?t=10838&p=508145&viewfull=1#post508145

 

[Tanaka]

Check this out. Don't know whether it still applies.


https://www.aussiestockforums.com/forums/showthread.php?t=10838&p=508145&viewfull=1#post508145

Thanks for that, yep they made me do about 30 questions on forex got two wrong answers, they were trick questions, non of the questions had anything to do with how to trade and manage risk and were general questions about how forex works. a lot of questions were about settlement dates!

 

[SuperGlue]

Thanks for that, yep they made me do about 30 questions on forex got two wrong answers, they were trick questions, non of the questions had anything to do with how to trade and manage risk and were general questions about how forex works. a lot of questions were about settlement dates!

From memory one can do the test a number of times, till he/she passes the test on any instrument that is tradable.

Good luck

 

[skc]

I thought that these were going to be the bees knees, a possible replacement for Instalment Warrants etc.
I went to all the introduction seminars and even opened a seperate account just to trade them, all a waste of time.

So did I. I think I did like 3 trades with a new account and promptly closed it.

DMA CFDs were not as prevalent back then as they are now... so their only advantage of 'transparency' is completely voided.

 

[pavilion103]

So if I trade with IB I can't go short?

 

[toocool]

So if I trade with IB I can't go short?

On US stocks yes, on asx I dont think you can.

 

[IFocus]

So if I trade with IB I can't go short?

US market 14,000 stocks and ETF's to short sell

 

[pavilion103]

I'm currently using explorations in Amibroker to search for any stocks in the All Ords which meet my criteria.

Is it best for a beginner to stick to the Aussie market? or does it make no difference?

Or is it best to stick to 1 market regardless of whether its the US or Aussie?

 

[tech/a]

One market and learn how to trade.
The rest will still be there if you survive.

 

[lost872]

Not to sure if this is the place for tax questions but I need some advice from the users that have done tax in the US before.
I was reading the IRS.gov sight and found this:

"NOTE: If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States."

Here is the link: http://www.irs.gov/businesses/small/international/article/0,,id=96409,00.html

I'm just wondering if this will apply to me as all I do is trade in the US markets, not a big trader only made about US$250 so far.

Any help here would be good as I don't want the IRS after me.

Thanks in Advance.

lost872

 

[Tanaka]

I'm in no way trained in tax and I am not giving you tax advice. Seek a professional.

My basic understanding is you sign the W-8BEN form, which you would have done in the IB application. This form means that the IRS won't withhold tax from you. The U.S and Australia have a tax agreement, meaning you pay the tax in the country of your primary residency. If your main income and living is done in Australia, your U.S income is only needed by the ATO.

Please correct me if I am wrong, cause I could be in some deep water

 

[lost872]

Thanks Tanaka, that was what I was trying to get my head around.

 

[Perryt]

So if I trade with IB I can't go short?

Hi Pavillion,

Interactive Brokers is in the testing phase of going short on the ASX, it should be available very soon.

Cheers
Perry

 

[Tanaka]

Hi Pavillion,

Interactive Brokers is in the testing phase of going short on the ASX, it should be available very soon.

Cheers
Perry

Email received today from IB. We can start shorting ASX stocks from today!!!

 

[CamKawa]

Email received today from IB. We can start shorting ASX stocks from today!!!

That's a good thing, though it only covers 27 stocks so I'm not doing too many star jumps.