Trading forex without using CFDs?

[Seneca60BC]

Hi All

Can someone tell me where I can open an account and trade FOREX without the use of CFD. Yes I will have to use leverage but I do not want to use CFDs. If this is not possible, how do they do it in the USA where CFDs are illegal ?

thanks again.

 

[CanOz]

Hi All

Can someone tell me where I can open an account and trade FOREX without the use of CFD. Yes I will have to use leverage but I do not want to use CFDs. If this is not possible, how do they do it in the USA where CFDs are illegal ?

thanks again.

You can trade minimum 30,000 lots on Interactive Brokers.

Cheers,

CanOz

 

[Seneca60BC]

Hi CanOz

Can you explain to me what they mean when they say Interest Charged:

http://individuals.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc

Do they mean they will deduct from my account the given interest rate stated on that link?

Dont quite understand this part.

Thanks

 

[tayser]

If you're new to FX Trading, buy this book and read it:

http://www.moneybags.com.au/default.asp?d=0&t=1&id=5016&c=0&a=74

 

[CanOz]

Hi CanOz

Can you explain to me what they mean when they say Interest Charged:

http://individuals.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc

Do they mean they will deduct from my account the given interest rate stated on that link?

Dont quite understand this part.

Thanks

Yes, as you may use some margin to trade with, so the interest is charged on that plus there is interest charged or paid on overnight positions on FX. If you go long on the GBP against the USD and the interest rates in the UK are higher than the US you have a positive carry into the next day and will get paid the benchmark rate -+ a % on top usually, refer to the table in your link.

Unless you are holding large positions overnight this should not be a huge concern and is either income or an expense.

Cheers,


CanOz

 

[Big_Daz]

guys...would trading ishares be an option as well?

Has anyone had any experience with ishares?

 

[Seneca60BC]

Yes you can also trade shares - which brings me to my next question for CanOz.

How much does it cost to short aussie shares using Interactive Broker ?

I cannot readily see the costs for this.

Thanks for the earlier explanation CanOz

 

[CanOz]

guys...would trading ishares be an option as well?

Has anyone had any experience with ishares?

ishares are EFTs, i have traded the SPY, and currently have XLU as a short....maybe for a 'short' period of time

But there are some currency ETFs, the FXE (Euro), UUP, the dollar bullish fund to name a couple.

Cheers,

CanOz

 

[CanOz]

How much does it cost to short aussie shares using Interactive Broker ?

Well you have a small brokerage cost, like $3.00 or something...and then you have interest on the margin loan, minimal, and then you'll get stung for dividends if they are due...yes you have to pay the dividends (to the guy you borrowed the stocks to short from).

Have i missed anything?

Honestly its not much but i haven't shorted any ASX stocks lately...i can go through my account summaries if you like for an example.


Cheers,


CanOz

 

[Seneca60BC]

Hi CanOZ,

No thats fine - i found out the brokerage rates - but one question i have is to do with subscribing to "data lines".

Now, just say I want to trade aussie shares - do I have to subscribe to the ASX data line and cop a $30+ fee every month?

Can i trade without subscribing to this data line?

Thanks again.

 

[CanOz]

Hi CanOZ,

No thats fine - i found out the brokerage rates - but one question i have is to do with subscribing to "data lines".

Now, just say I want to trade aussie shares - do I have to subscribe to the ASX data line and cop a $30+ fee every month?

Can i trade without subscribing to this data line?

Thanks again.

You still need the data in order to trade yes, otherwise there will be no data in the order screen...can't imagine that. I think there is a minimum transaction quantity and if yu are over then its cheaper or nearly free but i cannot recall. The way i'm trading this month i might get stung with the charge!

Cheer,


CanOz

 

[Seneca60BC]

Hi CanOz

I dont quite understand what they are saying then:

There is no requirement to subscribe to market data in order to trade and customers are free to receive market data from another IB account or data vendor.



So not sure what to make of it?

 

[jersey10]

Hi CanOz

I dont quite understand what they are saying then:

There is no requirement to subscribe to market data in order to trade and customers are free to receive market data from another IB account or data vendor.



So not sure what to make of it?

I think it means you can still trade with IB without subscribing to their data.

 

[Seneca60BC]

ok so the end of the day is i need to subscibe to some other provider to get ASX data so that I can trade Aussie shares if i wish ?

thanks

 

[CFD]

If you are going to start trading FX, what's wrong with using CFDs?

Seems to me to be a good way to learn the FX market without being involve in all of the currency dealing complexities.

 

[Seneca60BC]

Well thats a very good point. I am simply scared of CFDs because of the unlimitted loss concept and I think CFDs get a bad name here on this forum from what I can gauge.

How do you trade FX with CFDs?

Cheers

 

[tayser]

You don't.

As I said, if you're new to trading FX, read the book I linked to above - it explains the market mechanics exceptionally well.

 

[BentRod]

Also check out http://www.babypips.com/school/