Trembling Hand
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What do you need?
Interactive Brokers
- Thread starter MrMarcus
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- interactive brokers
What do you need?
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-Some leverage preferably, though not absolutely essential.
-ASX stocks +/- US stocks
-Contingent orders which will trigger at any/all of bid/ask/midpoint
-Safety of client funds
- $10 or less one way
IG - no
CMC - no
IB - no
Morrisons - no
FP - no
Amscott - no
Closest is CBA cfds but they are OTC which I don't like.
CMC stockbroking also reasonably close.
tech/a
No Ordinary Duck
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I missed that sorry.
I don't want to reduce position size too much, particularly if I can't get IB's brokerage. But yeh it means having much more cash than is truly necessary, earning no interest, sitting in IB's coffers. The amount I really need to cover the preferred positon size is more than I have anyway.
What is the problem with FP Markets?
CanOz
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GB, can you program your own orders into an API?
Trembling Hand
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After the first 10g you get LIBOR
That then means you're not server side. Asking for trouble i reckon.
CanOz
Home runs feel good, but base hits pay bills!
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Yeah true, might be ok if you're there to monitor it, yeah?
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"Funds that are deposited with FPM are held in a trust account at National Australia Bank (NAB). Your CFD funds on deposit with FPM are held in a trust account established, maintained and operated in accordance with the Australian Client Money Rules".
The first sentence is ok. The second I'm not sure about in case FP happened to collapse like MF Global did. Do you know what would happen?
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I could probably learn. You mean to bypass the contingent order requirement?
I think it would be a bit messy (as mentioned, server side) and also it requires the PC to be switched on and the connection active at all times, which is a pain.
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Maybe I've found a way to do this.
With T+3, if I buy today 6th Oct, and sell before or at the close of 9th Oct, is it correct that the cash proceeds will appear immediately in my account? [I'm not used to T+3 since none of my other brokers have ever enforced it].
Does the 3 day rule only refer to 3 trading days, or are holidays/weekends included in the calculation?
With T+3, if I buy today 6th Oct, and sell before or at the close of 9th Oct, is it correct that the cash proceeds will appear immediately in my account? [I'm not used to T+3 since none of my other brokers have ever enforced it].
Does the 3 day rule only refer to 3 trading days, or are holidays/weekends included in the calculation?
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ok. I'm still trying to work out how safe they are as a company. We don't know how many clients they have or what their financials look like, do we? If they did an MF Global, what happens to client funds?
That question is answered under the heading "Hedging" - when monies are used for to pay FPM to cover the hedging of a position they are then treated as an unsecured creditor.
Why not just set up a company and use that to trade thru IB and these issues will no longer be relevant?
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Unsecured, ok.
If I trade as a 'corporation' through IB, the T+3 rule no longer applies? Yesterday I asked IB support if there was any possible way for an Aus client to bypass T+3 and he said no...?
Would that mean I have to open a professional account and pay professional fees (which are generally quite a bit higher)?
Required legal vehicles - LLC, CA, UK
From what I have read on the forum companies are able to access a margin account which also gets around the T+3 issue.
I doubt that having a company makes you a professional trader in the eyes of IB.
Hello
I am a noob but went through this with IB so can contribute.
The T+3 rule is not "removed" when you trade as a small business, T+3 is how long it takes for funds to settle when you sell - it is the same for everyone.
Its just that IB had some regulatory issues and ended up NOT being able to provide FX or Margin services to AU retail customers. OptionsXpress for example can offer margin when I asked (although they are only on the US markets).
By setting up a business, you can access the Margin facilities which allows you to trade more then you have in assets - you money still settles T+3 but you can draw on margin to trade before T+3. If you trade alot and use up all your margin you could still be stopped from trading before T+3.
US brokers are strict they have regs (google free rider provision) that explicitly restricted trading before T+3. AU Brokers also have some limits (I think I asked westpac or was it NAB ? they allowed trading in amounts before T+3 based on the value of your existing positions).
I am a noob but went through this with IB so can contribute.
The T+3 rule is not "removed" when you trade as a small business, T+3 is how long it takes for funds to settle when you sell - it is the same for everyone.
Its just that IB had some regulatory issues and ended up NOT being able to provide FX or Margin services to AU retail customers. OptionsXpress for example can offer margin when I asked (although they are only on the US markets).
By setting up a business, you can access the Margin facilities which allows you to trade more then you have in assets - you money still settles T+3 but you can draw on margin to trade before T+3. If you trade alot and use up all your margin you could still be stopped from trading before T+3.
US brokers are strict they have regs (google free rider provision) that explicitly restricted trading before T+3. AU Brokers also have some limits (I think I asked westpac or was it NAB ? they allowed trading in amounts before T+3 based on the value of your existing positions).
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Thanks very much rnr, fraa.
Would anyone know what setting up a business involves? To date I have just traded under my own name. I'm assuming this could be a lot more complex than I'm imagining. Are there different tax rules, for example?
Would anyone know what setting up a business involves? To date I have just traded under my own name. I'm assuming this could be a lot more complex than I'm imagining. Are there different tax rules, for example?
Trembling Hand
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You are using the wrong terminology. Anything can be a business - a trust, a company, a partnership or a person. What you want to ask in relation to IB restrictions is,
Would anyone know what setting up a Company involves.
Google is your friend.
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Yep, and will ask IB again also.
I'm keen to keep things as simple as possible.
