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Interactive Brokers

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

  1. DocK

    DocK

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    My understanding is that IB did not obtain the necessary licenses in Australia to satisfy ASIC requirements for providing margin lending to Australian clients. As they are not based in Australia I understand we were able to obtain the same margin available to their global clients, but ASIC consider they should have treated their Aussie clients differently, based on our domestic regulations etc. I wonder whether the expense and hassle of satisfying ASIC will be worth the bother for IB for the number of Australian clients they have? It was originally going to be all fixed up within 6 months - and that was about a couple of years ago now wasn't it?

    Still, a nice surprise to wake up to, as you say.
     
  2. tech/a

    tech/a No Ordinary Duck

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    I used it for 7 yrs.
    Never had a problem.
    Was great.

    Wish it was still available.
    Seems we are small fish!
     
  3. McLovin

    McLovin

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    If you're a company you can still use their margin lending, as I understand.
     
  4. pavilion103

    pavilion103

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    I wonder if it's worth setting up and account as a company if it doubles exposure.

    I guess there are a number of other considerations too.

    I would love some thoughts on this. Is there a specific thread for it?
     
  5. McLovin

    McLovin

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    If you're planning on making $50k/year (which is what I think you said in another thread) a company is not a great structure because you'll be taxed a flat 30%. I'd do a trust with corporate trustee which looks like it's OK. You'll need to work out whether the structure is worth the $$$ to maintain.

    https://ibkb.interactivebrokers.com/article/2101

    NB: I've never used IB so I have no idea how up to date that information is. Definately ring them before you go and start setting up things.
     
  6. pavilion103

    pavilion103

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    Thanks mate.
    If I was hypothetically working too it would then be worth it?

    Say 70K in my job + 50k as a company in trading?

    But if I left work and only made 50K then not worth it?
     
  7. tech/a

    tech/a No Ordinary Duck

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    Youll get bored PAV

    Your only trading a few hrs a night
    wont upset a job.

    Chat to an accountant re structure.
    I've not used a company--and it has been expensive.
    Complacently slack!
    Got devoured when I closed out the system before 2008.
    Even though some were over 12 mths held.
     
  8. McLovin

    McLovin

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    It works like this...

    Once you're income is above $37k you're paying a marginal rate that is higher than the corporate tax rate, however you're effective tax rate is much lower. An effective tax rate of 30% kicks in at about ~$180k.

    So when you're working for someone else it will make sense to be trading through a company, once you stop working for someone else it will be better to trade through yourself/trust until you reach $180k in income/year.

    A trust with a corporate bene might be an option but you really need to speak to an accountant, which I am not! When you do these things you need to make sure you hit the sweet spot with minimum tax but that is scaleable that if you're income does grow you're not trapped in a structure that sees you paying more tax than you need to.
     
  9. skc

    skc Goldmember

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    Going to get >$1k back... I didn't even know I used margin that much.

    With this development I can't see IB offering the margin product anytime soon.
     
  10. hawamahal

    hawamahal

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    I totally agree with this.
     
  11. rnr

    rnr

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    Here are some details to consider (the usual disclaimers apply as I am not a tax accountant).

    ASF_re_CoyTax 2015-02-11.gif
     
  12. geeroy

    geeroy

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    what is getting refunded? is it just interest charges or brokerage too ? I've since closed my account at IB and haven't heard anything
     
  13. DocK

    DocK

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    Hi Geeroy,

    I've copied and pasted the email I received from them for you, with my name & number deleted, naturally.

     
  14. geeroy

    geeroy

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    Thanks for that Dock, will try contacting them about it
     
  15. freebird54

    freebird54

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    I have been using IB for years both personal and in a company - get a good accountant, it works well
     
  16. village idiot

    village idiot

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    bit of a belated reply, but yes I have done this and had the CA amended. Took a while to get them to co operate though, they were unwilling to recognise the issue. I recommend everyone else with an IB SMSF account does the same.
     
  17. yonnie

    yonnie

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    DocK,

    I see you got a refund for the period 1/7/2010 - 10/8/2010.
    IB is refunding fees from 1/7/2010 - 19/8/2013.
    did you get any refunds for the period 11/8/2010 - 19/8/2013?
     
  18. jubuss

    jubuss

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    Hey guys, has IB reduced their brokerage for option trading?? I thought i was $3.00 per contract but the picture below clearly shows $.030 per contract (minimum of $2.00). I normally trade with only 10 to 30 contracts at a time so am i really only looking at $3.00 to enter or exit a position??

    Would love the clarification as this pricing is absolutely awesome if correct, thanks!Screen shot 2015-02-22 at 2.32.46 AM.png
     
  19. icemanmelb

    icemanmelb

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    The contract size is now 100 instead of 1000. http://www.asx.com.au/documents/professionals/asx_eto_contract_size_reduction.pdf

    Ice
     
  20. jubuss

    jubuss

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