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This is a discussion on Interactive Brokers within the Brokerages forums, part of the Commercial category; Hi there, I spoke to a sales guy today and wanted to ask him some details about opening a friends ...

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Old Mar 22, 2007, 12:44am   #581
Joined Oct 2004
Hi there,
I spoke to a sales guy today and wanted to ask him some details about opening a friends and family account. I have to say I wasnt that impressed by the service. It seemed like he could nt wait to get me off the phone. I wanted to ask specific questions that I wasnt sure about from the website...

so I asked him my about my queries and rather than answer them he just said he would send me info my email. However I ve got a feeling this wont be any different from the info on the site.

There was no is there anything else I can help you with or anything. As I say just like he wanted to get me off the phone. It was about 3min phone conversation.

I gave him my email twice, but he did nt send anything...now that means another call to ask and explain...BTW his name was Perez.

Maybe I could get some info on here...from you guys who seem to be helpful and know alot.

I want to know about position sixe and contract sizes, maybe with benefit of an example.
I trade on longer time frames. Daily chart.
This means that my stop can be quite wide, meaning I need to use lower leverage so I dont compromise my total risk.

heres my situation...

risk 2-3% per trade.
Sometimes stoploss can be wide meaning can risk less per point movement.
So what I m worried about using IB is that minimum contract size might be too big for my starting capital if i olny want to risk 2% of bank.

So can anyone tell me what instruments would suit smaller leverage.

example, if I buy Footsie at 6500 and it goes to 6550 that is 50 points, what is the least value per point I can access using IB.

And a forex example would be £/$. What is the value minimum value per pip movement.
Thanks in advance.

I guess if IB isnt suitable yet then I may use GFT as I can get the lower leverage but I would really like the idea of DMA.

Thanks in advance.
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Old Mar 22, 2007, 1:19am   #582
 
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Joined Mar 2003
Briefly dragged from IB's website. I don't trade either so please do your own research.

FTSE futures per contract: £5 per tick. A tick is half a point so £10 per full point.
Commission (bundled) £3.40 per round turn (i.e open and close)

Need £2275 margin to open 1 contract and half that for intraday trades.

ISF iShares FTSE-100 1 share worth £629.75 (i.e FTSE at 6297)
Buy as few as you like. For stock you get buying power of 4 x the cash in your account, at least for US ones. I imagine this applies to UK too. Leverage on stock is far smaller than futures of course.

Commission: Up to £50,000 trade value is £6 (expensive compared to US products)
Above £50,000 trade value is £6 + 0.05% of incremental trade value>£50,000

---

Cable futures $6.25 per pip per contract
Commission $5.70 per round trip

or use IB's IDEALPRO spot forex broking

Minimum lot size is $25,000 or equivalent which I think works out at around 62.5p per pip.
Commission 0.00002 * trade value, minimum $2.50
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Old Mar 22, 2007, 1:46am   #583
Joined Oct 2004
Thanks alot for your reply. It looks like forex might the easiest way to start, as it has the lowest leverage. thanks again.
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Old Mar 25, 2007, 8:29pm   #584
 
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Joined Dec 2003
Hi,
I remember reading somewhere that IB uses a stand alone product for forex, is this still the case?
You able to trade 24hr while the FX market is open?
Kind regards
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Old Mar 27, 2007, 4:28pm   #585
Joined Jun 2004
Question Forex Trading and Currency Conversion

Hi,

I am trying out IB's demo. I can not find any of the minor or exotic pairs on their FXTrader. How can I find them please, or do they only offer majors?

Also, anyone knows when one opens an account with IB and, say, I want to transfer in GBP, and then transfer it to USD after it gets to my IB account, will they give me the prevailing spot rate? Other brokers (or sending banks) rip off by taking a couple of hundred pips which is ridiculous IMO! I hope that's not the case with IB!

I noticed that IB charges 0.0001 of the amount transfered using IDEAL but I just want to make 100% sure that the money transfered will not lose any value!
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Old Mar 29, 2007, 6:24pm   #586
Joined Apr 2004
Hi

I am wondering if it is possible to extract data from TWS feed to excel so I can do some backtesting or if IB would provide me with excel data.

I currently have an IB acc.

Stephen McCreedy
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Old Apr 4, 2007, 9:34am   #587
 
8 Posts
Joined Feb 2007
W-8BEN Internal Revenue Service Certificate of Foreign Status of Beneficial Owner

Hi,

I am looking to move from spread betting on UK / US indices to trading US equities / indices therefore to-date have had limited need to understand tax related issues stemming from any profits.

I am currently in the process of completing the IB application form for an Individual Cash account and have been stumped by the W-8BEN form "Internal Revenue Service Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding".

If anyone can provide any advice on the responses required for the following questions it would be much appreciated. My gut feel is that I would only need to select the check box for 9a. however it isn't really the kind of thing you want to second guess.

Also, will filling in the form mean that I will then be exempt from paying US tax at 30% on any interest / dividends? I am also assuming capital gains are taxed in the UK.

Best regards,
Richard

Part II Claim of Tax Treaty Benefits (if applicable)

9. I certify that (check all that apply):

a. The beneficial owner is a resident of United Kingdom within the meaning of the income tax treaty between the United States and that country.
b. If required, the U.S. taxpayer identification number is stated on line 6 (see instructions).
c. The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, if applicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).
d. The beneficial owner is not an individual, is claiming treaty benefits for dividends received from a foreign corporation or interest from a U.S. trade or business of a foreign corporation, and meets qualified resident status (see instructions).
e. The beneficial owner is related to the person obligated to pay the income within the meaning of section 267(b) or 707(b), and will file Form 8833 if the amount subject to withholding received during a calendar year exceeds, in the aggregate, $500,000.

10. Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article of the treaty identified on line 9a above to claim a % rate of withholding on (specify type of income).

Part III Notional Principal Contracts

11. I have provided or will provide a statement that identifies those notional principal contracts from which the income is not effectively connected with the conduct of a trade or business in the United States. I agree to update this statement as required.
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Old Apr 4, 2007, 10:30am   #588
Joined Apr 2006
rmwesley

I work at a US equity brokerage in London and we ask all of our clients to fill in the W8-Ben. Under "part 1" fill in name, address and tick the box which says "individual" - assuming you are the sole benficiary of the account. Under "part 2" you are correct - tick box "9a" and complete the blank with your country of residence (UK). Then sign and date at the bottom.

This will exempt you from US capital gains tax (though you are still liable to UK CGT when bringing the money back to Sterling in the UK). Dividends will be paid to you net of witholding tax at a reduced rate (from memory c10%).

Regards

Matt
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Old Apr 4, 2007, 10:33am   #589
 
8 Posts
Joined Feb 2007
Hi Matt,

Many thanks for your prompt reply. Much appreciated.

Best regards,
Richard
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Old Apr 4, 2007, 9:56pm   #590
 
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Joined Nov 2003
Quote:
Originally Posted by smccreedy
Hi

I am wondering if it is possible to extract data from TWS feed to excel so I can do some backtesting or if IB would provide me with excel data.

I currently have an IB acc.

Stephen McCreedy
Stephen

It is possible - try this link for the download and details

http://www.interactivebrokers.com/en...p?ib_entity=uk

There are also several manuals on their site covering this. Click on the "software" tab, then FIX/API and you will find the API guides there.

There is very little setup required - just a case of entering your user name and password in the appropriate place.

Charlton
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