How can i trade CFDs in TWS?

kakao said:
Hello @def, thank you for reply.

Yes, i am permitted to trade CFD. But i can't it figure out, how can i trade CFDs in TWS. I could not find any tutorials for this. Would you make a mini tutorial for me? Maybe a video or a couple of Screenshots...
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try here:

Sorry don't see a video or tutorial. I'll mention the request for a video/tutorial but that will take some time. In the meantime, they trade just like any other product so any mosaic or TWS order entry video will suffice. For details try these links:

https://www.interactivebrokers.co.uk/en/index.php?f=39284
https://ibkb.interactivebrokers.com/node/1912
 
def said:
For wholesale clients, not an issue. For retail clients we have started to roll out margin. The amounts initially will be small due to licensing and regulatory requirements/restrictions on handing client money but I think you should be able to enroll and give it a shot. You should be able to trade CFDs with us though as an Australian.
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So On IB Australia people can trade CFds? on which stocks? USA? ASX? or other underlying also for LONG and SHORT position do you offer any cross margin??
 
def said:
For wholesale clients, not an issue. For retail clients we have started to roll out margin. The amounts initially will be small due to licensing and regulatory requirements/restrictions on handing client money but I think you should be able to enroll and give it a shot. You should be able to trade CFDs with us though as an Australian.
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For a giant broker like IB why is it too difficult to convince ASIC? other US brokers like Options express were offering Margin long time ago!
Also you giys forced AUS account holder to transfer the accounts to IB AUs from IB USA THUS LOOSING THE SIPC protection... WHY?
Also you stopped allowing Fx trading!
All in all it seems IB does not care about Australian clients
 
traderjo said:
For a giant broker like IB why is it too difficult to convince ASIC? other US brokers like Options express were offering Margin long time ago!
Also you giys forced AUS account holder to transfer the accounts to IB AUs from IB USA THUS LOOSING THE SIPC protection... WHY?
Also you stopped allowing Fx trading!
All in all it seems IB does not care about Australian clients
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Why do you think a number of global firms pulled out of Australia? The client money rules are restrictive for retail and margin licensing rules which were imposed a number of years ago make it difficult to offer margin to retail if not a bank. IB Australia is licensed in Australia and is required to support Australia residents hence the forced move. We are also restricted by regulations on what we can offer in regards to FX but take a look at IBFXCFDS which I am pretty sure are available for Australians.
https://www.interactivebrokers.com.au/en/index.php?f=41307&p=cfd
 
If your allowed to trade cfd's with Interactive , you'll see the possibility in the box when you enter the symbol into the watchlist . Also I can confirm their cfd's are pretty close to trading the underlying in terms of cost etc .
 
def said:
Why do you think a number of global firms pulled out of Australia? The client money rules are restrictive for retail and margin licensing rules which were imposed a number of years ago make it difficult to offer margin to retail if not a bank. IB Australia is licensed in Australia and is required to support Australia residents hence the forced move. We are also restricted by regulations on what we can offer in regards to FX but take a look at IBFXCFDS which I am pretty sure are available for Australians.
https://www.interactivebrokers.com.au/en/index.php?f=41307&p=cfd
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But these rules apply to all domestic brokers also for local market products .. and they still operate ! nothing new !
 
traderjo said:
But these rules apply to all domestic brokers also for local market products .. and they still operate ! nothing new !
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Banks offer margin and other brokers do it via banks. Contact some local non-bank brokers and see for yourself. My guess is you will be pushed towards their CFD products.
 
Re Margin loan it is for equity only...and that product is clearly available for decades ..For example COMSEC owned by CBA bank has equity brokerage and CFD but no body PUSHES a new client towards CFD!
so why such a giant like yourself do not offer simple Margin under ASIC jurisdiction? is a mystery.

Also one important question WHY did you push AUS client away from SIPC protection to Australia's AFG which is piss poor and not tested
 
traderjo said:
Re Margin loan it is for equity only...and that product is clearly available for decades ..For example COMSEC owned by CBA bank has equity brokerage and CFD but no body PUSHES a new client towards CFD!
so why such a giant like yourself do not offer simple Margin under ASIC jurisdiction? is a mystery.

Also one important question WHY did you push AUS client away from SIPC protection to Australia's AFG which is piss poor and not tested
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Please re-read what I wrote - BANKS offer margin. Comsec is owned by a bank. We are not a bank.

Nevertheless, we didn't necessarily push anyone away from SIPC or LLC on our own volition. As we had to move our brokerage to a local entity, Australian residents had to move to the local licensed entity per ASIC requirements. I'm not going to get into the nitty gritty here on regulations as there are many issues. One of the key ones is that US and Australian client money rules differ making it is impossible to be compliant in Australia w/o violating US rules and vice versa. I understand clients get some comfort having the additional protection of SIPC but you still fall under a local entity that is well capitalized, is under a parent with over $7B in shareholder capital and a firm with tight risk controls, a history of profitability and a conservative approach to finances. I'll also add with management and staff have significant skin in the game owning around 80% of the company, it should provide some comfort knowing we have an incentive to manage a tight ship.

Getting back to the topic, we offer a CFD product unlike most of the others with the back to back transactions (same market/spread as the listed markets) and full transparency (see the earlier links provided). Our leverage would be similar to what we offer on stocks (ie. if you are looking for 10:1 go elsewhere ) and is a viable alternative if you are seeking greater margin as a non-wholesale client of IB Australia.
 
I read what you wrote about Banks owning Brokerages etc but as customer that is not here or there , As a customer all I need is the service.
And how is that a reason? in US IB is not a bank either but provides Margin! at retail
we got attracted to IB with it's low rates and giant status but what we experience is indifference and slowly erosion of services // take it as a feedback instead of dismissing it!

- Also CFD no matter even if it is DMA as you mentioned is not substitute for real stock ownership where we can do things like Covered calls etc with CFD one can;t .
- Client money protection AFG is not as good as SIPC! and it only applies to Stock + becasue you are hybrid of stock/ Futures it is not even clear with ASIC rules we are covered or not? WIth US entity cash is swept back to SIPC and provides SIPC protection no matter if we are trading futures or stock
a position in IB CFD in AUS will not be treated as stock ownership!
And no I am not looking for crazy leverage just standard Australian or US Margin loan facility!
 
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