Interactive Brokers
- Thread starter MrMarcus
- Start date
-
- Tags
- interactive brokers
- Joined
- 21 May 2008
- Posts
- 664
- Reactions
- 14
Zegna asked "how do Aust. share transactions and cash managment work without Chess and bank accounts?"
Replies were:
1) They don't. Its a fully funded account that earns interest.
2) Like they do in ever other market around the world except in Australia.
I understand they don't issue notices etc. So am I correct in assuming you keep your own records? Still have to contact IB themselves, but I would appreciate a bit more info to help direct my questions.
Read the diclosures and the mention of clearing houses etc.
Thanks
Replies were:
1) They don't. Its a fully funded account that earns interest.
2) Like they do in ever other market around the world except in Australia.
I understand they don't issue notices etc. So am I correct in assuming you keep your own records? Still have to contact IB themselves, but I would appreciate a bit more info to help direct my questions.
Read the diclosures and the mention of clearing houses etc.
Thanks
Or, you can have USD in your account as well and trade US stocks with them
But, if i bought $USD at 72cts in the dollar to trade US stocks, and then converted back to $AUD after the Aussie dollar sank against the USD, i would be losing out.
Surely, if you converted AUD to trade US stocks and the AUD sank, you would be in trouble, ie, your funds would have gone down and you'd be stuck with a whole lot of depreciated capital?
How would you combat this problem? (apart from waiting)
- Joined
- 10 August 2008
- Posts
- 2,136
- Reactions
- 315
You can have $AUD sitting in your account earning 2.675% then you borrow the $US equivalent to fund your US stock purchase paying 1.65% interest.
So the only time you need to do a currency trade is when you sweep your $US dollar profits into your $AUD base currency (assuming trading goes according to plan).
Thanks Cutz.
I just thought: if the funds are swept back straight away, after the trade, then there wouldn't be much descrepancy between the AUD and USD? Therefore alleviating the concern for fluctuating value between the currencies?
I hope i am interpreting your post correctly?!
(thanks for taking the time to answer it, it helps me out immensely).
- Joined
- 24 October 2005
- Posts
- 1,302
- Reactions
- 834
Here's some info on how IB holds your funds.
http://www.interactivebrokers.com/en/general/education/faqs/safetyFAQ.php?ib_entity=llc#3
- Joined
- 10 August 2008
- Posts
- 2,136
- Reactions
- 315
Hi Aussiest,
I’m under the impression that you expose yourself to currency risk by buying foreign assets using Australian currency. Borrowing foreign currency seems to get around this problem. In theory you don’t need to sweep your US profits into your base currency, it can remain as a $US credit in your account, obviously it will be affected by fluctuations between $US/$AUD but not to the extent of actually converting $AUD into $US for the purpose of buying US stock.
I’m no currency expert so if anyone has noted flaws in my comments feel free to correct.
BTW. Personally i'm not to concerned about citibank, apparently it's only used as a conduit of funds.
Thanks once again Cutz. Am currently researching IB. I read the "conduit" thing on their website.
Does this mean the money is channelled through Citibank to other banks? That's strange, you'd think they'd hang on to some of it.
Anyhow, it all seems to be on the up & up at IB. Just a matter of seeing how Citibank goes, but then again, it says on the IB website that "cash and securities held in IB securities accounts are protected by SIPC, coverage of up to 500k per customer". Interesting. I wonder how one would go about claiming their funds should something go wrong
- Joined
- 9 July 2006
- Posts
- 5,948
- Reactions
- 1,613
l'm looking at going to IB in a few months myself.
The broker who l use at the moment is charging me an arm and a leg. Just have to wait for a few circumstances to change before l can make the switch. $6 per side on a trade is very cheap. Goes to show how much profit all the other brokers are making.
The broker who l use at the moment is charging me an arm and a leg. Just have to wait for a few circumstances to change before l can make the switch. $6 per side on a trade is very cheap. Goes to show how much profit all the other brokers are making.
Getting ASX shares on IB platform?
Thanks Captain Black. Having a look now.
New question:
How do you populate the IB trading platform with ASX shares, Indices, and Futures?
What are the spreads for Indices and oil and gold futures like? (perhaps i can find elsewhere on the forum)?
I am currently demo-ing the platform and it only has EU & US stocks, and options on it. Have looked in the FAQs, sent an email to IB, but have not heard.
I really need to demo it in ASX listed shares & Indices (and preferably Futures).
Thanks Captain Black. Having a look now.
New question:
How do you populate the IB trading platform with ASX shares, Indices, and Futures?
What are the spreads for Indices and oil and gold futures like? (perhaps i can find elsewhere on the forum)?
I am currently demo-ing the platform and it only has EU & US stocks, and options on it. Have looked in the FAQs, sent an email to IB, but have not heard.
I really need to demo it in ASX listed shares & Indices (and preferably Futures).
Trembling Hand
Can be found on the bid
- Joined
- 10 June 2007
- Posts
- 8,852
- Reactions
- 205
Re: Getting ASX shares on IB platform?
Aussiest You seemed to be a little lost as to how futs work. the spread has nothing to do with IB.
Aussiest You seemed to be a little lost as to how futs work. the spread has nothing to do with IB.
If you take a look at futures, forex, options or US stocks, you'll find that $6 and 0.08% is very expensive!
Re: Getting ASX shares on IB platform?
Hi Aussie,
The demo doesn't have ASX securities available. I wanted to do the same.
I still went ahead and opened an account (hell, I can always close it again!) and subscribed to the ASX data (optional).
So far I am VERY impressed with IB. I am still "moving" between BellDirect and IB but IB is streets ahead in every aspect. Using the BD platform (of which I used to be a fan!) seems like walking in mud comparatively.
I have a question for the IB veterans...some of the stocks that I have on the TWS screen have a green background on the Volume column. Currently PLA has it...what does this mean?
Cheers,
A.
Hi Aussie,
The demo doesn't have ASX securities available. I wanted to do the same.
I still went ahead and opened an account (hell, I can always close it again!) and subscribed to the ASX data (optional).
So far I am VERY impressed with IB. I am still "moving" between BellDirect and IB but IB is streets ahead in every aspect. Using the BD platform (of which I used to be a fan!) seems like walking in mud comparatively.
I have a question for the IB veterans...some of the stocks that I have on the TWS screen have a green background on the Volume column. Currently PLA has it...what does this mean?
Cheers,
A.
- Joined
- 10 August 2008
- Posts
- 2,136
- Reactions
- 315
Re: Getting ASX shares on IB platform?
G'Day Aussiest,
If you want to papertrade the ASX you need to open an account and fund it plus subscribe to ASX data, I think the intent of the demo is demonstrate the beauty of the platform and get the hang of order entry.
G'Day Aussiest,
If you want to papertrade the ASX you need to open an account and fund it plus subscribe to ASX data, I think the intent of the demo is demonstrate the beauty of the platform and get the hang of order entry.
Re: Getting ASX shares on IB platform?
Yes, i probably am a little lost.
On IG for Gold, it has the "sell" price as $870.1 and a "buy" price of $871.00.
Wouldn't this mean the spread is $0.9?
Whereas on another site i am demo-ing, the sell price for Gold is $869.62 and the buy price is $870.35, thus making the difference between the sell and buy $0.73.
*I thought the spread was the difference between the buy and sell price??
Yes, i probably am a little lost
.On IG for Gold, it has the "sell" price as $870.1 and a "buy" price of $871.00.
Wouldn't this mean the spread is $0.9?
Whereas on another site i am demo-ing, the sell price for Gold is $869.62 and the buy price is $870.35, thus making the difference between the sell and buy $0.73.
*I thought the spread was the difference between the buy and sell price??
Trembling Hand
Can be found on the bid
- Joined
- 10 June 2007
- Posts
- 8,852
- Reactions
- 205
Re: Getting ASX shares on IB platform?
My point is with a bucket shop they set the spread.
With Futures TRADERS set the spread. Its not fixed. Its a market.
Yes, i probably am a little lost
On IG for Gold, it has the "sell" price as $870.1 and a "buy" price of $871.00.
Wouldn't this mean the spread is $0.9?
Whereas on another site i am demo-ing, the sell price for Gold is $869.62 and the buy price is $870.35, thus making the difference between the sell and buy $0.73.
*I thought the spread was the difference between the buy and sell price??
My point is with a bucket shop they set the spread.
With Futures TRADERS set the spread. Its not fixed. Its a market.
$6.00 is cheap! What do you mean $6.00 and 0.08% are expensive? Can you give us an example of a broker that charges less? (not that cost is everything)
