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Interactive Brokers

Discussion in 'Brokers' started by MrMarcus, May 6, 2008.

  1. village idiot

    village idiot

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    thankyou elbee, that is what i wanted to hear.

    i have just fired off an email to 'superannuation warehouse' asking the same questions so will await their reponse which hopefully will confirm
     
  2. Boggo

    Boggo

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    Is your account, ie SMSF funds located in Aust and in an Aust institution or bank.

    My current auditor connects directly to my account and imports all transactions to their system.
     
  3. Boggo

    Boggo

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    I would be interested in your opinion on Superannuation Warehouse as I am currently reviewing annual costs and fees etc. There $79 p/m package would suit me and be cheaper than what I am paying now.
     
  4. village idiot

    village idiot

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    yes well that will depend a bit on how quickly they respond and how well they answer the questions , so I will let you know how that turns out....

    rest of response on the SMSF thread since this is the IB thread....
     
  5. elbee

    elbee

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    I am not sure what you mean here. My fund is a Self Managed Super Fund - I do all of the administration, including the accounting, myself.

    I can understand that not everyone has the inclination or experience to do that themselves and in that situation sub-contracting out some or all of the administration, or operating the fund under some form of institutional wrap account, may be a good approach. In that case using IB as the broker may be more difficult.
     
  6. Boggo

    Boggo

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    Understand all that, what bank or financial institution holds your SMSF funds or where can you bank your SMSF money that you access via IB ?
    Eg, my broker accesses my Bendigo Bank account.
     
  7. village idiot

    village idiot

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    Boggo, IB, like any other international brokers I have dealt with, do not operate the system where you keep cash in a separate actual bank account, which they dip into and out of. That seems to be an Australian system.

    With IB the account you set up can hold cash and shares, so you send them all the cash once, and if you then buy some shares the cash balance goes down and the stock balance goes up, all within the same account. So there is no need for the bank account you speak of that they access to pay for your purchases (or credit divs)
     
  8. Boggo

    Boggo

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    Ok, understand now, I have become familiar with and like the idea of the funds being "at arms length" from the broker.
    Glad it was when Opes Prime went ar$e up a few years ago, my broker was TraderDealer and they were owned by Opes Prime. Basically any broking transactions were halted, couldn't buy or sell but my account was seperate from the issue and not affected.

    Because of that experience, especially with my SMSF I like to keep it as a seperate entity.
     
  9. titl4

    titl4

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    I understand your point of view. The 'bad news' is that US brokers that work via an independent bank account seem to be very thin on the ground. The 'good news' is that, from my limited research, US brokers are much more tightly regulated than the Aust ones.
     
  10. cautious2

    cautious2

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    Re: Interactive Brokers & CHESS

    Normally a broker acts as CHESS sponsor for Australian shares and the investor is registered as the owner. Is this still the case with IB? Who is the registered holder, and if it is not the investor, who is the registered holder?
     
  11. freebird54

    freebird54

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    Re: Interactive Brokers & CHESS

    This has been asked by many concerned in the past but has been answered

    IB holds

    So if USA banks crash as they did in the thirties what would happen ;-)
     
  12. tech/a

    tech/a No Ordinary Duck

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  13. MichaelThomas

    MichaelThomas

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    I am looking for a cheap, reliable broker and saw the ad for interactive brokers on this site.

    The most recent pages of this thread are quite technical about smsf and the like, so i hope this basic question doesn't annoy people.

    I'm a relatively new trader, my brother-in-law got me involved after he achieved some big returns. He is investing more money than me, so he's happy paying the higher prices with Etrade.

    Question: I am only investing $10,000 on the ASX and doing around five to ten trades per month. I would like to trade for $6 per trade as advertised. Would interactive brokers be a good choice for me?
     
  14. village idiot

    village idiot

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    Michael,

    IAB are probably not as user friendly as some others. Everything is done online - the platform is not the easiest thing to learn, and if you have questions there is no one at the end of a phone to answer - you have to do an online ticket to ask every question (or ask here, sometimes better and quicker). They say it is not for beginners and that is true to some extent, although there isnt really anything there that you cant get over with a bit of nous and application.

    Also be aware that they charge for live data; i think its $37 per month for australian data. But even at 5 trades per month you would still be ahead after paying the fee, and after that you are miles ahead

    imo trading a small account is more reason to make sure you pay commissions at a level which doesnt hinder your trading.

    so IMO , yes
     
  15. tech/a

    tech/a No Ordinary Duck

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    $10k is under their minimum.
     
  16. captain black

    captain black

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  17. tech/a

    tech/a No Ordinary Duck

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    They've lightened up since I started
     
  18. captain black

    captain black

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    :)

    They were probably quoting the minimums in pounds, shillings and pence back then.... :p:
     
  19. tech/a

    tech/a No Ordinary Duck

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    Sheep pigs and goats
     
  20. captain black

    captain black

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    Lol!

    I remember back as far as shekels, but minimums in livestock is a bit before my time ;)
     
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