Where do you buy your shares online?
- Thread starter Chargin8
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prawn_86
Mod: Call me Dendrobranchiata
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Part of the application should ask if you want to transfer any shares. SO essentially they would become your CHESS sponsor instead of eTrade.
IB aren't a CHESS sponsored broker. I'm pretty sure you can transfer your shares to IB but it would be easier to just leave them in the Etrade account
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Someone somewhere mentioned that it acts like a sale. We left the CS shares in CS.
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I did a few transfers from Chess Sponsored brokers (Commsec, Bell Direct) to IB, it generally takes 2-3 days to see the transfer complete
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For IB, I found it easier to just shift the money over (BPay) as I closed trades in the other ones (I don't hold stuff for long). But then I hate paperwork, even when it's online - so the mass effort you go through to start an account was plenty for me, thanks.
IB is difficult to get to grips with, but that's because it's deep as hell. A lot of very good stuff buried in there. Best thing to get started, IMO, is watch the little tute vids... (Sorry, was going to link 'em, but a quick rummage didn't turn them up. Might be linked from inside the account / TWS).
Just, honestly, if you aren't 100% sure of what you're doing, check and double check. Make sure you know your > from your <. IB won't save you from doing crazy-stupid things.
:
But seriously, if you're only trading a few times a year, or even just a few times a month, I think Bell Direct or something like that is better. One "Armed -> oops" moment in IB at the wrong time could wipe out quite a few trades of profit. Bell isn't a lot more for brokerage at small amounts ($15 minimum, compared with a $6 minimum for IB - neither charges for triggers), but it won't let you accidentally trade the wrong market on the wrong continent in the wrong direction at margin you might not have known you had, with just two bad clicks.
Not that I've done that, but I've had a few sphincter-clenching moments when I've seen the baby mashing the keyboard - ohcrapdidIcloseIBbeforeIgotupohcrapohcrap oh thank GOD.
IB is difficult to get to grips with, but that's because it's deep as hell. A lot of very good stuff buried in there. Best thing to get started, IMO, is watch the little tute vids... (Sorry, was going to link 'em, but a quick rummage didn't turn them up. Might be linked from inside the account / TWS).
Just, honestly, if you aren't 100% sure of what you're doing, check and double check. Make sure you know your > from your <. IB won't save you from doing crazy-stupid things.
:But seriously, if you're only trading a few times a year, or even just a few times a month, I think Bell Direct or something like that is better. One "Armed -> oops" moment in IB at the wrong time could wipe out quite a few trades of profit. Bell isn't a lot more for brokerage at small amounts ($15 minimum, compared with a $6 minimum for IB - neither charges for triggers), but it won't let you accidentally trade the wrong market on the wrong continent in the wrong direction at margin you might not have known you had, with just two bad clicks.
Not that I've done that, but I've had a few sphincter-clenching moments when I've seen the baby mashing the keyboard - ohcrapdidIcloseIBbeforeIgotupohcrapohcrap oh thank GOD.
Thank you for the clarification.
Today I changed from eTrade to Bell Direct and the process was very easy. Also effectively halved my buy/sell costs. Once I get a bit more experienced Ill move to IB.
WHAT?!! I better call them on Monday. I have a cash acct and an investment acct and pay $21.90/trade ($31.90 on bigger trades), I know it's cheaper then their standard rate but I would still like to save the $1.95.
I was being charged for paper contract notes. Had to change it in 'profile' to receive it via email.
I am in a similar position as the OP. I have been trading stocks (using Westpac) and CFD's (CMC) in the past. Not really traded for a long time now. I just want to make a fresh start in the new year. A lot of people here refer IB as the way to go, lower commissions is one plus point to start with and one account for all etc..
Just a quick question to people who are using IB.
1. To open an account i need to deposit 10000 USD, is this the minimum balance you have to maintain, or i can withdraw a part of it once the account is opened. Do they pay any interest on the money i keep with them.
2. Also if the money stays in AUD or they convert to USD.
3. How difficult the trading platform is say as compared to CMC.
Thanks.
Just a quick question to people who are using IB.
1. To open an account i need to deposit 10000 USD, is this the minimum balance you have to maintain, or i can withdraw a part of it once the account is opened. Do they pay any interest on the money i keep with them.
2. Also if the money stays in AUD or they convert to USD.
3. How difficult the trading platform is say as compared to CMC.
Thanks.
I've been looking at changing brokers. IB & Kinetic are two I'm looking at and have some similarity. With both it seems that any shares I buy are not actually in my name (other than with the broker) and my trading account is just an account with the broker rather than a bank account in my name. ie if the broker defaults I'd be just an unsecured creditor - no shares, no cash. I might have the wrong end of the stick here but its not that clear in the blurb available on-line. My interpretation may not be right so any advice to the contrary would help.
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I think most brokers in the world hold shares in street names like IB do, in fact I think this is big plus as it saves me lots of hassels receiving paperworks and it is a lot more environmental friendly
Apparrently your holdings under IB are insured by Llyods up to some crazy amount (USD$30 mil for shares and $1 mil for cash if I remember correctly) so in most cases you will be fine
The only drawback I have with IB is perhaps the treatment of share purchase plans (SPP) where you are likely to get an additional level of scaleback and long delays in receiving your new shares
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Hi titl4,
As far as which broker to go for that's something you can only answer yourself, are you a trader or will you just be dicking around ?
What do you trade, how frequent, do you require spreads, do you need access to overseas markets, do you require straight to the market, do you require a professional platform ??? ect.ect.
Horses for courses,
Decide what you want to do then decide on a broker.
As far as which broker to go for that's something you can only answer yourself, are you a trader or will you just be dicking around ?
What do you trade, how frequent, do you require spreads, do you need access to overseas markets, do you require straight to the market, do you require a professional platform ??? ect.ect.
Horses for courses,
Decide what you want to do then decide on a broker.
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Hi titl4,
I was just trying to work where you're at, anyhow all the info is on the website.
For clearing details look under forms and disclosures third from the bottom. For what SilverRanger was referring to, look under account protection.
Yeah, i'd probably say Commsec is your best option at this stage. Easy to use platform, and as Milo said, if you have funds in a CBA investment account (formerly known as the CDIA), the brokerage will be cheaper, about $20.00 each way.
..............
For clearing details look under forms and disclosures third from the bottom. For what SilverRanger was referring to, look under account protection.
Thanks cutz. Obviously the old problem of my not looking hard enough when its not where I first expect it. I'm not unhappy where I am but a couple of thou or more a year is not to be sneezed at if the risk is not substantially increased.
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You can withdraw - I think the minimum to maintain the account is 2k (?). They do pay interest on cash in the account, but only if your account is over 15k value total (so if you have 15k of shares, all cash is being paid interest). For AUD they pay the LIBOR -0.5%. So at the moment that's 3.375%.
PS: Ah, here we go re: minimum account size: http://ibkb.interactivebrokers.com/node/314
You choose the currency you want to work with when you open the account. So if you elect to use AUD, then your money will stay as AUD.
It's a pain to get the hang of. When I started with it I found myself going back to a Commsec window to look at data. But if you sit down and have a good muck about, it'll save the window config and settings when you log off, so you can have all the indicators you like set up and ready to go.
IB is cheap as hell and very powerful, but it is not friendly.
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Yeah no worries titl4 I know what you mean,
I actually lose quite a bit each year on excessive brokerage and small option spread slippage trading through my aussie broker, I have decided to wear it because they hold shares I don't want to move and I consider non utilized collateral to be a waste of resource.
Most of my serious option stuff is done through IB.
Something else to read from the main page is under the "About IB" menu >>Strength and Security>>Security FAQ button, (under the picture of the safe).
