Interactive Brokers

[ezmash]

Can anyone recommend good online brokers I can use to day trade US penny stocks (preferably with the ability to short sell)? Hubby and I are both new to stock market and only have a small amount to start with.

We have a trust with corporate trustee setup, and plan to use separate trading accounts. Later in the year we'll be setting up a SMSF with a similar structure, and at that time we can consider brokers with higher startup values.

ETrade don't allow short selling and don't list penny stocks, and their global figures are only updated on a daily basis, which isn't idea for day trading.

Plus500 is questionable.

SureTrader seems okay and their DASTrader interface seems fairly easy to use, but I get the feeling they're not as popular now as they were a few years ago. Anyone have any experience with them? They require two forms of photo ID and I only have one - not sure if that's a dealbreaker.

Everything else I've found so far is either too-high initial funding requirements, no short selling, or doesn't offer global stocks.

 

[ezmash]

I'm sorry ... I think I've posted that question in the wrong place, and now I can't edit it. I thought this was a thread for International Brokers!

Can it please be moved to a more appropriate area? (I HAVE considered IB, but their 30K limit is too high for our pre-SMSF trading)

 

[Trade wind]

Just got a message from IB telling me that SFE data is no longer free as of 1 June 2015 and they are going to start charging $65/month for ASX24 derivatives data. What the? Looking through the ASX site I can find no reference to data fee increases and this appears to be fee gouging from IB plain and simple. I trade the SPI irregularly and this is a deal breaker for me.

 

[tech/a]

Just got a message from IB telling me that SFE data is no longer free as of 1 June 2015 and they are going to start charging $65/month for ASX24 derivatives data. What the? Looking through the ASX site I can find no reference to data fee increases and this appears to be fee gouging from IB plain and simple. I trade the SPI irregularly and this is a deal breaker for me.

3 Ticks a month---deal breaker---hmmm.

 

[Trade wind]

3 Ticks a month---deal breaker---hmmm.

Yeah, I'm sick of them. Lousy service, lousy data, crap software, non-Chess stock trades, and their only real selling point is the lack of competition for full service brokers in Australia. This price gouge for data provided free by the exchange says something about their attitude to Australian customers.

 

[Trade wind]

And I'd also like to know tech/a, what planet are you on where $750 a year for a single basic data feed - far and away many times more expensive than any other exchange data - is acceptable? Haven't had time to chase this up with IB, but it looks to me like they are deliberately trying to discourage retail ASX derivatives trading.

 

[Pager]

Just got the message about the new fee for Australian futures, from zero to $65 seems pretty excessive to me, SGX charge S$1 and Eurex Stoxx futures data is 8 euro, most US markets are only US$10 bundled and free if you spend more than US$30 in commissions a month, so looks like Australian futures now have the most expensive data by some margin

Maybe only 3 ticks,but $780 a year is not to be sneezed at, and how is it justified from zero to $65, thats what i think they should at least state, is it IB or the exchange that have lifted fees so dramatically?

Not happy

 

[Pager]

Did anyone speak to IB about the new data fees being introduced today for ASX? i never did but just checked Account Mgt this morning and there is an option for “ASX 24” that’s still free and this according to the description provides data for the Spi 200!

Then another option is “ASX 24 Commodities and Futures” now that’s $65, this im thinking may be the change and it’s for the Ag and Bond market data only, maybe spi is still free? As the “ASX 24” hasn’t been removed yet as an option for data subscription.

Suppose I will find out at 9-50am this morning as im only subscribed to the free data option and message I got said I would have to add the new $65 data if I wanted it.

 

[Pager]

Did anyone speak to IB about the new data fees being introduced today for ASX? i never did but just checked Account Mgt this morning and there is an option for “ASX 24” that’s still free and this according to the description provides data for the Spi 200!

Then another option is “ASX 24 Commodities and Futures” now that’s $65, this im thinking may be the change and it’s for the Ag and Bond market data only, maybe spi is still free? As the “ASX 24” hasn’t been removed yet as an option for data subscription.

Suppose I will find out at 9-50am this morning as im only subscribed to the free data option and message I got said I would have to add the new $65 data if I wanted it.

Bollocks!

Oh well, my trading doesnt really need live data, but was nice to have it

 

[keithj]

Oh well, my trading doesnt really need live data, but was nice to have it

I made no changes to my Data Subscriptions & my realtime SPI (Jun 15) is still working fine.

This is my data setup..

 

[Pager]

Not sure what’s going on, will ring them later today to clarify as on my desktop I cannot get Spi data, however im just off out so have switched to mobile trader and its still available and working?

 

[edboc]

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.

So it's possible to have a margin account with IB being an Australian citizen? I'm in the States now, and thinking of moving to Australia, and IB told me I couldn't keep my margin account with them if I moved to Australia.

 

[freebird54]

Any BBY clients have a problem with IB platform they were using? - you can access it but accounts frozen even when it has a substantial credit.

 

[sails]

Not sure what’s going on, will ring them later today to clarify as on my desktop I cannot get Spi data, however im just off out so have switched to mobile trader and its still available and working?

I lost SPI data this morning, so clicked on the subscriptions link (provided on the line where SPI data is normally shown on the platform) and found I was able to choose the free SYCOM data - so it's all back to normal now.

Any BBY clients have a problem with IB platform they were using? - you can access it but accounts frozen even when it has a substantial credit.

Is this resolving for you yet?

 

[blue0810]

I lost SPI data this morning, so clicked on the subscriptions link (provided on the line where SPI data is normally shown on the platform) and found I was able to choose the free SYCOM data - so it's all back to normal now.

IB said that it is not free any more. Now they update their website
with new prices.

 

[RazzaDazzla]

$65/month for SFE SPI200 data! You've got to be kidding me?! How does it go from free to $65?

Is this SFE pushing up the price, or IB gouging?

 

[sails]

IB said that it is not free any more. Now they update their website
with new prices.

I found an email this morning stating that the "free" option for SPI data was ambiguously described and that I had until today to register with the $65 per month or would lose that data. I am going to let it go as my interest is in XJO options and not completely necessary.

Investing.com has SPI data but it's not as good as I could get through IB. It's a shame but things change so have to adapt.

 

[CanOz]

I have no data from these knuckleheads this morning, can anyone from Australia receive any data?

 

[captain black]

I have no data from these knuckleheads this morning, can anyone from Australia receive any data?

G'day CanOz,

Receiving SPI and Kospi data ok here.

 

[CanOz]

G'day CanOz,

Receiving SPI and Kospi data ok here.

Thanks, my eSignal data is fine, just IB thats a problem...