Australian broker for international options trading?
- Thread starter newdog
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Re: Australian broker for International option trading?
Does it have to be an aussie broker ? AFAIK none of the aussie brokers offer access to international options.
Does it have to be an aussie broker ? AFAIK none of the aussie brokers offer access to international options.
Re: Australian broker for International option trading?
I would prefer it, Although i have heard of a few us brokers like IG or thinkorswim.
IICR ig needs min 10k which i don;t want to put forward that much at the moment.
I would prefer it, Although i have heard of a few us brokers like IG or thinkorswim.
IICR ig needs min 10k which i don;t want to put forward that much at the moment.
Re: Australian broker for International option trading?
Also found on this forum that Thinkorswim closed australian accounts. So is that out of the question now?
Also found on this forum that Thinkorswim closed australian accounts. So is that out of the question now?
Re: Australian broker for International option trading?
Thinkorswim & IG is not an Australian broker anyway, they only had branches servicing Australia. Like many other US/UK-based brokers, OX/IB etc.
If you happen to find a fully Australian broker offering international options, you will be ripped off through the teeth anyway.
And just some well-meaning advice take it however you want: you really have no business looking to trade options with less than $10k.
Thinkorswim & IG is not an Australian broker anyway, they only had branches servicing Australia. Like many other US/UK-based brokers, OX/IB etc.
If you happen to find a fully Australian broker offering international options, you will be ripped off through the teeth anyway.
And just some well-meaning advice take it however you want: you really have no business looking to trade options with less than $10k.
Re: Australian broker for International option trading?
I completely disagree.
If you only have $10,000 to trade, I would trade Options rather than shares.
I used to play the share market - with a lot of money. Using Buy Low and Sell High strategy- my portfolio would fluctuate by VERY LARGE AMOUNTS during the course of a year. Just look at the All Ordinaries over the past 10 years and you will see how much your portfolio can fluctuate by buying and holding. It's obviously very risky and volatile.
Now I buy very few shares and only play Options strategies. My portfolio value is much more stable.
Go ahead and play Options - but do your research and know the theory before you start. Some basic rules for you are this.
1. Try and make money SELLING options (Puts and Calls). Don't buy Options, hoping to make a profit.
2. Start with basic strategies. Like selling Out of the money puts on an index (like the S&P). This is a strategy used by Investors like Warren Buffet that makes consistent income.
The best strategy for a beginner is to sell Covered Calls on shares you own - you will find your portfolio value is much more stable over time and makes more money over a long period than simple buy and hold of shares. MANY studies have proven this. You can find good information on Covered Calls by youtubing a man called Alan Ellman. And if you don't have much money, you can start by doing what is called a "poor-man's covered call" - but don't start with big amounts of money, since this is a very leveraged strategy. Perhaps start by using 20% of your portfolio and put the other 80% in the bank until you have some experience trading diagonal spreads successfully.
3. Start Small. Get a basic technique working and once you are confident and have used it many times, you can increase the size of your trades. Perhaps start with Limited Loss strategies (like trading a spread) and once you have amassed enough money and experience, you can go up towards trading naked strategies (with stop losses).
4. Know your maximum stop loss/take profit in advance with each trade. Look at the Greeks of each trade and KNOW your chance of winning in advance. Remember, Options strategies are based upon mechanical trading of the same strategy, and winning is not always dependent upon you guessing correctly the direction of the stock or the market. You are making money mainly by selling volatility, not by being a psychic who can predict the direction of the market from day to day.
5. You can get very good advice from www.tastytrade.com Watch the videos. The strategies are statistically proven to make you money over time. But you have to be patient and really learn the theory carefully.
6. If you want someone to hold your hand and walk you through trading any Options strategy, use my broker in Sydney. They are Capital 19 and they will create for you a Reg T account which will allow you to sell and buy Options freely on margin on the US and Australian markets. Tell them Tony from the forums referred you.
This post is not an advertisement for my broker.
You asked what broker allows you to trade US Options and I am just answering your question to the best of my knowledge. There are other brokers who trade US options. Interactive Brokers for example, but if you are an Australian, they will not open a Margin account for you. Only a cash account - which will severely limit the trading strategies you can use.
I completely disagree.
If you only have $10,000 to trade, I would trade Options rather than shares.
I used to play the share market - with a lot of money. Using Buy Low and Sell High strategy- my portfolio would fluctuate by VERY LARGE AMOUNTS during the course of a year. Just look at the All Ordinaries over the past 10 years and you will see how much your portfolio can fluctuate by buying and holding. It's obviously very risky and volatile.
Now I buy very few shares and only play Options strategies. My portfolio value is much more stable.
Go ahead and play Options - but do your research and know the theory before you start. Some basic rules for you are this.
1. Try and make money SELLING options (Puts and Calls). Don't buy Options, hoping to make a profit.
2. Start with basic strategies. Like selling Out of the money puts on an index (like the S&P). This is a strategy used by Investors like Warren Buffet that makes consistent income.
The best strategy for a beginner is to sell Covered Calls on shares you own - you will find your portfolio value is much more stable over time and makes more money over a long period than simple buy and hold of shares. MANY studies have proven this. You can find good information on Covered Calls by youtubing a man called Alan Ellman. And if you don't have much money, you can start by doing what is called a "poor-man's covered call" - but don't start with big amounts of money, since this is a very leveraged strategy. Perhaps start by using 20% of your portfolio and put the other 80% in the bank until you have some experience trading diagonal spreads successfully.
3. Start Small. Get a basic technique working and once you are confident and have used it many times, you can increase the size of your trades. Perhaps start with Limited Loss strategies (like trading a spread) and once you have amassed enough money and experience, you can go up towards trading naked strategies (with stop losses).
4. Know your maximum stop loss/take profit in advance with each trade. Look at the Greeks of each trade and KNOW your chance of winning in advance. Remember, Options strategies are based upon mechanical trading of the same strategy, and winning is not always dependent upon you guessing correctly the direction of the stock or the market. You are making money mainly by selling volatility, not by being a psychic who can predict the direction of the market from day to day.
5. You can get very good advice from www.tastytrade.com Watch the videos. The strategies are statistically proven to make you money over time. But you have to be patient and really learn the theory carefully.
6. If you want someone to hold your hand and walk you through trading any Options strategy, use my broker in Sydney. They are Capital 19 and they will create for you a Reg T account which will allow you to sell and buy Options freely on margin on the US and Australian markets. Tell them Tony from the forums referred you.
This post is not an advertisement for my broker.
You asked what broker allows you to trade US Options and I am just answering your question to the best of my knowledge. There are other brokers who trade US options. Interactive Brokers for example, but if you are an Australian, they will not open a Margin account for you. Only a cash account - which will severely limit the trading strategies you can use.
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Re: Australian broker for International option trading?
This is surprising. Capital 19 is just whitelabel IB. Yet they are still able to offer margin etc? How sustainable is that practise
This is surprising. Capital 19 is just whitelabel IB. Yet they are still able to offer margin etc? How sustainable is that practise
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Thanks for a great post and the info supplied.
