Interactive Brokers.......

ChartMan

Legendary member
5,580 46
I'v copied this here from a reply on the AIQ groups, from David Johnson.It may be of interest....especially if the same is offered by IB uk........
Another approach to consider. I use Interactive Brokers (Interactivebrokers.com), the best by far of the 9 brokers I have held accounts with. IB lets you use a "One Cancels All - OCA) order. You can put as many orders together as you want (say 5), and code them each with the same key word (I usually just use the ticker symbol). When any one of these 5 orders is executed, the other 4 are immediately cancelled. Several benefits from this arrangement. First, since only one order hits the market, you only have to have enough capital for any one of the 5 orders, not all 5. If you have a strategy that picks 5 stocks for the next day, but you can only afford one position, then you can OCA all 5 and whichever hits the buy stop first the next day will get filled. Another way is to set a Sell Limit profit target for a long, and also OCA it with a Sell Stop order for a stop loss. Since it uses a stop, the market makers can't see it (its held on the IB server until the price is hit). For sells, the trigger is when the ASK gets there, to prevent dropping the Bid setting off stops. All in all, this system has served me well.

And one more thing. Its direct access, with live Bid/Ask/Size quotes, and it only cost $0.01 per share. This means any 100 shares of anything is $1.00 in, and $1.00 out. What this does is completely (almost) take commissions out of the equation, since any $.02 move in the stock gets you back to breakeven. I encourage you to check out their website for more info. You can download their Traders Workstation Java software for free and run the simulator to see how you like it before opening an account. And no, I'm not getting a referral fee. Just trying to save a few people the two years of effort it took me to find an outstanding broker that charges fantastic prices.
 

Miki

Member
98 1
It is worth pointing out that IB is an execution broker only, support sucks (they will not hold your hand – if you are newbie) and they don’t provide real-time charts.

But, after being with them for the past year – I wouldn’t have it any other way.

Executions are fast – under a second (I play Nasdaq stocks only).

I small note of warning: make sure you have a backup broker – handy if the IB system goes down.

If you are a part-time trader and trying to get an education very cheaply – this is the place to be.

Trading 100 shares all day long can teach you more than all the gurus (selling their ‘systems’) out there on the net.

When you develop a successful trading strategy you can then start thinking about joining the full-time big boys and their toys: Realtick, Tradestation, etc.

Just my .02
 

monarch

Member
54 0
Thank you Chartman & Mikki for all your valuable postings.

I like most have been looking for the best way to start trading without spending a fortune on the big boys systems until I have time to develop a profitable system I can work with.

The postings above provide the info I have been looking for.
As Chartman said, it has saved days, months of looking at different systems, (which I have done already) and is endorsed by people who are actually doing it day in day out.

Do you have any suggestions for real time charts, mainly Nasdaq?
Once again thank you for your help. ;)

Nick
 

Ormondroyd

Newbie
9 0
So lets get this right. IB let traders place multiple orders on exchange but with only enough collateral cover for one of them. Sounds fantastic, where do I sign...!

From a company risk point of view that sounds utterly preposterous. Explain further. I use Easy2Trade and although they dont allow OCAs I'm quite content in the fact taht I'm not going to get slammed for extra margin at any time due to some type of system failure. But then again IB obviously have such a system, which never ever goes down (oh wait, they dont... thanks Miki).

On a side note, Easy2Trade's trading system is absolutely impeccable, tremendous system stability so well done to them.
 

spoon102

Member
60 0
best real-time charts for nasdaq is q-charts. visit www.quote.com.

NB I also have an account with IB to use direct access trading. I have had absolutely no probs with them

Darren
 

Miki

Member
98 1
OCA orders

OCA orders are designed for real traders and not the newbies who think they are traders.

It is a powerful facility and very simple to understand.

If you need to “cut your losses and let your profits ride” learn how to use OCA.

This link will provide you with all you need to know:

http://www.mrswing.com/en/oca-order.html?showwhat=ed

Good trading
 

rejji

Junior member
24 0
OCA trading !! This is not only risky for the individual who places that type of order but for all clients with the broker. We all saw the fantastic falls and rises of recent days, and I for one do not believe that subsequent orders are GUARANTEED to be removed before being filled in fast market conditions.
What would this mean to clients of IB?
Well if I have £100k with them and place 5 buy orders with lower limits to trade up to my max on one of them. The market starts a sudden decline, the IB system goes down (for whatever reason) and all my orders are filled, with the market continuing to go against me and quickly. I only have £100K, so where does the cash come from to settle with the market? The cash has to come from other deposits made by other clients!!! In my opinion this is a recipe for disaster, and how many other brokers have already shown us these dangers.

On a final note - I do not get anything for consistantly plugging the same broker time after time either - (CM)
 

flea

Active member
160 22
Whats the problem?

I really can't see what your problem is with IB allowing OCA orders. IB won't take the chance that you are getting in over your head, If you haven't got the margin necessary margin they won't allow the order to be executed.
One thing i've never heard IB accused of, is a frivilous approach to risk, they've been in business a long time and believe me this is because they are conservative about the amount of risk they allow their clients to take.
In an age of electronic dealing age no system is immune to breakdown. I've been with them for over 6 months now and never had a system failure except when MY internet connection has gone down.
OCA orders are something they feel happy with and to slam them because they offer something your broker doesn't seems strange to me. You don't have to use it.
It seems to me your post is purely to promote Easy2Trade
 

Ormondroyd

Newbie
9 0
It's not about Easy2Trade at all Flea. My question to you is wanting more info about the OCA from the 'experts' who use the facility.

Do the orders actually sit on the exchange, or are they monitored by IB and then executed once limits are touched? If the former then I'd like to know how they ensure NO multiple fills on five totally independent markets? If the latter then I suppose that makes more sense from a risk point of view, alas youre then totally reliant on the efficiency of the broker and the reliability of the system. I think it's only fair to ask, especially having known traders who have been seriously hurt financially by wayward traders due to the lack of segregation of individual client margin cash (I guess Rejji knows exactly what I'm on about here).


As for promoting brokers, you only need to look at the man who started this thread for advice on how to maintain one-eyed support for a particular broker.
 

rejji

Junior member
24 0
Ormondroyd - You have hit the nail on the head from my point of view regarding risk and the management of. After all it is my hard earned cash, and I want to be assured that under no circumstances is it at risk (well only when I place the trade anyway). I often use OCO orders to either take my profit or limit my loss, but again I have to be careful to leave enough points between the two or I risk being filled on both orders if the market fluctuates massively within a second. I know this has the opportunity to happen as yesterday I saw multiple orders hit the market at exactly the same time (same second) blisting the depth of market to the tune of 13.5 points. 2 seconds later the market was back where it was.
Strange I admit but these things can and do happen.
 

flea

Active member
160 22
Apology

Firstly let me apologise for misunderstaning your point and accusing you of promoting Easy2Trade.

I don't use OCA orders on IB but I will try and find a answer to your question.

If you don't have the required margin in your account the order will be refused but I can see the problem if the orders are held at the exchcane and the IB system goes down.

I can't agree that Chartman is prejudice about brokers. As far as I can see he doesn't even use IB but spread bets. I've always found his views well thought out and balanced.

I can see where there might be a misunderstanding regarding his post but if you read it again, you will see that he's copied and pasted someone elses views, they are not his own views as far as I can tell
 

Ormondroyd

Newbie
9 0
Cheers flea, if you can find that out I'd be very grateful. Oh and well done for that lovely bass on the new album ;)

Just a quick one about Chartman, I appreciate he's knowledgeable on his particular area of expertise but I've seen too much reference to IB on his posts in the past to believe he's neutral. That's my opinion anyway.
 

options

Senior member
2,374 218
In defence of Chartman. (Not that he actually needs any defence).
He has no vested interest in any brokers he mentions, other than getting us a good deal.
Last year for instance he arranged a discount at Easy2trade for members of Trade2win. (I was already with them at the time. But a quick phone call To Easy2 and the discount was mine).
I have been with IB for a few months now, I changed because of the better commision rates. Half as much as Easy2's.
Only thing I am not happy with is the very bad telephone back up service. Computer crashed last week and I find myself talking to a guy in sweeden! It needs to be local to work quickly, or have the same set up that Easy2 have. Which is to close out all trades if you lose connection. (Although in practise this didn't work all the time.)
Other than that everything is fine.
And having been with both. Transaction time is quicker with IB.

Oh, and Easy2's system is not perfect. I've lost connection with them before now and it's cost me money. I have yet to come across the 'perfect' set up.

Options.
 
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Miki

Member
98 1
Unless you know how to trade – don’t trade, people!

No wonder 90% of traders blow out.

It’s a job, very serious job and it takes time to learn the tools of the trade.

If you are not happy to use a hammer with you nails – don’t do it – use a rock.

But, don’t rubbish the hammer manufacturer.

IB is a number one broker – and there is a good reason for that – they allow all the people to take trading risks – not only the people with deep pockets.

If your account is in danger of blowing out – there will terminate you bad trade if at all possible.

But ultimately it is you who is responsible for your actions – if you mess up – own up and don’t blame anybody else for your mistakes.

There are many types of orders, use the orders you comfortable with – that’s it.
 

options

Senior member
2,374 218
Don't know what you are implying Miki,
but no broker is 100% perfect.
If you remember that, it may save you money in the future.

Options
 
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