Interactive brokers

This is a discussion on Interactive brokers within the Brokerages forums, part of the Commercial category; What is your take on interactive brokers. What is the margin and leverage potential possible with this broker....

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Old Feb 27, 2005, 2:06pm   #1
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Interactive brokers

What is your take on interactive brokers. What is the margin and leverage potential possible with this broker.
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Old Feb 27, 2005, 2:14pm   #2
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Excellent. Can't fault them.

Your other questions are best answered by using the facilities on the IB website.

www.interactivebrokers.co.uk
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Old Feb 27, 2005, 2:28pm   #3
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Quote:
Originally Posted by rossored
Excellent. Can't fault them.

Your other questions are best answered by using the facilities on the IB website.

www.interactivebrokers.co.uk
Hi what is the margin potential and leverage possible. For eg can I get £10,000 margin with a £2,000 account
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Old Feb 27, 2005, 2:56pm   #4
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It depends on what you wish to trade, as Rossored has said all the answers you require are found by clicking on the link he provided.


Paul
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Old Feb 28, 2005, 12:51am   #5
 
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Quote:
Originally Posted by cj12
I used to have an account with IB.but not anymore I moved it to www.Twowayfutures.com
These guys will answer the phone not like IB.

Also twowayfutures use the same platform as IB.

CJ
Seems like twowayfutures.com sit between you and IB and charge a premium on each
trade.

What value do they add to justify this premium?
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Old Mar 20, 2005, 8:56am   #6
 
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I was also thinking of opening an account with IB in UK. I traded futures with First American for several years before they were bought by Man Financial and I do not get the same service any longer I used to get being with a smaller firm.

Does anyone have any experience with the Forex side of IB and the the spreads? I heard tthe spreads were very wide.

Alexander
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Old Mar 20, 2005, 12:18pm   #7
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Alexander

IB's forex spread on the ones that I look at are just 1-2 pip e.g. EUR/USD and GBP/USD.
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Old Mar 20, 2005, 1:01pm   #8
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Quote:
Originally Posted by donaldduke
Seems like twowayfutures.com sit between you and IB and charge a premium on each
trade.

What value do they add to justify this premium?
they are known as introducing brokers. they typically charge a premium on r/t costs as they provide 'value added service' (over that which the clearer will provide) for the extra costs. in this case answering the phone is their v-a-s!

this imo may be an idea if trading pit contracts, where human error can represent an element of extra risk, but with e-contracts, the extra value they can add erodes.
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Old Mar 20, 2005, 1:53pm   #9
 
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Quote:
Originally Posted by juanbyte
Alexander

IB's forex spread on the ones that I look at are just 1-2 pip e.g. EUR/USD and GBP/USD.
Thanks, I will check that out.

Alexander
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Old Jan 12, 2006, 1:35pm   #10
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Interactive brokers CME-CBOT futures commissions v's the competition

Hi

IB offer the cheapest commissions within CME-CBOT futures trading that I am aware of. However, the only other brokerage service that I know much about is Tradestation .

Is anyone aware of any direct access futures brokers covering the US based futures markets that offer cheaper commissions than IB? If so, their names please .

Many thanks

jtrader.
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Old Jan 12, 2006, 1:54pm   #11
 
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IB are hard to beat if you trade low volumes, e.g 1-10 lots a day, but once you reach 15-20 it's possibly worth looking elsewhere.

Have a look at www.transactfutures.com and www.velocityfutures.com. There's lots more here too. >>
http://www.elitetrader.com/br/

If I remember rightly Bill at Transact quoted me $2.94 per r/t on 364+ rts a month (18 a day) for the YM.

If you want it even cheaper you can lease/buy a seat from the CBOT or CME.

http://www.cme.com/trading/mem/leaseprices.html (IOM for index futures)
http://www.cbot.com/cbot/pub/page/0,3181,936,00.html (IDEM for Dow futures)

Last edited by frugi; Jan 12, 2006 at 2:33pm. Reason: additional info
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Old Jan 12, 2006, 2:20pm   #12
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Thanks frugi

I notice that quite a few of these direct access futures brokers do not display their commissions, but will make you an offer upon application.
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Old Jan 26, 2006, 10:49pm   #13
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Re: IB margin

Quote:
Originally Posted by ken otalor
What is your take on interactive brokers. What is the margin and leverage potential possible with this broker.
Although IB's commissions are hard to beat . You should understand a little discussed aspect of IB's trading cost when you're comparing brokers. Interactive Broker's will not pay credit interest on the first $10,000 of your account's cash balance. So i.e., at 4% interest that's about $400/yr or $33/month that you lose compared to brokers that give full cash balance interest.

The other aspect to remember is when you short a stock; IB's will not pay interest for the cash your account receives from the short sale on the balance below $100,000. This becomes a significant amount of money when compared to brokers that pay full account balance credit interest on shorted proceeds.

see the examples at their website.

http://www.interactivebrokers.com/en...estMethods.php

hope this helps you,

urep
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Old Jan 27, 2006, 3:31pm   #14
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Which broker gives you 4% for the whole balance of $10,000 and do not charge a software fee? It is true that account of this size or close is relatively expensive on IB. It does not cancel the fact that IB provides excellent interest rates if you compare to others. Also, which broker pays you good interest on money received from short sales and not charges you for these sales? If you want to compare, let's compare with concrete numbers from the other side. IB is a business but not charity.

Last edited by idetkov; Jan 27, 2006 at 3:41pm.
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Old Jan 27, 2006, 4:21pm   #15
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To avoid confusion/conflicts between this IB thread and the other one, I have closed this one.

Any further questions regarding IB can be answered on their new thread, here:

http://www.trade2win.com/boards/brokerages/18316-interactive-brokers.html
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