Interactive Brokers

[Perryt]

Hi Perry,

Thanks for the confirmation on contract commissions...

As IB has never had a minimum before for Aussie options, could you explain how it works?

For example, if I put in an order for 50 BHP options (now with 100 shares per contract - would have been an order of 5 previously) and say only 15 are taken. I now have 35 left and need to adjust the price due to market movement. Does this mean a new order with IB and another $2 minimum?

Or is there just one $2 minimum per order even if order price is adjusted on unfilled quantity?

If the unfilled quantity is cancelled and re-ordered, is that definitely a new $2 minimum? This would also be the case at the end of the day as I understand that all option orders are purged from the system - can you confirm?

And I can't find it anywhere, but are index options such as the XJO remaining the same with the $10 multiplier?

As brokers can vary in brokerage policies, any information you can give on the above questions would be much appreciated.

Hi Sails,

Yes, we do have a minimum per order of 2 AUD and if you modify the price it would be considered a new order and thus a 2 AUD fee. Of course if you’re trading more than 6 contracts at a time (which is fewer shares than the previous contact size of 1), you’re still better off with this new fee structure.

But do note:

1. For a 10 lot (which would be the equivalent size under the previous multiplier), the fee would be .30 x10 = $3 AUD which is equal to what we were previously charging.
2. As far as I can tell, other brokers have NOT reduced their minimum fees per order which means we are still the lowest cost broker for options at any size.
3. The exchange did not change XJO’s or other index option multipliers. We however, lowered our fee for XJO in the hopes to attract more active traders to IB !

Please let me know if any of the above is not clear or you have other questions.

Cheers
Perry
IB Sales Rep

 

[sails]

Hi Sails,

Yes, we do have a minimum per order of 2 AUD and if you modify the price it would be considered a new order and thus a 2 AUD fee. Of course if you’re trading more than 6 contracts at a time (which is fewer shares than the previous contact size of 1), you’re still better off with this new fee structure....

Thanks again for the detailed reply, Perry.

I guess the biggest nuisance factor is if you have an order of 10 or 1,000 and someone comes along and picks off just 2 or 3 of your contracts. Price moves, so you want to adjust your order price.

Can the "all or none" be used with options to prevent the above happening? At least the orders could be put in 7 or 10 at a time to stop tiny orders nibbling at the order while still keeping brokerage about the same.

I agree, IB is still the cheapest and I think you will continue to attract customers from some of our stubborn brokerages in Australia who seem to think they can charge the earth and get away with it.

However, I am nervous with written options with IB as I only keep a small acount. The first ten minutes of the day is often not enough time (MMs are not always quoting by then) to re-adjust positions if assigned on a written stock option.

It's good the ASX has left index options alone as they are certainly the best for trading and your drop in fees is very welcome.... Liquidity has picked up enormously over the last few years (but still a long way from US index options...lol) and no risk of surprise assignment.

 

[Perryt]

Thanks again for the detailed reply, Perry.

Can the "all or none" be used with options to prevent the above happening? At least the orders could be put in 7 or 10 at a time to stop tiny orders nibbling at the order while still keeping brokerage about the same.

Hi Sails,

Unfortunately the All or None order type cannot be used on ASX options.

Cheers
Perry
IB Sales Rep

 

[sails]

Hi Sails,

Unfortunately the All or None order type cannot be used on ASX options.

Cheers
Perry
IB Sales Rep

Thanks for the reply, Perry.

 

[darkerdragon]

Hi Perry, got a few questions regarding IB.

1. How to get full market depth? Mine only show up first 5 lines of bid and ask in depth and book trader for all products with and without market data.

2. I want to setup a secondary account from my main account using same funds (corporate account), but with limitation of available funds and seperate P/L calculations. How do I do that?

3. Any chance to lift the "dump" & "chase" (bypass market cap) limits on an order for penny stocks? I'm relunctant to trade pennies on IB because I have problems buying and selling above/below market price. Some of the protections in place is ridiculous!
For example: A share trading at 0.1c that has a low liquidity, it won't let me dump into the 0.097 bids.

 

[darkerdragon]

"2. I want to setup a secondary account from my main account using same funds (corporate account), but with limitation of available funds and seperate P/L calculations. How do I do that?"

Never mind this, resolved.

 

[Perryt]

Hi Perry, got a few questions regarding IB.

1. How to get full market depth? Mine only show up first 5 lines of bid and ask in depth and book trader for all products with and without market data.

2. I want to setup a secondary account from my main account using same funds (corporate account), but with limitation of available funds and seperate P/L calculations. How do I do that?

3. Any chance to lift the "dump" & "chase" (bypass market cap) limits on an order for penny stocks? I'm relunctant to trade pennies on IB because I have problems buying and selling above/below market price. Some of the protections in place is ridiculous!
For example: A share trading at 0.1c that has a low liquidity, it won't let me dump into the 0.097 bids.

Hi Darkerdragon,

1. For booktrader to show the available market depths, you will need to subscribe to real time market data. You cannot access market depth without real time market data.

2. You can contact myself for the account opening structure.

3. There is no way in bypassing this function.

Cheers
Perry
IB Sales Rep

 

[darkerdragon]

1. For booktrader to show the available market depths, you will need to subscribe to real time market data. You cannot access market depth without real time market data.

I have real time market data, still only show 5 lines in depth and booktrader.

 

[paulchow2k]

I have real time market data, still only show 5 lines in depth and booktrader.

Ib only shows 5 lines. You need to use another data feed such as Paritech pulse for pre and post market auction plus the total market depth.

I only use ib on position trades and other platforms from scalping.

Paul

 

[ROE]

I am applying for IB account
All my holding are under a company name paying gst and tax in Australia

What should I answer for this question? (yes)?

Are you a limited company treated as a corporation (or US tax equivalent)?

 

[Happy2be]

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

Sounds like very sound advice to me.

 

[Happy2be]

Hi Everyone

I heard a while ago that IB where looking at setting up and using HIN's for Australian clients.

Is this the case and what is the current status?

Couldn't find anything on IB about it.

Also does anyone know how to find out the current interest rate on their bank account in Sydney for the excess funds?

 

[Happy2be]

Me again

I found the info about Aussie interest rates but am still curious about the HIN Situation in Australia for IB Users in OZ.

 

[Perryt]

Me again

I found the info about Aussie interest rates but am still curious about the HIN Situation in Australia for IB Users in OZ.

Hi Happy2be,

We are focusing on our attention on Australian products.
Adding 200 stocks to our shorting list, fixing up franking/ tax issues, and working on the HIN is part of the agenda in 2011. I dont have a time frame on when it will be completed, however once i have more of an insight on the issue, i'll let you know.

regards
Perry
IB Sales Rep

 

[toocool]

Hi,

A quick question, since this is my first tax year with trading with IB, what report/form will I need to print off for my tax return this year ??

regards todd

 

[ROE]

Hi Happy2be,

We are focusing on our attention on Australian products.
Adding 200 stocks to our shorting list, fixing up franking/ tax issues, and working on the HIN is part of the agenda in 2011. I dont have a time frame on when it will be completed, however once i have more of an insight on the issue, i'll let you know.

regards
Perry
IB Sales Rep

Once this is up and running can you keep the same HIN in comsec and just transfer the CHESS sponsorship to IB ?

I will go and finished up my application but wont do anything until HIN is up and running

 

[IFocus]

Hi Happy2be,

We are focusing on our attention on Australian products.
Adding 200 stocks to our shorting list, fixing up franking/ tax issues, and working on the HIN is part of the agenda in 2011. I dont have a time frame on when it will be completed, however once i have more of an insight on the issue, i'll let you know.

regards
Perry
IB Sales Rep

Perry I think the HIN issue is keeping many SMSF (Self Managed Superfund's)from using your services as its an audit problem for many.

Sort this out and I would suspect you will certainly attract a lot more retain business.

 

[ROE]

Perry I think the HIN issue is keeping many SMSF (Self Managed Superfund's)from using your services as its an audit problem for many.

Sort this out and I would suspect you will certainly attract a lot more retain business.

here here, I got three accounts I want to go into IB once HIN is sorted out else too much of hassle and risk for me to move otherwise

I play around with the platform while I wait for the HIN setup

 

[Happy2be]

Hi Happy2be,

We are focusing on our attention on Australian products.
Adding 200 stocks to our shorting list, fixing up franking/ tax issues, and working on the HIN is part of the agenda in 2011. I dont have a time frame on when it will be completed, however once i have more of an insight on the issue, i'll let you know.

regards
Perry
IB Sales Rep

Ok! Thanks Perry for the reply.

It will be the icing on the cake when the HIN thing gets sorted.

 

[hawamahal]

Hi guys, question to anyone using margin lending with IB. I am interested in getting a margin loan for US and Aus. stocks. Do they have a list of ASX stocks for which they allow margin and what LVR. I tried to find on their website, could not find anything.