Interactive Brokers

[minwa]

The concern from Eureka's point of view is that other brokers do not pay Eureka report for recommending them in their report.

 

[freebird54]

And for those of us that are not subscribers to the Eureka report...what concerns would they be?

Copyright problem quoting on this site but generally concerns using s non aust broker as to who owns the stock

 

[willy1111]

Copyright problem quoting on this site but generally concerns using s non aust broker as to who owns the stock

Its definitely something to be aware of, especially what would happen in the event of failure of IB.

Its my understanding that as IB are a member of SIPC, in the event of failure of IB the client is insured for a portfolio of stocks upto $500k and cash up to $100k. Just be sure to print or save regular reports to evidence holdings and cash balances in the event they shut down login access.

Portfolio's above this amount could be wise to go with CHESS broker.

 

[freebird54]

Its definitely something to be aware of, especially what would happen in the event of failure of IB.

Its my understanding that as IB are a member of SIPC, in the event of failure of IB the client is insured for a portfolio of stocks upto $500k and cash up to $100k. Just be sure to print or save regular reports to evidence holdings and cash balances in the event they shut down login access.

Portfolio's above this amount could be wise to go with CHESS broker.

Thanks willy - anyone like to confirm the above - a load off my mind if so

 

[willy1111]

Thanks willy - anyone like to confirm the above - a load off my mind if so

More info....

www.interactivebrokers.com.au/en/index.php?f=ibgStrength&p=acc

 

[freebird54]

Thanks willy - anyone like to confirm the above - a load off my mind if so

a great result with MF Global http://www.sipc.org/

 

[RogueTrader273]

Could anyone offer an alternative to IB which doesn't have a T + 3 rule, whereby
I have to wait three days after closing a position to use that cash to buy something
else?

 

[freebird54]

I could not find any when I looked a while ago - I have a company so use the margin - good rates

Some borrow on at c. 2% and invest in say mortgages at c. 10% - works well but I would hedge currency risk but it is stable at the moment

 

[Rc366]

Can anyone say how IB's forex spreads and fees compare with online exchange brokers?
Brokers rates here https://www.monito.com/send-money/united-states/thailand/usd/thb/10000
IB rates here I think https://www.interactivebrokers.com.au/en/index.php?f=commission&p=fx

Seems like online brokers can get the spread+commission down to 0.40% for most trades in the 3-10k range.
Whereas IB is sitting at a flat 20 basis points = 0.20%

Do I have this about right? Does IB get a better interbank rate due to volumes, I'm probably missing something..

I'll be exchanging USD, EUR, CAD, AUD, SGD, GBP into PHP, THB in the 3-10k range, 8-12x per year attempting to live off international dividends

 

[Rc366]

What service are you guys using to deposit into IB ?
NAB charge $22 for international transfer payment fee. Anyone know how to avoid this?

 

[Wysiwyg]

What service are you guys using to deposit into IB ?
NAB charge $22 for international transfer payment fee. Anyone know how to avoid this?

I am not in IB but apart from making up 10 x $22 in a trade, you can write off the cost as a trading expense at tax time. Keep the receipts. I assume you are recognised by ATO as carrying on a business.

 

[Trembling Hand]

Isn't IB now accepting Bpay transfers?

 

[skyQuake]

Bpay limits $100k/day
CBA wire costs $30

 

[Rc366]

Isn't IB now accepting Bpay transfers?

My apologies, the $22 fee is for international transfer, I have just transferred into IB Sydney branch in base AUD currency so just a domestic EFT will have no charge.

 

[notting]

I hate this company.
They took away the ability to short, leverage, to trade FX meaningfully and charge you sick fees on your cash holdings. They try to charge for real time data and charts. Why use them when you can do all this effectively for nothing elsewhere?

 

[AndyShax]

Hi Guys,

for those who still use IB after their clash with ASIC, how do you deal with the restriction to trade forex? I dont trade forex, but to purchase US securities you need US dollars and I understand IB currently bars aussie accounts from buying USD with AUD?

 

[Trembling Hand]

I hate this company.
They took away the ability to short, leverage, to trade FX meaningfully and charge you sick fees on your cash holdings. They try to charge for real time data and charts. Why use them when you can do all this effectively for nothing elsewhere?

You cannot do anywhere near what IB offer with Oz based brokers. If you just trade a few ASX shares then fine but IB offers 1000000 times more than whats on offer here. I trade through a company so all the margin cr@p is of no concern to me.

 

[Indoril]

Why use them when you can do all this effectively for nothing elsewhere?

Like where?

 

[kefa]

Hi,
Does anyone use IB as a broker in a family trust? I have only used IB for short term trading and not long term investments. But when I look at the margin rates on offer they seem incredible to anything else being offered by Aussie brokers. Using their calculator if I borrow $200,000 on margin I would currently pay only 2.85%. There are plenty of stocks/ETFs that could well fund this just on dividends. Just checking I'm not missing something because it almost seems to good to be true.

 

[Sir Burr]

I could not find any when I looked a while ago - I have a company so use the margin - good rates

Some borrow on at c. 2% and invest in say mortgages at c. 10% - works well but I would hedge currency risk but it is stable at the moment

How are you getting 10%, what product is this? I'm running a short term system but interested in using that cheap margin more

Thanks.