Broker for $500K account size

[amazingIndustry]

I mentioned it already in a previous post.

a) other securID (safety login device), not sure thats still the case but thats what happened before. A large account was promptly sent an electronic securID device a much smaller account a check-card format paper clip. Ask Def whether they consolidated this procedure or not.

b) Better customer service (but that is only my perception), the phones are picked up promptly when I call(ed), server hubs can easily be changed without much arguing, and a number other services that I read others complain about did not apply to me at all in my long time with IB.

You do not sound like a pro and all I can say is I would be very careful about your hopes of "making a killing" with shorting hard-to-borrow names. I would not put this item too high up in your priority list unless you already specialize in trading those.

Dream on if you even think for a second that the MLs out there get you lower commissions than IB. IB is in the discount brokerage business for a reason, and I would strongly assume Def does not drive Aston Martin which was financed through bonus payments in return for charging clients ridiculous commission rates. At least I have not seen him in an Aston around Pacific Place ;-) (and if he had one it would most likely not be from the above suggested source. I also did not hear that IB sponsors expensive "happenings" in Thailand or Macau to keep their clientele entertained. But maybe I did not make the cut ;-)

Quote from tonyzhou:

IB's minimum is $10K and offer commission based on volume. Besides that, any difference IB treat its customers with different size?

I think it might exists another good fit for people trading his own $500K money. That's the purpose.

For example, I hope to get excellent hard to borrow locations. If ML pro did better job than IB and entry price tag is $500K, then I can get some advantage than others with less money.

Maybe ML pro can offer lower commission than IB, that's another advantage.

And if introducing broker can add another level of fund withdraw security because they know me, then any other person cannot use fake identity or compromise my password, then that's another advantage.

 

[amazingIndustry]

of course there is "something in the law" preventing Timber Hill from being funded by client segregated funds in IB LLC. Whether its impossible is an entirely different question (see MAN).

Quote from Daal:

I don't think there is anything in the law that prevents IB LLC from sending equity capital to Timber Hill, thus increasing IB LLC leverage and financial risk

 

[macintash]

Quote from amazingIndustry:

of course there is "something in the law" preventing Timber Hill from being funded by client segregated funds in IB LLC. Whether its impossible is an entirely different question (see MAN).

Sounds like some MF global talk..

 

[Aok]

OP.

Stick with IB.

Just about anywhere else you go you WILL be paying more in commish and that seemingly is one of your main qualifiers.

500k is nothing to sneeze at but for prime brokers that is not even chicken feed.

 

[jackpearson]

Bottom line: Every broker says they're the safest when things are going fine. Then when things don't,.........

You're taking a leap of faith with anything over SIPC limits.

 

[tonyzhou]

Quote from jackpearson:

Bottom line: Every broker says they're the safest when things are going fine. Then when things don't,.........

You're taking a leap of faith with anything over SIPC limits.

My understanding, SIPC jump in in case broker failure. But if damage caused by identity theft, maybe nobody will help

 

[comintel]

Quote from tonyzhou:

My understanding, SIPC jump in in case broker failure. But if damage caused by identity theft, maybe nobody will help

Right - in that case, you have to sue/arbitrate with your broker for negligence in letting somebody else withdraw from your account.

But if they claim you were partly at fault in not taking proper precautions to keep your password secret or whatever, you might lose or have to settle 50/50 or some such.

At least with IB you have a decent level of security, apparently. This is not the case with all brokers. In the case of one broker which I will not name, your password is stored in plain text right in a configuration file.

 

[Swan Noir]

I don't think he was suggesting that segregated funds would be transferred but, in fact, there is no law or regulation preventing IB (or any B/D) from taking a healthy chunk of their capital that is above their net capital requirement and investing it in an affiliated company such as TH.

The result of that type of transaction can take a strong balance sheet down a notch or two and the foundation you depended on is simply not as robust. A good balance sheet is just the start of your evaluation. You want them to have a real business model -- they do -- and risk controls that make sense. I'm convinced this is a quite solid retail firm. You can't compare them to Morgan or Barclay's but they stand up pretty well against most who will take the retail customer and give him a wide range of reasonably priced services.

Quote from amazingIndustry:

of course there is "something in the law" preventing Timber Hill from being funded by client segregated funds in IB LLC. Whether its impossible is an entirely different question (see MAN).

 

[Options12]

Quote from def:

No, I am claiming IB LLC does conduct proprietary trading and that IB LLC is a separate entity.

def, is your statement correct?

That is, IB LLC isn't the proprietary trading subsidiary of IBG LLC, is it?

 

[mastacoli71]

Quote from rmorse:

ML Edge is a retail product that we don't offer. What we offer is ML Professional that is a division of B of A Merrill Lynch designed to service the needs of Broker Dealers, Hedge Funds and Professional traders. ML Pro does not offer IRAs or Reg-T accounts. They offer Prime Brokerage Services to Market Makers, JBOs and customer through Customer Portfolio Margin.

If as a customer you tried to go direct to ML Pro, they would not accept your account unless it was very large. Even then, without a direct representative on your account, good luck getting anything done. As the Introducing Broker, we are responsible for servicing the account for the client to the prime broker. We also buy volume in bulk and mark it up to our clients. If you could go direct, you'd likely pay the same or more for commission's. By going through our relationship, you get our service for the same or less than going direct. We have direct contacts for dealing with them.

As to comparing the availability of hard to borrow stock between IB and ML, I have no idea which would be better in rates and size of available locates in a specific security. I'm sure IB is very good. ML is consider one of the best. When I was a GSEC client (Part of Goldman Sachs) as a market maker, there were times I was getting bought in and my friends at ML Pro were not.

Bob

I traded through GSEC for 4 years and got bought in only once during the financial crisis. There were always warnings coming out that I "could" be bought in but nothing ever happened.