How does it work?

[Kevin21]

Hey,
i've been thinking about ditching spread betting and getting an account with interactive brokers, but i'm a little bit confused by it all and would appreciated it if someone could shed some light onto it for me. Well my question is how does it actually work compared to spread betting? If i wanted to trade the ftse spread betting then i'd just decided how much i want to go per point, but whats the crack with IB?

 

[Splitlink]

The crack with IB is that it costs ten pounds per point to trade it. Apart from that you pay tax, but only if your profits go above the minimum level so if you lose money you have no worries on that score.

The bottom line is. Are you making money with the spreadbetting company? If not, think carefully before trading with IB. They are straight, no problems with them, but if you don't know, exactly, how you are going to enter and exit trades you can lose a lot of money in a short time.

Split

 

[Kevin21]

is 10 per point the minimum?

 

[Splitlink]

For London, yes.They work on contracts, you see. However, you can trade the Stockx (not sure of spelling) index for 10 euros per point, which works out cheaper.

There is a forum on IB on this site. Look at the brokers section. IB has a rep. keeping an eye on it to answer questions.

Split