Hi all! Pleased to meet you.
As a newbie with just a few Ks to trade I am looking for a broker that would allow me to trade on a relatively frequent level (a few times a month?) whilst maintaining and cutting my transaction costs. This would seem to the IB however there are a few things that really trouble me and would force me to eTrade since they have an offer with my bank (HSBC) and they are better than Commsuc.
One thing about IB is that they donít offer CHESS which not only doesnít allow me to have ownership but also to miss out on dividends. These things I suppose are minor when the real danger is a possible (extremely unlikely) collapse of IB reflective of an Opes Prime. IB seems to be going strong, 31 years blah blah but it is a US financial and in the light of the event year just look at Bear Stearns.
Another would be the $37.50 real time live data price IB charges.
What I been thinking would be to join both eTrade and IB. The logic lying in the fact that eTrade provides you with CHESS which I can use during trades with IB I think? Also that eTrade provides you with real time live data for free. Though eTrade does charge you with an account activity fee of $19.95 at the end of each quarter though that can be remedied by taking the 10K I have in IB and putting it into eTrade just before the quarter I think? If not it still seems to be the cheaper route. eTrade seems have fewer random fees and commissions but they have a really expensive broker fee.
If this falls through I was wondering if there are any fees involved in closing oneís account whether in eTrade or IB.
Since Iím 19 turning 20 I can only get the cash account as opposed to the RegT margin one at IB. This sucks since I canít trade forex or US shares and most importantly share shorting though I guess a put option would suffice to a degree?
I'm sorry about the long post its just I have a lot on my mine and need to express this flow of concept onto paper. I done a lot of research but at the same time there is whole lot more research needed I feel.
Many Thanks in advance and thanks for bearing with me. *sigh*
Oh and an Easter egg comparison of the twoís share price in the US.
IB = http://finance.google.com/finance?q=NASDAQ%3AIBKR
eTrade = http://finance.google.com/finance?q=NASDAQ:ETFC