Is IB safe if I lose my connection whilst in a trade?

[Chuckie]

Hi,

I have a question about Interactive Brokers. I have been using them as my data feed for a little while after coming back to trading following a little break. I used to use a US broker but fancy trying IB as it can be funded in sterling, and exchanges can easily be made.

My worry though is that if I lose my internet connection they won't answer the phone if I am in the middle of a trade. Is this the case? I will be using Ninjatrader or Bracket trader as the front end software. What will happen to my stop orders?

Thanks.

 

[timsk]

Hi Chuckie,
I'm not entirely clear about your question, but my answer will tell you if I've understood you correctly - or not! If your connection to the net goes down and you have a trade running, it will continue to run and your stop orders will remain in play unless activated. If you want to close the trade, you can do so by phone, but there is an admin charge of U.S.$30.00 and it takes a bit of time. (Security checks etc.) If you're in the U.K., you phone a number in Switzerland up 'til 7.00pm and a number in the U.S. thereafter. Only had to do it once when I had a power cut which took out both PC's and the UPS! Very scary at the time, but it worked out o.k. in the end.
HTH,
Tim.

 

[Chuckie]

Thanks for the reply. Yes, basically what I want to know is whether my stops will still be active if my net connection goes. Some stops are held on your own computer and some are held on the broker's servers. Do you know what the setup is with IB?

Thanks again

 

[Splitlink]

Thanks for the reply. Yes, basically what I want to know is whether my stops will still be active if my net connection goes. Some stops are held on your own computer and some are held on the broker's servers. Do you know what the setup is with IB?

Thanks again

The stops are placed at the exchange, itself, so if either you or IB (very unlikely, but possible) go down, the stops are already in place.

The only exception, as far as I know, are the trailing stops. These are not accepted by the exchanges and IB does, as a client service. They do advise against them because if their site goes down they will not hold themselves responsible for closing a trailing stop.

 

[Trader333]

My worry though is that if I lose my internet connection they won't answer the phone if I am in the middle of a trade. Is this the case?

You should be able to close a trade in under 30 seconds by telephone but I suggest that you use the US telephone numbers to do so.


Paul

 

[Splitlink]

Like most things, Paul, it's practice and the unexpected. I've never had to to do that and I doubt that I could get it done in quick time. This, to me, would be one of those Black Swan things.

Split

 

[timsk]

Yeah, I'm with Split on this one. Forget 30 seconds, it took me nearer 30 minutes to close my trade, lol! I'm sure you'd do it much faster than me Paul but, by the time you've pressed 1 for this, 2 for that, keyed in your A/C No., tried desperately to remember the blood group of great aunt Ethel and other such security questions, waited for I.B. to check their system for the trade(s) you want closing, repeat back to you your instructions to them for confirmation . . . etc., etc., you're looking at upwards of several minutes at the very least, IMO.
Tim.

 

[Trader333]

Tim,

Which number were you using ?


Paul

 

[timsk]

Hi Paul,
This happened 2 or 3 months ago and I don't recall if I phoned Switzerland or the U.S. Either way, the two numbers I have are those that I.B. provide on their web site and I have printed out in a large font and readily at hand for just such an emergency.
Tim.

 

[Splitlink]

Hi Paul,
This happened 2 or 3 months ago and I don't recall if I phoned Switzerland or the U.S. Either way, the two numbers I have are those that I.B. provide on their web site and I have printed out in a large font and readily at hand for just such an emergency.
Tim.

They'll have changed the number several times, by then, and it will take you another thirty minutes.

 

[nine]

The simple answer is:

- make the effort to read the documentation and ensure that you use orders that are placed with IB and not resident on your order entry tool.

Then, if the internet or your pc goes down you don't care, just let the position play out. If concerned call IB and get them to close any remaining positions and outstanding orders. This should be an extremely rare occurrence (once in the last 5 years for me) so other than using the correct orders and having the numbers written down don't spend too long on it.

 

[BSD]

Forget 30 seconds, it took me nearer 30 minutes to close my trade, lol! I'm sure you'd do it much faster than me Paul but, by the time you've pressed 1 for this, 2 for that, keyed in your A/C No., tried desperately to remember the blood group of great aunt Ethel and other such security questions, waited for I.B. to check their system for the trade(s) you want closing, repeat back to you your instructions to them for confirmation . . . etc., etc.,

What will happen to my stop orders?

IB has had problems in the past with stop orders not being triggered where GLOBEX is concerned, as amazing and indeed primitive as it sounds but GLOBEX do not accept stop orders, so IB simulates them, and apparently things have gone wrong there occasionaly in the past as per this German thread:

Probleme mit Stop Orders bei Interactive Brokers - Elite Trading

 

[Splitlink]

IB has had problems in the past with stop orders not being triggered where GLOBEX is concerned, as amazing and indeed primitive as it sounds but GLOBEX do not accept stop orders, so IB simulates them, and apparently things have gone wrong there occasionaly in the past as per this German thread:

Probleme mit Stop Orders bei Interactive Brokers - Elite Trading

Thanks for that. I did not take Globex into consideration.

 

[BSD]

Hi Split, are you otherwise satisfied at IB ?

I'm always just on the verge of opening an account with them, but then their platform always manages to scare me off at the last minute

Is their charting accceptable ?

Thanks mate

 

[nine]

The simple solution to globex is to use your own stop limit orders (although I think IB might have resolved that issue). Just decide how many points the limit must be for a fill. I recall deciding to use 10 points once when I had to specify it to my broker for overnight orders.

Regarding the charting --- the current offering is pretty limited in various ways --- I use SierraChart. Others use EnsignSoftware or other add on solutions in preference to IB's own charts.

 

[Splitlink]

Hi Split, are you otherwise satisfied at IB ?

I'm always just on the verge of opening an account with them, but then their platform always manages to scare me off at the last minute

Is their charting accceptable ?

Thanks mate

I have not traded there for a long time but not because of them. I was not good enough to take the losses, that's the honest truth.

I went back to spreadbetting and have not bothered to go back to IB, although I am trading much better these days. I am not a professional, but a retired guy who enjoys trading, but not with the relatively large amounts that buying contracts involves.

You have to take on board the idea that every contract traded involves ten pounds ( or $, Euros, whatever exchange you are on) per point.

Is IB easy? Once you are set up and the TWS platform is on display---yes. Very.

IB, though, is nowhere near user friendly as far as instructions are concerned, unless they have improved lately.

The stop loss can be set up at once, along with your entry price, and the two go off at once when you touch the buy button. The problem with site shutdowns, that we were talking about before, should not arise, really, except for Globex, as you mentioned. That would be for holding overnight, which I did not do.

HTH

Split

 

[BSD]

Thanks guys

nine, interesting RE the charting, will look into that.

Split, sounds like th ebest of all worlds, enjyoing the sun in lovely Spain, retired, no worries, and making extra money trading, what more could one want ?

Lovely

 

[Splitlink]

Thanks guys

nine, interesting RE the charting, will look into that.

Split, sounds like th ebest of all worlds, enjyoing the sun in lovely Spain, retired, no worries, and making extra money trading, what more could one want ?

Lovely

No worries? We've all got those!

 

[BSD]

When I feel a worry surface I run for advice to Mr. Bobby Mcferrin very quickly

YouTube - Bobby Mcferrin - Don't Worry, Be Happy