Interactive Brokers

Boggo · 21 September 2013

ftw129 said:
ThinkOrSwim decided to shut down all Aussie accounts about a year ago and never provided much more info other than "TD Ameritrade made a business decision based on an internal, objective risk assessment. Due to confidentiality needs, we are unable to provide further details."

OptionsXpress shut down Aussie accounts just after the onset of the GST....

Could this IB issue possibly end with the same fate?

Why is Australian data so expensive and so much more complicated for data providers than the rest of the world ?

ftw129 · 21 September 2013

Oops, I clearly meant the onset of the GFC not GST!....

The fruits of the Coonawarra having an influence on my typing there... The 2001 vintage is particularly good I must say

Happy2be · 21 September 2013

This whole sad and sorry affair with IB and ASIC started for me back in early July 2013 when I was only able to re-open an old closed account as "cash only" and has now affected my normal IB account. Whilst I never technically used margin at all, it was the convenience it provided in not having to wait for the t+3 clearance time before I could place another trade.
Now as I slowly become more and more annoyed at this whole load of garbage, can anyone realistically give an accurate answer as to which alternative broker one might use to trade US stocks short term whilst still holding aussie dollars as the base currency in the way IB do?

Signed
Increasingly Disgruntled.

bellenuit · 21 September 2013

ftw129 said:
ThinkOrSwim decided to shut down all Aussie accounts about a year ago and never provided much more info other than "TD Ameritrade made a business decision based on an internal, objective risk assessment. Due to confidentiality needs, we are unable to provide further details."

OptionsXpress shut down Aussie accounts just after the onset of the GFC....

Could this IB issue possibly end with the same fate?

I was a TD Ameritrade customer at the time and had to transfer all my assets at short notice. Luckily it only involved my US shares which were not bought on margin and as I already had an account open with IB, it wasn't a huge problem. I don't want to do that again as none of the others come even close to IB's lending and commission rates.

DU Trader · 22 September 2013

Happy2be said:
This whole sad and sorry affair with IB and ASIC started for me back in early July 2013 when I was only able to re-open an old closed account as "cash only" and has now affected my normal IB account. Whilst I never technically used margin at all, it was the convenience it provided in not having to wait for the t+3 clearance time before I could place another trade.
Now as I slowly become more and more annoyed at this whole load of garbage, can anyone realistically give an accurate answer as to which alternative broker one might use to trade US stocks short term whilst still holding aussie dollars as the base currency in the way IB do?

Signed
Increasingly Disgruntled.

looks like this whole fiasco is heating up http://globenewswire.com/news-relea...gin-Trading-With-Interactive-Brokers-LLC.html

hawamahal · 22 September 2013

DU Trader said:
looks like this whole fiasco is heating up http://globenewswire.com/news-relea...gin-Trading-With-Interactive-Brokers-LLC.html

That's an interesting news story. What are these lawyers trying to do. Make money out of IB.

tech/a · 22 September 2013

Happy2be

Your kidding me.
You don't have to wait 3 days before you can tak another trade!

Bloody hell Ive traded 100s os 1000s over my capital base on a daily basis.
What are you going on with?

Happy2be · 22 September 2013

tech/a said:
Happy2be

Your kidding me.
You don't have to wait 3 days before you can tak another trade!

Bloody hell Ive traded 100s os 1000s over my capital base on a daily basis.
What are you going on with?

Hi Tech,

That is interesting to hear, I shall keep it in mind.

I should have clarified, I have a reg-t account with IB and it has to do with the current Margin issue with Interactive Brokers whereby I am blocked by IB in submitting another trade until other trade funds are cleared. As you would expect, this is occuring close to my Capital limit. To alleviate this I have temporarily added more capital to cover the t+3 whilst this Margin issue is sorted.
Before this all started I didn't use margin unless I was buying the same day as I was selling and I temporarily went over my capital limit.

OZ Trade · 22 September 2013

DU Trader said:
looks like this whole fiasco is heating up http://globenewswire.com/news-relea...gin-Trading-With-Interactive-Brokers-LLC.html

Look out.. the bloodsuckers are onto it..

This whole red tape thing pisses me off.. they provided the best discount brokerage service with margin to Aussies but we have to spit in their face now don't we

If anyone is looking for a a descent interim broker to trade US equites, US Futures and the FX market I can vouch for MB Trading.. it is a US dollar only based account but its easy enough to open a long AUD/USD position to hedge against movement in the pair

Flat rate of $5 bucks per trade on equities, $2 for FX and futures with great fills on all. spreads on any pairs other EUR/USD and USD/JPY are pretty lacklustre though, for scalping anyway

Crossing my fingers for a good outcome with IB..

Dont join the lawsuit!

Judd · 22 September 2013

OZ Trade said:
Look out.. the bloodsuckers are onto it.........

Depends on who or what is defined as a bloodsucker.

If you ever by chance, and God forbid you do, read the entire Storm Financial thread, it will become apparent that claims were made margin loans were very complicated and provided to those who could not, allegedly, understand the full ramifications.

As a consequence of submissions, made to the Ripoll Inquiry, referring to these matters, the final report concluded that arrangements surrounding the provisions of margin loans were required to be tightened. Those recommendations were accepted and adopted by the relevant authorities and, hence, the situation with Interactive Brokers. In other words, ASIC is, surprisingly, doing a task it is required to do. And some law firms are picking up on this aspect where providers afford their clients margin loans.

Now the challenge and it is a difficult one. Define who or what are the bloodsuckers? Think carefully and deeply mind you.

geeroy · 22 September 2013

tech/a said:
Happy2be

Your kidding me.
You don't have to wait 3 days before you can tak another trade!

Bloody hell Ive traded 100s os 1000s over my capital base on a daily basis.
What are you going on with?

looks like that is the way a cash account works http://ibkb.interactivebrokers.com/article/814
certainly hope IB dont want the rest of us to move to that account type if they cant sort out this margin mess...

So_Cynical · 22 September 2013

Judd said:
Now the challenge and it is a difficult one. Define who or what are the bloodsuckers? Think carefully and deeply mind you.

The law industry are bloodsuckers...about 0.003 seconds of deep and careful thought needed.

Chilli · 22 September 2013

DU Trader said:
looks like this whole fiasco is heating up http://globenewswire.com/news-relea...gin-Trading-With-Interactive-Brokers-LLC.html

Most of us waived our right to take any action against IB when we chose to keep our accounts open, whilst agreeing not to pursue any legal recourse. There seems to be a conspiracy against Australian customers who always seem to get charged over the odds for everything. Our trading costs are crazy compared to US. It's interesting that IB's trading practices are perfectly acceptable to US and UK regulators, but not good enough for Australia. https://www.aussiestockforums.com/forums/images/smilies/banghead.gif

OZ Trade · 22 September 2013

Judd said:
Depends on who or what is defined as a bloodsucker.

If you ever by chance, and God forbid you do, read the entire Storm Financial thread, it will become apparent that claims were made margin loans were very complicated and provided to those who could not, allegedly, understand the full ramifications.

As a consequence of submissions, made to the Ripoll Inquiry, referring to these matters, the final report concluded that arrangements surrounding the provisions of margin loans were required to be tightened. Those recommendations were accepted and adopted by the relevant authorities and, hence, the situation with Interactive Brokers. In other words, ASIC is, surprisingly, doing a task it is required to do. And some law firms are picking up on this aspect where providers afford their clients margin loans.

Now the challenge and it is a difficult one. Define who or what are the bloodsuckers? Think carefully and deeply mind you.

I do know a bit about Storm being from NQ.. lets not compare apples with oranges though.. Storm was a financial adviser/investment fund and IB is a discount international electronic broker..

I'm not taking a shot at the entire legal profession either, just these litigations where they're encouraging people who made fair and square bad trades to try and get all their losses back based on a licensing glitch.. looking for a short term benefit for themselves that ruins the availability of services for everyone else in the future. Adds extra fees, insurance costs and so on so forth

I think the whole case may be flawed anyhow.. I read in one of the earlier links that ASIC gave IB the green light for margin lending in 2010 and only recently changed their tack on the issue

DU Trader · 23 September 2013

OZ Trade said:
.. I read in one of the earlier links that ASIC gave IB the green light for margin lending in 2010 and only recently changed their tack on the issue

yet in this article there is an alternate explanation from IB suggesting it was IB executives that decided they didn't need the license back in 2010
http://www.smh.com.au/business/lice...-us-brokers-loans-dealing-20130827-2sobs.html

but if ASIC is culpable here, then they shouldn't suggest IB clients seek legal advice

seems like three outcomes are possible. IB can change their margin call policy, ASIC can change theirs, or IB can go to cash-only in Australia

OZ Trade · 23 September 2013

We were advised [in 2010] by senior compliance [that] because IB is a US firm and [given] the design of our margin trading platform … [that] we were not required to obtain an additional licence by ASIC in order to give margin accounts,'' Mr Friedland said.

''But ASIC has now advised us that we should obtain this variation to our licence in order to continue to offer margin lending, so we've filed an application … and until this is granted we've agreed to voluntary limit any margin lending to people in Australia

ASIC said its inquiries into IB were continuing and it had ''no further comment'' at this stage.
When the rule regarding margin loans was changed in 2010, issuers and advisers of margin lending facilities were asked to apply for an Australian Financial Services licence, or a variation to an existing licence. They had from February 1, 2010, until June 30, 2010, to do so.

----------------------------------------------------------------------

Looks like there might be a stouch over what was agreed on between ASIC and IB in 2010 about the changes.

Hopefully Friedland has confirmation in writing from ASIC about them not having to obtain an additional license being US based.. otherwise you'd have to think that IB is in a bit trouble here, and traders would indeed be eligible to claim back any losses and fees associated with margin accounts between 2010 and the recent closure of margin facilities.

Have to wait and see how it all shakes out.

merlinnn · 25 September 2013

On another IB issue, I am curious as to how many people here use them to trade Aussie Shares and are they useful when trading the small ordinaries or can you only trade the ASX200 etc?

bellenuit · 25 September 2013

merlinnn said:
On another IB issue, I am curious as to how many people here use them to trade Aussie Shares and are they useful when trading the small ordinaries or can you only trade the ASX200 etc?

I trade Aussie as well as US stocks with IB. I trade some small caps (HFA and VXR) so I don't think there is any restriction on who you can trade (probably the same limitations as any other Aussie broker). They are certainly useful as their commission is just 0.08% of trade value, with a $6 minimum. That allows you to trade up to $7500 for $6 only.

So_Cynical · 25 September 2013

merlinnn said:
On another IB issue, I am curious as to how many people here use them to trade Aussie Shares and are they useful when trading the small ordinaries or can you only trade the ASX200 etc?

Dude seriously, you can trade almost anything, anywhere.

https://www.interactivebrokers.com/en/index.php?f=products&p=asia_stk

https://www.interactivebrokers.com/...=asx&showcategories=STK&ib_entity=llc

merlinnn · 25 September 2013

Thanks for that, I was concerned I wouldn't get filled on the small caps which I mainly trade at the moment. I currently use them for US shares and their brokerage fees are exceptional in that market, however I did notice their data fees for the ASX are $55.00 per month???

Interactive Brokers

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ftw129

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Happy2be

bellenuit

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tech/a

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Happy2be

OZ Trade

Judd

geeroy

So_Cynical

The Contrarian Averager

Chilli

OZ Trade

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OZ Trade

merlinnn

bellenuit

So_Cynical

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