Australian (ASX) Stock Market Forum

Experience with Aussie brokerage, Capital 19?

Joined
Jul 11, 2013
Posts
12
Reactions
0
Not sure if this is in the right forum. Just wondering if anyone has any kind of experience or a trading account with the Sydney based brokerage firm, Capital 19. I sent them an email once with some queries but never heard back. They have pretty good commission fees compared to other Aussie-based brokerages, eg US options $2 per contract with $15 minimum, and stocks 2 cents per share with $15 minimum. Aussie options $2 per contract with $30 minimum, and stocks 0.15% trade value with $15 minimum. You can also trade on a stack of other international exchanges and the fees for those appear to be pretty good too.
 

So_Cynical

The Contrarian Averager
Joined
Aug 31, 2007
Posts
7,064
Reactions
714
I have no experience with them, just wondering with the services they offer if they are simply reselling IB?
 

skc

Goldmember
Joined
Aug 12, 2008
Posts
8,277
Reactions
304
It looks like they are just white-label the Interactive Broker (IB) TWS platform. If that's what you want to use then just go join IB directly. It's cheaper with 8bps or $6 minimum trade for Aussie stocks.

There are a few threads on IB here so make sure you read up and are comfortable with your stocks being held in "street name" rather than CHESS.
 
Joined
Jul 11, 2013
Posts
12
Reactions
0
Thanks, guys. I did wonder what the give was about TWS, as there seem to be a large number of brokerages that offer that platform. I've heard too many scary stories about IB to consider an account with them. Shame, as they seem to be the only cheap brokerage for trading the ASX and have so many perks, whether you want to trade international exchanges, or options, or need all the right routes for penny stocks, etc. They almost seem to have a monopoly. I wonder if Capital 19 would just refer all support queries to IB.

Why is it that Aussie brokerages are so expensive? It's not like ComSec, Westpac, and Etrade can't afford to be cheaper. Is it some kind of ACCC non-competition thing to benefit the smaller brokerages?
 
Joined
May 1, 2007
Posts
2,904
Reactions
45
Thanks, guys. I did wonder what the give was about TWS, as there seem to be a large number of brokerages that offer that platform. I've heard too many scary stories about IB to consider an account with them. Shame, as they seem to be the only cheap brokerage for trading the ASX and have so many perks, whether you want to trade international exchanges, or options, or need all the right routes for penny stocks, etc. They almost seem to have a monopoly. I wonder if Capital 19 would just refer all support queries to IB.

Why is it that Aussie brokerages are so expensive? It's not like ComSec, Westpac, and Etrade can't afford to be cheaper. Is it some kind of ACCC non-competition thing to benefit the smaller brokerages?
What scary stories? Only ones I've heard is the difficult set up process.

-----------------

What a clever business model white-labelling TWS! They make a lot of free $ and doesn't seem to be much outlay at all!
 
Joined
Jul 11, 2013
Posts
12
Reactions
0
What scary stories? Only ones I've heard is the difficult set up process.

-----------------

What a clever business model white-labelling TWS! They make a lot of free $ and doesn't seem to be much outlay at all!
White labelling is how it rolls these days. Binary option platforms are a good example too.

I couldn't recount all the scary stories about IB, as I've seen quite a few on different sites including this one, and they have just been adding up over time to leave quite a strong impression. I do have a link to a page on Timothy Sykes site http://www.timothysykes.com/2012/12/the-best-penny-stock-brokers-for-2013/#. which pretty much sums it up:

"2. Interactive Brokers has the single worst customer service of any company, financial or otherwise, that I have ever dealt with and if you have any issues with trades, executions or software glitches, expect them to screw you…because they only care about their bigtime hedge fund clients, not about anyone with less than $1 million and certainly not anyone with less than $100,000."

I'm sure there are plenty of clients who have a good experience, but the probabilities are not good. :p
 
Top