Interactive Brokers

[Leiothrix]

IB have for their minimum requirements "Prior execution of 100 or more trades (any product)"

Is that something that you actually have to prove? Or is it just a tick box?

 

[IFocus]

IB have for their minimum requirements "Prior execution of 100 or more trades (any product)"

Is that something that you actually have to prove? Or is it just a tick box?

Its just part if you like of their disclaimer when some one turns up blows $200K because they are a dill then try sue IB.

You don't have to provide proof

 

[yonnie]

hello folks,

commission for share trading is $ 6.00 up to a trade value of 7.5k

now IB is charging me $ 6.00 for every partial fill of the order, so if order is filled over 3 days, I pay $ 18.00.

I always thought the commission is $ 6.00 per order, regardless of the days taken to fill that order?

any comments appreciated.

 

[bellenuit]

hello folks,

commission for share trading is $ 6.00 up to a trade value of 7.5k

now IB is charging me $ 6.00 for every partial fill of the order, so if order is filled over 3 days, I pay $ 18.00.

I always thought the commission is $ 6.00 per order, regardless of the days taken to fill that order?

any comments appreciated.

I think they give some examples, I can't remember where, so I'll leave you to find, but from memory if the partial fills flow on to subsequent days, the unfilled balance is treated like a new order for commission calculation.

Commission is calculated once on all partial fills within the same day only. So if the commission on the total order would be $7.50 if filled in one trade, were it to require 2 trades within the same day, the commission would still be $7.50 for the total order. If over 2 days (50% each day say), it would be $6 each day.

 

[baxter]

hello folks,

commission for share trading is $ 6.00 up to a trade value of 7.5k

now IB is charging me $ 6.00 for every partial fill of the order, so if order is filled over 3 days, I pay $ 18.00.

I always thought the commission is $ 6.00 per order, regardless of the days taken to fill that order?

any comments appreciated.

Hi Yonnie,

I've noticed that too. Recently I was charged 3 separate commissions on an order that was part filled on each of 3 days. I didn't change the quantity or the price. This is different from over the past year or 2.

What I found is that if I left the order sitting unchanged, then often the brokerage would be only for a cumulative amount, even if it was hit over multiple days (sometimes even a week apart). Other times if I increased the quantity then I would be hit with a 2nd brokerage when that part of the trade transacted. If I moved an order to a different price level, there seemed to be no rhyme or reason as to whether I would get hit with a second brokerage - sometimes if it was on the same day it was a single brokerage, other times if it was the following day I would get charged a second brokerage - and sometimes not!

Overall it has been quite hit and miss. I queried it quite a while ago with multiple CSR's and got mainly the answer that I should be charged with a new brokerage each and every time I change the order (once part filled), and also if it is hit over multiple days. I knew this was not my experience, but so long as the status quo stayed the same (and for most of the time I wasn't paying multiple brokerages) I didn't want to follow it up too hard.

If you have a search for it, you'll find that there are a few disclaimers on the brokerage rates pages which outline their position that you will be charged multiple brokerages for each change, each order over separate days etc.

I don't have any of these problems any more though. I've moved all my Australian trading to FP Markets (trading DMA cfds) and it's been a world of difference. I have more than $50k in my account and so I don't pay iress fees, brokerage is 0.08% ($8 per $10,000) and no minimum trade. This is great, particularly if you trade on smaller stocks. Happy for you to PM me if you want further info. I might even get something for a referral

Cheers,
Baxter.

 

[bellenuit]

Commission is calculated once on all partial fills within the same day only. So if the commission on the total order would be $7.50 if filled in one trade, were it to require 2 trades within the same day, the commission would still be $7.50 for the total order. If over 2 days (50% each day say), it would be $6 each day.

found this in the notes pertaining to commissions......

Modified orders will be treated as the cancellation and replacement of an existing order with a new order. On certain exchanges, this may have the effect of subjecting modified orders to commission minimums as if they were new orders. For example, if an order for 200 shares is submitted and 100 shares execute, then you modify the order and another 100 shares execute, a commission minimum would be applied to both 100 share orders. Orders that persist overnight will be considered a new order for the purposes of determining order minimums.

https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks1

 

[yonnie]

thank you bellenuit and baxter for your replies. sorry for the late reply - I`ve been on holiday........

the description by baxter of the commission is my experience as well over more than 10 years: at first all orders filled over multiple days just the 1 brokerage of $ 6.00 - then slowly more orders charged multiple $ 6.00 brokerage over multiple fills - since last month all orders filled over multiple days $ 6.00 brokerage for each fill.

as I`m trading low value stock, I could be paying $ 48.00 to complete an order if that stock is illiquid.
this is all without changing price or volume, just the original order.

the big advantage of IB for me is that if I place pending orders to the tune of $ 1 mil, I dont need to have all that money in my account. 50k would do it. Ofcourse once those penny stocks are filled, the money got to be there.

I don't think you have other brokers like that here.

 

[lejmorro]

Hi Baxter

Nice to read your comments ....

my story is that since the fiasco in IB Australia accounts I have taken a rest from trading but am now ready to go back in but of course the IB fiasco is unending ......

so interested in FP Markets which is new to me and their blurb on counterparty risk seems promising. Would you say their counterparty risk is about the same as IB? I used to do some CFD's with IG but lost interest as my main area was Korean options on IB (which got blown away with the new restrictions). Would you be able to compare FP with IG?

Anyway, thanks for the heads up, best wishes and good trading, Lejmorro

 

[lejmorro]

This is exactly the same quote IB was issuing 9 months previously in August 2013. What a joke!

I emailed them today about it. This is their response:

Unfortunately, IB is unable to offer margin lending to Australian clients at the moment. We hope to have this resolved as soon as possible and to provide margin lending service to our Australian customers again. We will notify our customers once ASIC allows us to remove the restriction from Australian accounts. We anticipate that this may be possible in a 4-6 month time frame but we are unable to predict this with a certainty.​

 

[VSntchr]

I think your questions would be answered if you took 5 mins to have a look over their website....

CLIENT MONEY & HEDGING

As a client of FP Markets, all your client monies are deposited into trust accounts with banks within Australia. We hedge 100% of client positions, run no proprietary positions, are Australian owned and are regulated by the Australian Securities and Investment Commission (ASIC).

Before you spark up at SKC, realise that he is most probably asking these questions to ensure that you have taken the necessary precautions before placing funds with the broker.
Whilst FP hedges client positions - you must understand that counter-party risk with this broker is much higher than providers such as IG due to the fact that they use client money for the hedging of these positions.

I have an account with FP but utilise it mainly to get access to WebIress and additional stocks which are not offered on some other platforms..however the counter-party risk is playing in my mind and I will probably not have funds with them for too much longer. Just my opinion and of course they may never have any problems...

 

[Azimuth]

---

Hi, I wonder if anyone can shed light on the t+3 rule with stocks.

Does this mean that there is effectively no way to trade a one day hold stock trading system on interactive brokers?

E.g if I want to use 100% of my account and since I will have to wait 3 days for funds to settle, I will only be able to trade one in every four(?) days?

Cheers

 

[tech/a]

---

Hi, I wonder if anyone can shed light on the t+3 rule with stocks.

Does this mean that there is effectively no way to trade a one day hold stock trading system on interactive brokers?

E.g if I want to use 100% of my account and since I will have to wait 3 days for funds to settle, I will only be able to trade one in every four(?) days?

Cheers

Nah

I trade intra day all the time.

 

[Azimuth]

Nah

I trade intra day all the time.

Thanks tech. I'll give them a call and try to figure out whats going on with my trades.

Did you have to set up any special account... margin/company etc? Or just the standard individual cash account.

Cheers

 

[tech/a]

Thanks tech. I'll give them a call and try to figure out whats going on with my trades.

Did you have to set up any special account... margin/company etc? Or just the standard individual cash account.

Cheers

No As long as I didn't exceed my capital balance
I can buy and sell all day long.

Often 3-5 x my capital base on daily T/Over.

 

[geeroy]

Have to wait T+3 with IB cash account, they consider it a loan otherwise

 

[Azimuth]

No As long as I didn't exceed my capital balance
I can buy and sell all day long.

Often 3-5 x my capital base on daily T/Over.

Cheers,

Do you always sell before the end of the day?

Just spoke to them... I think when you hold overnight and sell the following morning, you need to wait 3 days for settlement. Which is a huge pain.

It means I can't use IB for my current system until they sort out licence issues (they said end of the year). UGH!

 

[tech/a]

Cheers,

Do you always sell before the end of the day?

Just spoke to them... I think when you hold overnight and sell the following morning, you need to wait 3 days for settlement. Which is a huge pain.

It means I can't use IB for my current system until they sort out licence issues (they said end of the year). UGH!

Maybe different for futures
But when I traded stock I never had a problem
Then I had 2xmargin which will be back soon.

But even so if I had $20 k
Bought BHP today and sold it at 10 then bought at 11 then sold 12 then bought at 1 sold at close
That's 60k turn over
I'm sure you don't have to wait!

 

[Azimuth]

Maybe different for futures
But when I traded stock I never had a problem
Then I had 2xmargin which will be back soon.

But even so if I had $20 k
Bought BHP today and sold it at 10 then bought at 11 then sold 12 then bought at 1 sold at close
That's 60k turn over
I'm sure you don't have to wait!

I was shocked they said you have to wait too. Explains why I was getting insufficient cash errors despite the my cash balance being 300% of trade value (but hadn't reached settlement time yet).

This seems to rules out a whole group of traders who would otherwise use IB.

If anyone has work arounds I'm all ears.

 

[VSntchr]

Question for those using interactive brokers - Are the minimum balances required to be held in cash at all times? Or does stock also count?

For instance can I have an account with $0 cash and $50k worth of stock? Or do I need $10k cash and $50k of stock....

 

[cutz]

Hi VSntchr,

Doesn't matter, stock or cash is fine.

More importantly, keep you margins within limits, personally I like to have plenty of cushion.