Interactive Brokers
- Thread starter MrMarcus
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Hi,
I recently set up an IB margin account, however, I am finding that it is very expensive to trade futures on this platform. The products I wanted to trade were:
CL - Crude Oil
ZB - Bonds
ES - Emini S&P
NQ - Nasdaq
YC - Corn
But they appear to be across 3 different exchanges, and each of those exchanges are $90 per month (i.e $270) for market data.
At the moment, I also trade Options ($25 per month) and also have basic data feed ($10 per month). Love the cheap brokerage, just does not seem feasible for futures trading - Am I missing something/doing something wrong?
I feel that as a retail investor with a small-mid sized account, that I will need to switch to TOS - only problem is, I'll need to keep my $ in USD. I might end up settling for two accounts...
I recently set up an IB margin account, however, I am finding that it is very expensive to trade futures on this platform. The products I wanted to trade were:
CL - Crude Oil
ZB - Bonds
ES - Emini S&P
NQ - Nasdaq
YC - Corn
But they appear to be across 3 different exchanges, and each of those exchanges are $90 per month (i.e $270) for market data.
At the moment, I also trade Options ($25 per month) and also have basic data feed ($10 per month). Love the cheap brokerage, just does not seem feasible for futures trading - Am I missing something/doing something wrong?
I feel that as a retail investor with a small-mid sized account, that I will need to switch to TOS - only problem is, I'll need to keep my $ in USD. I might end up settling for two accounts...
Hi figured it out. I was classified as a "Professional Subscriber". I've just put in a ticket to request to be re-classed as a "Non-Professional Subscriber". Hopefully that works, because costs will drop down heaps
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If I'm trading aussie equities End Of Day do I need to subscribe to live data?
My understanding is that I don't (I'm just going to be placing trade on open fwiw)
My understanding is that I don't (I'm just going to be placing trade on open fwiw)
tech/a
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tx duckman
prawn_86
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Probably a stupid question but cant find answer on the IB site.
Can one adjust a reg T margin account to trade without margin? Or do i simply adjust my position sizes if i want to do that?
Can one adjust a reg T margin account to trade without margin? Or do i simply adjust my position sizes if i want to do that?
tech/a
No Ordinary Duck
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Margin is currently not available for retail traders with IB
Unless your trading futures.
Hi tech/a,
So if I put money in IB and convert it to U.S, I can trade U.S futures on an individual account?
I hope that is the case! Because it would make things a lot easier for me
.
tech/a
No Ordinary Duck
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Hi tech/a,
So if I put money in IB and convert it to U.S, I can trade U.S futures on an individual account?
I hope that is the case! Because it would make things a lot easier for me
Pretty well
You have to nominate what you wish to trade initially in general terms
Then have sufficient margin for those contracts you wish to trade.
prawn_86
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I have a US based account with IB (with futures access) and when i am going to place a trade order it shows an initial margin.
tech/a
No Ordinary Duck
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Hmmm not sure about that.
Only thing I can think of is excess funds needed to trade that trade----???
As for a company setup---not sure.
Think they would need the usual 3 yrs figures etc??
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That's the margin requirement for the position but due to aussie margin loan restrictions, the system won't let you buy the stock unless you hold the cash for it so you will be well and truly within requirements.
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I have a full margin a/c running for years - it is a pty ltd company.
you can buy "off the shelf" but I suggest you use an accountant [who will do the same ;-)
I set my company / disc trust up through cleardocs a few years ago. If you don't understand, go to a few lawyers and ask a lot of questions until you're confident, then set one up online.
Not quite straightforward but not too complicated. Trust is better than a straight company because you can channel the profits to where you want, partner, kids, company, charity in any portion you want etc and take advantage of the lowest tax rate. A company is limited by shares.
IB require a corporate trustee with a trust to trade margin. A trust with a "person" trustee is still limited.
Not quite straightforward but not too complicated. Trust is better than a straight company because you can channel the profits to where you want, partner, kids, company, charity in any portion you want etc and take advantage of the lowest tax rate. A company is limited by shares.
IB require a corporate trustee with a trust to trade margin. A trust with a "person" trustee is still limited.
Dave could you tell us a little bit more about how this works? What sort of cost did it work out to be for you in getting the info and set up? As well as ongoing costs?
Appreciate it mate, certainly something I need to be a bit more seriously looking into
Due to recommendation am trying to open up a Interactive Brokers account. I'm a little stuck on the part where it asks for Certified Proof of Address and Identity. So they are just asking for the PoI and PoA that i uploaded earlier... with a JPs signature?
Setup costs. for the trust around $135. The company was around $1000, but i think it's around $480 now. A lot of time, but that's where you're saving $50 an hour for a lawyer to do it. It was about 10 years ago when i was running my own business, but i still check there from time to time.
I got the binded trust document sent out, went in to Births deaths and marriages in the city ( i think it's called something else now ), paid the $75 stamp duty for a stamp and viola new trust is born.
From there you register for ABN and TFN ( online ) for the trust and that's it. Cleardocs give good instructions anyway. Then you set up a bank account and you're done. IB requires another bank account in the trust name, it's one of their hurdles.
Ongoing costs. Extra accounting, a few hundred a year.
asic $275 annual company fee.
Benefits -
- You can stream trust income anywhere, you, spouse, kids, parents and if all else fails Company.
- MAX Highest tax rate is 27.5% ( Company ). SMSF is currently flat 15%.
- Money isn't locked in like super, no limit on contributions and you can get it out.
- The accounts and assets aren't in your name. You look poorer than you are EXECPT to the family law court.
Cons -
- Higher ongoing cost, about $600.
- WAY more complicated. Probably the same as a SMSF.
- You move into another category with the ATO. Sometimes it's not so pleasant.
For IB, i photocopied the certified trust schedule ( last page of the deed ) and the page with the stampduty stamp and they were happy with that and not the whole 65 page deed. You also have to have another trust bank account. I set one up with macquarie online.
All in all it's not hard, it's just a process. If you start now, you'll be geared up for next financial year.
Talk to your accountant or cleardocs. I did a lot of research and decided that It suits my needs.
** Disclaimer ... I'm just a simple electrician. I have no formal education in anything remotely intelligent OR accounting.
