Interactive Brokers

This is a discussion on Interactive Brokers within the Brokerages forums, part of the Commercial category; Originally Posted by Joaquimvl I Am Still Waiting For A Answer !!? @Interactive Brokers !!!!!! Hello I'm looking for a ...

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Old Mar 18, 2012, 10:32am   #1816
 
3 Posts
Joined Aug 2011
Re: Interactive Brokers

Quote:
Originally Posted by Joaquimvl View Post
I Am Still Waiting For A Answer !!?
@Interactive Brokers !!!!!!

Hello
I'm looking for a professional platform for trading stocks, forex, ... and also cheap.
I think with Interactive Brokers I found what I needed. But I have some questions.
I will start with some simple questions.

How much is the minimum start deposit in € to trade stocks (CFD's ?) ?
How much is the minimum start deposit in € to trade forex ?
Will there be problems with opening an account from Belgium, Europe (where I live)?
I don't really understand the extra costs other than the spread, please explain.

Kind regards
If I don't get answers on my questions how can i believe that I get answers on my questions when I am a client, maybe IB will think again: 'It's not important' or 'We don't care to loose a client, so we don't answer.'

@Interactive Brokers : It's your job to answer !!!!
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Old Mar 19, 2012, 5:07pm   #1817
 
Adamus's Avatar
Joined Mar 2008
Re: Interactive Brokers

Quote:
Originally Posted by val12399 View Post
Hey Guys,

Anyone seen the recent FOREX disclosure statement? They have turned into a market maker as a result of this recent move. Does anyone here trade FX through IB and if so what are you doing as a result of this news?

"RISK DISCLOSURE STATEMENT FOR FOREX TRADING
AND IB MULTI-CURRENCY ACCOUNTS
Rules of the U.S. National Futures Association ("NFA") require Interactive Brokers ("IB") to provide you with the following Risk Disclosure Statement:
RISK DISCLOSURE
OFF-EXCHANGE FOREIGN CURRENCY ("FOREX") TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED WITH A FUTURES COMMISSION MERCHANT OR A RETAIL FOREIGN EXCHANGE DEALER AS YOUR COUNTERPARTY. BECAUSE OF THE LEVERAGE AND THE OTHER RISKS DISCLOSED HERE, YOU CAN RAPIDLY LOSE ALL OF THE FUNDS YOU DEPOSIT FOR SUCH TRADING AND YOU MAY LOSE MORE THAN YOU DEPOSIT.
YOU SHOULD BE AWARE OF AND CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE DETERMINING WHETHER SUCH TRADING IS APPROPRIATE FOR YOU.
(1) TRADING IS NOT ON A REGULATED MARKET OR EXCHANGE—YOUR DEALER IS YOUR TRADING PARTNER WHICH IS A DIRECT CONFLICT OF INTEREST. BEFORE YOU ENGAGE IN ANY RETAIL FOREIGN EXCHANGE TRADING, YOU SHOULD CONFIRM THE REGISTRATION STATUS OF YOUR COUNTERPARTY.
The off-exchange foreign currency trading you are entering into is not conducted on an interbank market, nor is it conducted on a futures exchange subject to regulation as a designated contract market by the Commodity Futures Trading Commission ("CFTC"). The foreign currency trades you transact are trades with the futures commission merchant or retail foreign exchange dealer as your counterparty. WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you lose money trading, your dealer is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge.
(2) AN ELECTRONIC TRADING PLATFORM FOR RETAIL FOREIGN CURRENCY TRANSACTIONS IS NOT AN EXCHANGE. IT IS AN ELECTRONIC CONNECTION FOR ACCESSING YOUR DEALER. THE TERMS OF AVAILABILITY OF SUCH A PLATFORM ARE GOVERNED ONLY BY YOUR CONTRACT WITH YOUR DEALER.
Any trading platform that you may use to enter off-exchange foreign currency transactions is only connected to your futures commission merchant or retail foreign exchange dealer. You are accessing that trading platform only to transact with your dealer. You are not trading with any other entities or customers of the dealer by accessing such platform. The availability and operation of any such platform, including the consequences of the unavailability of the trading platform for any reason, is governed only by the terms of your account agreement with the dealer.
(3) YOUR DEPOSITS WITH THE DEALER HAVE NO REGULATORY PROTECTIONS.
All of your rights associated with your retail forex trading, including the manner and denomination of any payments made to you, are governed by the contract terms established in your account agreement with the futures commission merchant or retail foreign exchange dealer. Funds deposited by you with a futures commission merchant or retail foreign exchange dealer for trading off-exchange foreign currency transactions are not subject to the customer funds protections provided to customers trading on a contract market that is designated by the Commodity Futures Trading Commission. Your dealer may commingle your funds with its own operating funds or use them for other purposes. In the event your dealer becomes bankrupt, any funds the dealer is holding for you in addition to any amounts owed to you resulting from trading, whether or not any assets are maintained in separate deposit accounts by the dealer, may be treated as an unsecured creditor's claim.
(4) YOU ARE LIMITED TO YOUR DEALER TO OFFSET OR LIQUIDATE ANY TRADING POSITIONS SINCE THE TRANSACTIONS ARE NOT MADE ON AN EXCHANGE OR MARKET, AND YOUR DEALER MAY SET ITS OWN PRICES.
Your ability to close your transactions or offset positions is limited to what your dealer will offer to you, as there is no other market for these transactions. Your dealer may offer any prices it wishes, and it may offer prices derived from outside sources or not in its discretion. Your dealer may establish its prices by offering spreads from third party prices, but it is under no obligation to do so or to continue to do so. Your dealer may offer different prices to different customers at any point in time on its own terms. The terms of your account agreement alone govern the obligations your dealer has to you to offer prices and offer offset or
liquidating transactions in your account and make any payments to you. The prices offered by your dealer may or may not reflect prices available elsewhere at any exchange, interbank, or other market for foreign currency.
(5) PAID SOLICITORS MAY HAVE UNDISCLOSED CONFLICTS
The futures commission merchant or retail foreign exchange dealer may compensate introducing brokers for introducing your account in ways which are not disclosed to you. Such paid solicitors are not required to have, and may not have, any special expertise in trading, and may have conflicts of interest based on the method by which they are compensated. Solicitors working on behalf of futures commission merchants and retail foreign exchange dealers are required to register. You should confirm that they are, in fact registered. You should thoroughly investigate the manner in which all such solicitors are compensated and be very cautious in granting any person or entity authority to trade on your behalf. You should always consider obtaining dated written confirmation of any information you are relying on from your dealer or a solicitor in making any trading or account decisions.
FINALLY, YOU SHOULD THOROUGHLY INVESTIGATE ANY STATEMENTS BY ANY DEALERS OR SALES REPRESENTATIVES WHICH MINIMIZE THE IMPORTANCE OF, OR CONTRADICT, ANY OF THE TERMS OF THIS RISK DISCLOSURE. SUCH STATEMENTS MAY INDICATE POTENTIAL SALES FRAUD.
THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF TRADING OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS WITH A FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER.
PERFORMANCE OF INTERACTIVE BROKERS RETAIL CUSTOMER FOREX ACCOUNTS FOR PAST FOUR CALENDAR QUARTERS:
The table below sets forth the percentage of non-discretionary retail forex customer accounts maintained by Interactive Brokers LLC that were profitable and unprofitable for the past four calendar quarters. The accounts were identified and these statistics were calculated according to the definitions and interpretations set forth by the CFTC and NFA1.
TIME PERIOD NUMBER OF ACCOUNTS PERCENTAGE OF PROFITABLE ACCOUNTS PERCENTAGE OF UNPROFITABLE ACCOUNTS
Q4 2011 45053 51.0% 49.0%
Q3 2011 45058 51.2% 48.8%
Q2 2011 41651 38.8% 61.2%
Q1 2011 40370 40.4% 59.6%
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
FURTHER INFORMATION PROVIDED BY INTERACTIVE BROKERS:
A. Overview: Interactive Brokers Multi-Currency enabled accounts allow IB Customers to trade investment products denominated in different currencies using a single IB account denominated in a "base" currency of the customer's choosing. IB Customers can also use their Multi-Currency enabled accounts to conduct foreign exchange transactions in order to manage credits or debits generated by foreign securities, options or futures trading, to convert such credits or debits back into the Customer's base currency, or to hedge or speculate.
B. Nature of Your Account and Whether SIPC Covers Foreign Currency: Foreign currency trading at Interactive Brokers takes place in a securities account. Your IB securities account is governed by rules of the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. In addition, IB observes the rules of the National Futures Association in connection with foreign currency trading.
Interactive Brokers LLC is a member of the Securities Investor Protection Corporation ("SIPC"). SIPC protects cash and securities held with Interactive Brokers as specified in the Securities Investor Protection Act. SIPC protects cash, including US dollars and foreign currency, to the extent that the cash was deposited with Interactive Brokers for the purpose of purchasing securities.
Whether foreign currency in your IB account would be protected by SIPC would depend in part on whether the cash was considered to be deposited with Interactive Brokers for the purpose of purchasing securities. Interactive Brokers expects that at least one factor in deciding this would be whether and the extent to which the customer engages in securities trading in addition to or in conjunction with forex trading. For further information, you must contact your own legal counsel or SIPC.
C. General Risk: Customer understands and acknowledges that buying and selling securities, options, futures and other financial products that are denominated in foreign currencies or traded on foreign markets is inherently risky and requires substantial knowledge and expertise. Customers applying for Interactive Brokers Multi-Currency enabled accounts represent that they are aware of and understand the risks involved in trading foreign securities, options, futures and currencies and that they have sufficient financial resources to bear such risks.
D. Customer Responsibility for Investment Decisions: Customer acknowledges that IB representatives are not authorized to provide investment, trading or tax advice and therefore will not provide advice or guidance on trading or hedging strategies in the Multi-Currency enabled account. Customers must evaluate carefully whether any particular transaction is appropriate for them in light of their investment experience, financial objectives and needs, financial resources, and other relevant circumstances and whether they have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction. In making these assessments, IB strongly recommends that Customers obtain independent business, legal, and accounting advice before entering into any transactions.
E. Exchange Rate Risk: Exchange rates between foreign currencies can change rapidly due to a wide range of economic, political and other conditions, exposing the Customer to risk of exchange rate losses in addition to the inherent risk of loss from trading the underlying financial product. If a Customer deposits funds in a currency to trade products denominated in a different currency, Customer's gains or losses on the underlying investment therefore may be affected by changes in the exchange rate between the currencies. If Customer is trading on margin, the impact of currency fluctuation on Customer's gains or losses may be even greater.
F. Currency Fluctuation: When Customer uses the foreign exchange facility provided by IB to purchase or sell foreign currency, fluctuation in currency exchange rates between the foreign currency and the base currency could cause substantial losses to the Customer, including losses when the Customer converts the foreign currency back into the base currency.
G. Nature of Foreign Currency Exchange Transactions Between Customer and IB: When Customer enters into a foreign exchange transaction through IB, Customer will be entering into a privately negotiated transaction with one of IB’s affiliates or with a third party bank. In such transactions, IB’s affiliate or the third party bank ("the Forex Counterparty") is acting solely in the capacity of an arm's length contractual counterparty in connection with the transaction and not in the capacity of a financial adviser or fiduciary. Customer should be aware that the Forex Counterparty may from time to time have substantial positions in, and may make a market in or otherwise buy or sell instruments similar or economically related to, foreign currency transactions entered into with Customer. The Forex Counterparty may also undertake proprietary trading activities, including hedging transactions related to the initiation or termination of foreign exchange transactions with Customer, that may adversely affect the market price or other factors underlying the foreign currency transaction entered into with Customer and consequently, the value of such transaction.
H. Prices on the IB Forex Platforms: The prices quoted by IB to Customers for foreign exchange transactions on IB’s IdealPro platform will be determined based on Forex Counterparty quotes and are not determined by a competitive auction as on an exchange market. Prices quoted by IB for foreign currency exchange transactions therefore may not be the most competitive prices available. For purposes of maintaining adequate scale and competitive spreads, a minimum size is imposed on all IdealPro orders (USD $25,000 as of February 2012 but this is subject to change at any time). Orders below the minimum size are considered odd lots and their limit prices are not displayed through IdealPro. While odd lot marketable orders are not likely to be executed at the inter-bank spreads afforded to IdealPro orders, they will generally be executed at prices only slightly inferior (1-3 ticks). You should also understand that because of the inherent possibility of transmission delays between and among Customers, IB and Forex Counterparties, or other technical issues, execution prices may be worse than those displayed on the IB platform. IB will charge transaction fees as specified by IB for foreign currency exchange transactions. The Forex Counterparty will try to earn a spread profit on these transactions (differential between the bid and ask prices quoted for various currencies).
I. Other Risks: There are other risks that relate to trading foreign investment products and trading foreign currencies that cannot be described in detail in this document. Generally, however, foreign securities, options, futures and currency transactions involve exposure to a combination of the following risk factors: market risk, credit risk, settlement risk, liquidity risk, operational risk and legal risk. For example, there can be serious market disruptions if economic or political or other unforeseen events locally or overseas affect the market. In addition to these types of risk there may be other factors such as accounting and tax treatment issues that Customers should consider.
(1)Information regarding the performance of Interactive Brokers retail forex customers for the past 5 years is available upon request. "

Very dissapointed with this.

Would love your comments. Cheers.
Do you want to point out which section it is that alarms you? Don't want to sound lazy but the first couple of paragraphs I read before giving up were irrelevant to the point you're making.

Thanks.....
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Old Mar 19, 2012, 5:21pm   #1818
Joined Nov 2007
Re: Interactive Brokers

FX has never been exchange traded. Cept futures. Carry on.
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Old Apr 12, 2012, 4:42pm   #1819
 
9 Posts
Joined Jul 2008
Re: Interactive Brokers

OK, newbie question here...Can someone please explain why the live data for CT is offset by a factor of 100 compared to the data on theice.com? I can see on the intra day chart on theice for cotton #2 July 12 as being at 89.7 (approx.) and the quote on TWS is at 0.8980.
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Old Apr 17, 2012, 3:03pm   #1820
Joined Jan 2012
Re: Interactive Brokers

From time to time when I participate in the opening auction through Interactive Brokers before the 9:28 cut off, my order is not filled.

Does the likelihood of getting my order filled depend on how early I enter my order? (I do of course enter my order before the 9:28 cut off).

Thank you.
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Old Apr 26, 2012, 6:20am   #1821
 
1 Posts
Joined Apr 2012
Re: Interactive Brokers

Quote:
Originally Posted by val12399 View Post
Hey Guys,

Anyone seen the recent FOREX disclosure statement? They have turned into a market maker as a result of this recent move. Does anyone here trade FX through IB and if so what are you doing as a result of this news?

<snip>

Very dissapointed with this.

Would love your comments. Cheers.
I've traded Forex through IB for a number of years with no complaints (except the usual accounting/technical issues) and will continue to do so. It may sound alarming but seems to sum up Forex fairly accurately, reads like the usual legal boilerplate with a new-age regulatory overtone.

Adamus: is that you (from BMT)?
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Thanks! The following members like this post: Adamus
Old Apr 28, 2012, 8:13am   #1822
 
1 Posts
Joined Apr 2012
Re: Interactive Brokers

I have a company in Seychelles.

Can I open an account with Interactive Brokers to buy F_ES of CME?

Thanks
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Old May 15, 2012, 6:54am   #1823
Joined Apr 2005
Re: Interactive Brokers

Is it possible to open an account with the UK branch of IB and trade and chart with them using Sierra Chart?

Also, importantly, how accurate and complete is the data, particularly for volume profiles, market delta etc?

Thanks!
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Old Jun 20, 2012, 10:44am   #1824
 
4 Posts
Joined Dec 2011
Re: Interactive Brokers

Hi Donkers,

I'm having some issues with the quality of LSE data - I am not sure if the problem is IB or the exchange itself, but many trade prices are hugely out of daily range which messes with the automatic scaling found on many software packages and market profile analysis.

An example is LLOY today, which shows a low at 20p. I have attached a screenshot to demonstrate. I can see similar results when using the IB Trader Workstation on trade prices.

Again, I am not sure where the issue lies, but pulling the chart up in IG Markets does not show the same price extreme. I am trying to use Market Profile myself and the intraday spikes distort the structure.
Attached Thumbnails
multicharts2.png  
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Old Jun 25, 2012, 9:16am   #1825
Nym
Joined May 2012
Re: Interactive Brokers

Hi All,
I have a question for the more experienced of you. Do IB provide low risk assets quoted in EURO?
So far i noticed that Bonds are not available, some ETF is.

Any information will be more then welcome!
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Old Aug 14, 2012, 6:57am   #1826
 
1 Posts
Joined Aug 2012
Re: Interactive Brokers

does IB provide a tick chart functionality with corresponding volume traded below on a per second basis? similar to bloomberg GIPT function.
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Old Aug 14, 2012, 7:24am   #1827
D70
Joined Nov 2009
Re: Interactive Brokers

Quote:
Originally Posted by 2wayjo View Post
does IB provide a tick chart functionality with corresponding volume traded below on a per second basis? similar to bloomberg GIPT function.
yes
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Old Sep 3, 2012, 5:47pm   #1828
Joined Nov 2007
Re: Interactive Brokers

I am about to open a new account with Interactive Brokers. I filled the forms. I read the Customer Agreement and the margin bit. The crux was basically that Interactive Brokers can liquidate your positions at anytime without notice (fair enough). But the Agreement also stated or implied that Interactive Brokers reserves the right to change margin rules at anytime, that what is on the website is not final and that they can determine adjust and act on their new margin rules at any time without notice. So what this tells me is that margin wise, a client is at the mercy of IB and any of my positions can be liquidated at anytime based on rules I am not aware of; it also opens up room for 'shady internal operations'. I cannot do business with IB if I cannot at least get a fairly detailed picture of their margin and how the auto liquidation rule works.

Anyone know where I can get these?
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Old Sep 4, 2012, 12:35am   #1829
def
Joined Feb 2003
Re: Interactive Brokers

That is a standard clause at any brokerage. In general IB charges 50% of the CME intraday and full margin overnight. You can confirm those rates on the exchange site as well. For stocks, you typically get 4:1 intraday (assuming your account is over 25K USD) and 2:1 overnight. For low cap and volatile stocks, they sometimes do not offer margin. If you have over 100K in the account you can go for portfolio margin which can offer a greater cushion. If you live on the edge, margin will be an issue at any firm with the major difference that IB doesn't make margin calls and will liquidate a portion of your account while another firm may chase you down. The former is safer for the clientele and firm on the hole but perhaps not for someone living on the edge. One major benefit though if you do trade stocks on margin are IB's margin financing rates which are several % lower than the other major brokers.
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Old Sep 7, 2012, 4:07pm   #1830
 
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Joined Jul 2004
Re: Interactive Brokers

+1 what def said . . . . remember that it's the exchange that determine minimum margins, the broker then has to pass those onto the client.
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