Best Thread Interactive Brokers

[nine]

There are now also the lumber options to limit the risk.

Maybe i have to open a competition: the 1000nd voter gets a trip New-York to Paris?

Note what happens to the price of lumber options when the market goes lock limit. At that time you will discover what thin and premium really mean. And risk.

 

[wmbelg]

Why are you so fixated with wanting to trade lumber ?


Paul

Because prices are now low and you can bet now for a long run up.

Let's say you bought oil at 145$ in a very liquid market and you are now at 50$: you can get big losses in a liquid market too. I traded oil when it came back into the 90$ area (at that time every one was convinced it would not drop further) , and now again in the below 50$ area.
(every trade was positive, but very limited)

For lumber the boundaries are probably 150 to 450$, which is the same span as for oil 50 to 150$.

On indexes like Dj, I trade on very short base (minutes), to get a little profit because I don't know were the market is going in a longer run.

But when something is at the bottom range, I can risk to buy, say the november 2009 lumber contract and what it run up for a longer run.
I wouldn't buy lumber at 450$; but at 200$ risk is limited. And my account covers the full amount of one contract, so i can ride it until 1$ (probably not a good idea), but all other contract are around 100k$ (ok you have minis now, but try to trade the mini copper, spread too high))

The products i trade are not always the same, they change with the price and increase in risk.
I usually come in the market after a very big move, then there is probability for a move in teh other direction.

 

[def]

Do you know that the contracts are physically delivered and pit traded (ie. not electronic)?

 

[wmbelg]

Do you know that the contracts are physically delivered and pit traded (ie. not electronic)?

They are since a month or so also electronically traded. And volume is not bad for that market.

If you buy oranje juce, that is also physically delivered, but i don't think i will put in place a refrigerator in my basement.

 

[goodtyneguy]

Mr Perez or def,

1) Could you kindly provide us with a list of SIPP administrators/trustees that you work with.

2) Has IB any plans to become an ISA plan manager i.e offer a stocks and shares ISA account. I feel sure if you did you would absolutely "clean up" in this lucrative market.(Maybe one or two other members would like to express their interest in this)?

Thanks

bump

 

[ibj]

bump

IB is currently designing a SIPP account structure. We are in discussions with several SIPP administrators who will manage the accounts. Until the account is available, and the negotiations have been finalized, it would be inappropriate to discuss which specific administrators will work with us.

We do not have any plans to manage UK tax advantaged accounts directly. IB's strength is in efficient brokerage and risk management technologies so it makes more sense to focus on these areas, and partner with firms with complementary skills. Accordingly, we will work with recognized firms who are both proficient and efficient in the complexities of tax regulations, and who will provide the controls and reporting required by HM Revenue.

 

[goodtyneguy]

IB is currently designing a SIPP account structure. We are in discussions with several SIPP administrators who will manage the accounts. Until the account is available, and the negotiations have been finalized, it would be inappropriate to discuss which specific administrators will work with us.

We do not have any plans to manage UK tax advantaged accounts directly. IB's strength is in efficient brokerage and risk management technologies so it makes more sense to focus on these areas, and partner with firms with complementary skills. Accordingly, we will work with recognized firms who are both proficient and efficient in the complexities of tax regulations, and who will provide the controls and reporting required by HM Revenue.

Thank you for your reply.

1) Can you give me an idea of when the SIPP account is likely to become available and is it possible to pre-register in order to be notified of this event.

2) Are you curently in negotiations with a recognized firm to partner with in providing a solution for people wanting to trade/invest within an ISA environment or do you have any future plans to do this.

Thanks

 

[ibj]

Thank you for your reply.

1) Can you give me an idea of when the SIPP account is likely to become available and is it possible to pre-register in order to be notified of this event.

2) Are you curently in negotiations with a recognized firm to partner with in providing a solution for people wanting to trade/invest within an ISA environment or do you have any future plans to do this.

Thanks

We are expecting SIPPs by mid Q1, but possible even by end Q4 on a limited basis.
There will be a communique when the service is "live". We do not have any scheduled plans for ISA accounts because they seem to be generally smaller accounts than SIPPs.

 

[goodtyneguy]

We are expecting SIPPs by mid Q1, but possible even by end Q4 on a limited basis.
There will be a communique when the service is "live". We do not have any scheduled plans for ISA accounts because they seem to be generally smaller accounts than SIPPs.

Once you have a firm "live" date it would be helpful if you could post it here with the names of the administrators you have been able to establish a working partnership with.

The original tax advantaged account was a personal equity plan (PEP) which if a recall correctly came into being in the UK tax year 1997/1998. These were superceded by ISA accounts and the maximum contribution level was maintained at £7,000 p.a until April of this year when it was increased to £7,200. Therefore the maximum account size for those who have taken full advantage of the allowance would be £77,200. This of course does not take into account investment returns.

 

[Axler]

Not sure if this is the right place to post this but......

I'm trying to get Trader Workstation to show my P&L net of Commissions but can't seem to find the option anywhere, anyone know how to set it?

 

[samuelhogg]

I am interested in setting up an account with Interactive Brokers but I have 2 quick questions first.

1. I mainly day trade (Spreadbet) Index futures and FX, will the Pattern Day Trading Rules effect this type of trading with IB and will it effect the required minimum for the account?

2. Will my account be based in Sterling £?

Kind regards

 

[Hittfeld]

I am interested in setting up an account with Interactive Brokers but I have 2 quick questions first.

1. I mainly day trade (Spreadbet) Index futures and FX, will the Pattern Day Trading Rules effect this type of trading with IB and will it effect the required minimum for the account?

2. Will my account be based in Sterling £?

Kind regards

Re 1: I trade index futures in a sub 25 k account without being effected by PDT rule. To my knowledge this rule should be applied only to equity (shares), options on equity and futures on equity (SSFs).

Re 2: If you like. I know at least of 4 different accounts in 4 different base currencies ( 2 of those even hold by the very same person). And you can cange the base currency anytime.

Regards

Hittfeld

 

[samuelhogg]

Many thanks Hittfeld.
Will be applying for an account later today.
I will be able to trade futures and fx's on the same account won't I?

 

[Hittfeld]

Many thanks Hittfeld.
Will be applying for an account later today.
I will be able to trade futures and fx's on the same account won't I?

Well, that`s tricky to answer. Here is, what I understand: For all PRACTICAL purposes its one account, for all LEGAL aspects - and some margin aspects (1:6)- futures and equity for examples are 2 completely different underlying accounts (with separate protection and coverage).

The only problem with IB is: There is only one of èm, whilst I would need a second one for backup.

Regards

Hittfeld

 

[johnlvs2run]

Does IB charge for cancelled trades?

For example, there was a post that IB charges when a trade is not filled and is cancelled.

 

[samuelhogg]

Was this what you were after?

http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=uk

 

[johnlvs2run]

1) If I understand this correctly, the feel is $.12 for each cancel/modification of an order.

2) Busts are $50 to $1000 for each bust request in a month. A big concern is about clearly erroneous executions.
"Customers who receive an execution which they believe to be clearly erroneous and who wish to have IB petition the exchange or merket center to have the trade cancelled on their behalf are strongly encouraged to submit their request... (etc)"

There are posts on ET about IB having posted erroneous trades to customers accounts. According to the posts, when the customers brought this to IB's attention, the accounts were cancelled and none of the costs for the erroneous trades were returned. I don't see why customers should be charged for erroneous executions made by IB and not customers, if that indeed was/is the case. I've since found this thread on ET which helps to clarify IB's position. Forums - Nasdaq Busts and my $11,000 story That sounds fine to me. What I wonder about and as was posted on ET, are trades that have supposedly appeared on customer's accounts out of the blue, i.e. that were not made by the customers. Those sound like freak things that IB would not want to happen, but still it would be nice to see a response by IB, as there was not one by them on that thread.

3) Also could someone clarify about the IB fees for stocks
Maximum per order
0.5% of trade value plus exchange, ECN, and specialist fees
1,000 Shares @ USD 0.50 Share Price = USD 2.50

Does that mean 10,000 shares @ USD 5.00; would cost $250 for each trade?

 

[goodtyneguy]

We are expecting SIPPs by mid Q1, but possible even by end Q4 on a limited basis.
There will be a communique when the service is "live". We do not have any scheduled plans for ISA accounts because they seem to be generally smaller accounts than SIPPs.

I would appreciate it if you would oblige with an update.

TIA

 

[mutantcar]

ISAs

http://www.interactivebrokers.com/en/general/poll/poll.php?sid=1588

I would appreciate it if you would oblige with an update.

TIA

Well done for getting a response from IB on this goodtyneguy.

It's disappointing to hear they're not considering ISAs.

I hope anybody interested in this from IB have voted in their New Features poll:

http://www.interactivebrokers.com/en/general/poll/poll.php?sid=1588

There are 17 votes currently from people interested in ISAs. I couldn't find anything on a search for SIPP!

 

[goodtyneguy]

http://www.interactivebrokers.com/en/general/poll/poll.php?sid=1588

Well done for getting a response from IB on this goodtyneguy.

It's disappointing to hear they're not considering ISAs.

I hope anybody interested in this from IB have voted in their New Features poll:

http://www.interactivebrokers.com/en/general/poll/poll.php?sid=1588

There are 17 votes currently from people interested in ISAs. I couldn't find anything on a search for SIPP!

Thanks for the kind words, in fairness to IB they have consistently replied to queries since this thread started even though I had to bump my original enquiry. In my way of thinking if a company is not prepared to give one the time of day before one becomes a customer then that behaviour is unlikely to change by becoming a customer. That brings me on to your point about the poll, unfortunatley it's only for existing customers.

I think it is easier for them to conform to SIPP requirements because in the main this is probably just an IT issue i.e. developing their IT systems to restricit the activities that can take place within their universal account and electronically integrate with SIPP administrators. Once this becomes acceptable to the administrators they can accept responsibility for compliance issues and legal liability for the regulation of the SIPP.

As I understand it, (and of course I may be wrong)ISA regulation can not be farmed out to an independant administrator similar to the SIPP model. This would leave IB with the only option but to become a registered plan manager with HMRC. From a previous comment here from IB it appears this is something they are not prepared to embark upon. This is a real shame as IMO they would literally corner the market in ISA's based on what they have to offer in comparison to UK plan managers. They would probably have to increase their present fees to pay for the increased costs of structural changes and administration costs. I'd imagine they'd still remain very competitive if one considers IMO the extortionate costs of other ISA plan managers. That's if you can consider any of the UK offerings competitive e.g. who offers level two DMA to NYSE?

It is for the same reasons I expect their SIPP compliant account to be a big hit once it's launched.

Come in IB....