Best Thread Interactive Brokers

[Zeos6]

Nasdaq:
Does anyone know what causes the charts from tws to display price spikes (too many to be just line breaks), these spikes are completely absent on charts from other vendors.
Also they do not appear in the time and sales listings for the chart.?

I am not certain of what the real answer is but I have had innumerable issues with this problem with TWS - including trades that turned into losers. The data you get for your chart and the data in the TWS window ARE different! I have spent hours on the phone with IB and their tech people have been next to useless. Here is my theory that I think makes sense. Perhaps others on these boards can substantiate this further.

I believe (and have heard so from others) that the IB feed is not timestamped. Thus, your charting software must determine the boundaries of the bars or candles based on your PC clock which drifts and is notoriously inaccurate. This is a huge issue if you are using tick charts or volume bars for your trading. Furthermore, IB does not send you true data. They filter the data and send you only 2/3 to 3/4 of the actual trades. For example, the ratio between IB ticks and Esignal ticks is about 3.1 so 100 IB ticks is about the same as 310 ESignal ticks. This affects volumes which I have heard can be out by as much as a factor of 10. Also, historical IB data is apparently filtered in 2 sec intervals - not good if you trade off of tick charts or volume bars. There are several solutions. One, synchronize your PC clock to a known time source every 30 min or so; two, don't use tick charts; three, don't rely on volumes or four, get a true timestamped data feed. I am in the process of getting a new feed. I've had too many trades go bad on account of poor IB data. Hope this helps.
Cheers
Paul

 

[jhaughey]

market data fees

Interactivebrokers,

could you clarify what the market data fees are for Globex.
If I wanted to trade only the electronic markets for grains, energy and FX, would I still have to pay the full data subscription fees for CBOT, CME and NYMEX instead of one single fee for Globex?

thanks.

 

[idetkov]

GLOBEX is a part of US Securities and Commodities Bundle Non-professional - Level I (USD 10 if monthly commissions < USD 30). You do not need anything else.

 

[jhaughey]

thanks

 

[martin brown]

how many banks are market making for IDEALPRO Spot Forex?

 

[Trader_Herry]

Please see attachment.

1)
Bundled plans for "GLOBEX GBP USD" only costs 1.75 while other currency futures cost 3.00.
Is this a mistake?
Can anyone confirm it?

2)
Under unbundled plans, the exchange costs (and commissions) for every currency futures contract should be the same. How come there is 1 cent difference between EUR/GBP and others?

Thank you!

 

[rajibde]

Some basic questions

am planning to open an IB-Individual account and have the following basic questions.


1) I am based in the UK and would like to know if the deposit of the funds (equivalent to the US dollars required) can be made in the UK using GBP?

2) How much are the total funds required for a PDT account- is it $25000+2000?

3) Ref margins- if I buy 1000 shares (US share) @ $50 per share -with a total value of $50000 with the intention to day trade-what is the total amount from my funds that will be blocked until I close the position. For the sake of example lets say it is an ‘Apple share’- AAPL.

4) The demo a/c (TWS Demo) from the IB web does not seem to work- it has a default username and password but it goes through repeated login process continuously but does not actually log in- am I missing something?

Please can IB respond to my query?
Regards

Raj

 

[JillyB]

I have a question too, if anyone can answer it.

At the moment I spreadbet with CMC. I go long and short on the DJI.

Can I do the same sort of trades with Interactive Brokers. I can't seem to find any specific details about shorting or trading the DJI on their site.

 

[frugi]

Jilly the DJI is a cash index and as such is not an exchange-traded product.

Your options would be to trade DIA (ETF that mimics the Dow) or YM (mini Dow futures). The trouble with trading DIA is the PDT rule (you need $25k to day trade it) and the poor leverage compared to futures. YM trades at $5 per point (per lot) with a 1 pt spread & initial margin c$2400 per lot. It would imho suit your system perfectly.

 

[rols]

I have a question too, if anyone can answer it.

At the moment I spreadbet with CMC. I go long and short on the DJI.

Can I do the same sort of trades with Interactive Brokers. I can't seem to find any specific details about shorting or trading the DJI on their site.

Assuming naughty bunnies are eligible for an account with IB then the answer is yes but you would be trading the YM ( emini future of DJIA) as the index itself isn't tradeable .

One YM point = $5.00

http://www.interactivebrokers.com/en/trading/marginRequirements/margin_amer.php?ib_entity=uk

or you could try ETFs - DIA (Diamonds)

http://www.interactivebrokers.com/en/trading/etfs.php?exch=cboe

 

[JillyB]

Thanks Frugi and Rols for your advice.

I'm now wondering if I'm better staying with spread-betting. Yes I have the spreads to contend with, which if you're at £10 per point is £40 per trade. But it does suit the system I've worked out for trading. If I changed to an Emini or futures trading, then I don't know how the system would perform. It's geared to trading the DJI.

I just wish they would call it something other than 'Spread-betting'. I hate the name and people don't seem to consider you a 'real' trader if you spread-bet.

 

[Interactive Brokers]

Reply to your question

am planning to open an IB-Individual account and have the following basic questions.


1) I am based in the UK and would like to know if the deposit of the funds (equivalent to the US dollars required) can be made in the UK using GBP?



2) How much are the total funds required for a PDT account- is it $25000+2000?



3) Ref margins- if I buy 1000 shares (US share) @ $50 per share -with a total value of $50000 with the intention to day trade-what is the total amount from my funds that will be blocked until I close the position. For the sake of example lets say it is an ‘Apple share’- AAPL.



4) The demo a/c (TWS Demo) from the IB web does not seem to work- it has a default username and password but it goes through repeated login process continuously but does not actually log in- am I missing something?



Please can IB respond to my query?
Regards

Raj

• 
  Answers to your questions are as follows:
  
  1. ANSWER: Yes, you can choose GBP or any of the other base currencies we support to fund your IB account.
  
  2. ANSWER: In order to day trade, the account must have at least 25,000 USD in equity, where equity includes cash and stock, but does not include option or warrant value.
  
  3. ANSWER: If you meet the Pattern Day Trading requirements, inner day (day trade) you will get a 4:1 margin requirement. And near the close, and overnight your account will go back down to 2:1 (Reg., T) margin ratio.
  
  For example,
  
  BUY 1000 x 50 AAPL = 50,000
  Margin requirement =
  
  - Near the close and overnight (Reg., T) = 25,000 (2:1)
  - Pattern Day Trading Margin = 12,500 (4:1)
  
  4. ANSWER: If the DEMO application freezes then it could be that you are not running/enabling the correct JAVA application.

 

[rols]

Thanks Frugi and Rols for your advice.

I'm now wondering if I'm better staying with spread-betting. Yes I have the spreads to contend with, which if you're at £10 per point is £40 per trade. But it does suit the system I've worked out for trading. If I changed to an Emini or futures trading, then I don't know how the system would perform. It's geared to trading the DJI.

I just wish they would call it something other than 'Spread-betting'. I hate the name and people don't seem to consider you a 'real' trader if you spread-bet.

Is your system EOD? Then you could use the free data and backtester from www.prorealtime.com with the YMXXXX continuous contract (only includes data from regular market hours - same period as DJI) and see how they differ. You can also overlay the two on the same chart.

PS Nice website!

 

[Interactive Brokers]

Jilly the DJI is a cash index and as such is not an exchange-traded product.

Your options would be to trade DIA (ETF that mimics the Dow) or YM (mini Dow futures). The trouble with trading DIA is the PDT rule (you need $25k to day trade it) and the poor leverage compared to futures. YM trades at $5 per point (per lot) with a 1 pt spread & initial margin c$2400 per lot. It would imho suit your system perfectly.

Correction,

Day Trade: any trade pair wherein a position in a security (stock, single-stock future (SSF), bond or stock option) is increased ("opened") and thereafter decreased ("closed") within the same trading session.

That is, not futures, exclusive of single stock futures. Thus, you do not need a minimum of $25,000 in your account.

 

[frugi]

Jilly,

I understand your concerns and they are common to folk who cross over from SB to direct access. At the moment you are trading an artificial market created by the SB firm. The SB firm's Dow cash quote is actually based on the futures price but then roughly brought in line with the cash index, presumably by subtracting a fixed number to account for fair value, +/- whatever their devious algorithms also throw into the mix.

Meanwhile your signals are generated by the cash index OHLC (I think?).

Why not run a parallel system that generates its signals from the futures price, using the same time period as you do for cash, e.g. 14:30-21:00. Then paper trade entries and exits also using futures. I think you will be pleasantly surprised, though the transition of course means more work.

Edit: Oops I see rols beat me to it.

IB,

Sorry if it looked like I was including index futures when I said "The trouble with trading DIA is the PDT rule [...] and the poor leverage compared to futures" as I know one of the great benefits of index futures is their exemption from it. Thanks for the clarification.

 

[Interactive Brokers]

Thanks Frugi and Rols for your advice.

I'm now wondering if I'm better staying with spread-betting. Yes I have the spreads to contend with, which if you're at £10 per point is £40 per trade. But it does suit the system I've worked out for trading. If I changed to an Emini or futures trading, then I don't know how the system would perform. It's geared to trading the DJI.

I just wish they would call it something other than 'Spread-betting'. I hate the name and people don't seem to consider you a 'real' trader if you spread-bet.

For your reference, some things to consider when comparing spread betting vs., Direct Market Access.

1. If you spread bet, yes, your initial investment (e.g., GBP 10 point) may be GBP 40 per trade. Although, you can easily loose more than you have budgeted to trade.
2. Your spreads are usually made up by your Spread Trading company. IB offers Direct Market Access. Moreover, we do not get in the middle of your spread.
3. Spread Trading company's usually only support Limit and market orders. IB supports over 35 order types.
4. IB provides you account protection up to USD 30 million.
5. When you trade regulated futures or indices you need to refer to the minimum tick of the product. That is, look at all of the metrics before you decide.

For example,

FTSE 100 future particulars:

- Unit of trading Contract Valued at £10 per index point (e.g. value £65,000 at 6500.0)
- Quotation Index points (eg 6500.0)
- Minimum price movement (tick size and value) 0.5 (£5.00)

IB Commissions to trade FTSE 100 future:

- £1.70 per side (£3.40 roundtrip); This includes, brokerage, clearing, exchange, technology and regulatory fees.

NOTE: IB provides Direct Access, i.e., you transparently trade in the market and view prices. IB does not get in the middle of the spread. Rather you trade directly on Euronext. Further you can improve the quotes on the screen.

Example of making one tick on the FTSE future:

+£5.00 Trader makes one tick (0.50 = £5.00)
- £3.40 IB roundtrip commissions (£1.70 x 2)
--------------------------
+1.60 Net Profit when using IB i.e., if you make one PLUS tick on the FTSE future

Other costs and/or benefits when using IB:

Nil = To use any of the 30 plus order types we support.
NIl = IB Chart Trader and Charting package
Nil = Technology
Nil = Technology upgrades
Nil = Support
Nil = To attend our training Workshops in Central London
$10.00 = Minimum brokerage fee per month
€5.00 = Live market data per month (e.g., Euronext price feeds).

£3,500= Minimum deposit to open an account.

Also, IB pay interest on your funds on deposit.


You make the choice.

 

[Interactive Brokers]

Is your system EOD? Then you could use the free data and backtester from www.prorealtime.com with the YMXXXX continuous contract (only includes data from regular market hours - same period as DJI) and see how they differ. You can also overlay the two on the same chart.

PS Nice website!

Please can you define what the acronym EOD stands for?

 

[rols]

Please can you define what the acronym EOD stands for?

END OF DAY

 

[JillyB]

For your reference, some things to consider when comparing spread betting vs., Direct Market Access.

1. If you spread bet, yes, your initial investment (e.g., GBP 10 point) may be GBP 40 per trade. Although, you can easily loose more than you have budgeted to trade.
2. Your spreads are usually made up by your Spread Trading company. IB offers Direct Market Access. Moreover, we do not get in the middle of your spread.
3. Spread Trading company's usually only support Limit and market orders. IB supports over 35 order types.
4. IB provides you account protection up to USD 30 million.
5. When you trade regulated futures or indices you need to refer to the minimum tick of the product. That is, look at all of the metrics before you decide.

For example,

FTSE 100 future particulars:

- Unit of trading Contract Valued at £10 per index point (e.g. value £65,000 at 6500.0)
- Quotation Index points (eg 6500.0)
- Minimum price movement (tick size and value) 0.5 (£5.00)

IB Commissions to trade FTSE 100 future:

- £1.70 per side (£3.40 roundtrip); This includes, brokerage, clearing, exchange, technology and regulatory fees.

NOTE: IB provides Direct Access, i.e., you transparently trade in the market and view prices. IB does not get in the middle of the spread. Rather you trade directly on Euronext. Further you can improve the quotes on the screen.

Example of making one tick on the FTSE future:

+£5.00 Trader makes one tick (0.50 = £5.00)
- £3.40 IB roundtrip commissions (£1.70 x 2)
--------------------------
+1.60 Net Profit when using IB i.e., if you make one PLUS tick on the FTSE future

Other costs and/or benefits when using IB:

Nil = To use any of the 30 plus order types we support.
NIl = IB Chart Trader and Charting package
Nil = Technology
Nil = Technology upgrades
Nil = Support
Nil = To attend our training Workshops in Central London
$10.00 = Minimum brokerage fee per month
€5.00 = Live market data per month (e.g., Euronext price feeds).

£3,500= Minimum deposit to open an account.

Also, IB pay interest on your funds on deposit.


You make the choice.

Thanks for such a comprehensive reply. Do you have a demo account facility which includes the charting software? I'm asking this so I could try out my trading system on your charts/prices and get used to your layouts.

 

[Interactive Brokers]

Thanks for such a comprehensive reply. Do you have a demo account facility which includes the charting software? I'm asking this so I could try out my trading system on your charts/prices and get used to your layouts.

Jil:

Please refer to our home page, www.interactivebrokers.com, i.e., at the bottom there is button you can click to view a demo of our Trader Workstation.