IB in Australia

T

traderjo

Ib had it's troubles with ASIC the Australian regulator and as a results Australian clients got rough end of the stick
No Margin
No FX trading
NO Single Stock Futures
Now it seems something else has happened like in HK All Australian clients will have to transfer accounts with IB AUS
Meaning losing SIPC protection!
Yes there is an Australian equivalent called AFG but it is not as good as SIPC

Why IB does not get it's act together with ASIC and offer same level of service and protection as to those in USA?
Either offer that or get out
 
If the money is held under a Futures broker (wedbush) how is it SIPC protected?
Or wedbush is a hybrid like IB ? and sweeps cash to SIPC?

Reg T for non US residents?
SSF?
Shorting of stocks?
Ability to trade more than US? ASX/ India/ HK etc
Instant FX transfer

PM rates please (any close to IB?)
by the way what I could not understand is Options Express could get it's act together and offer Australians Reg T etc from day one but IB never did or they did but did not comply with ASIC and were warned
Some xxxx going on sounds like they dont give a xxx about Australian clients
 
traderjo said:
If the money is held under a Futures broker (wedbush) how is it SIPC protected?
More...

"SIPC on Equity/option accounts"
Futures are in a seg account as required by NFA/CFTC Rules.
Not a hybrid, no sweep account. You need two accounts to trade both. Both must be applied for and funded independently,

When you say "PM rates", are you referring to leverage or debt interest.
 
sorry I meant your brokerage on Equity/ Option/ Futures and also leverage debit interest and short interest charges also other point about Single Stock Futures
also if it is two accounts then unlike IB it is difficult to move money around! and no SIPC sweep!
 
traderjo said:
Ib had it's troubles with ASIC the Australian regulator and as a results Australian clients got rough end of the stick
No Margin
No FX trading
NO Single Stock Futures
Now it seems something else has happened like in HK All Australian clients will have to transfer accounts with IB AUS
Meaning losing SIPC protection!
Yes there is an Australian equivalent called AFG but it is not as good as SIPC

Why IB does not get it's act together with ASIC and offer same level of service and protection as to those in USA?
Either offer that or get out
More...

traderjo I wasn't aware that IB were setting up again in Australia. Thanks for the note. I don't currently use IB but was considering them.

From a quick web search it looks like they have resolved previous differences with the local regulators and have now got a AFSL (Australian Financial Services License) with all accounts to be transferred over to IB (Australia) from IB LLC by 30th Nov. To comply with an AFSL they'll have to maintain all client funds in a segregated trust account , i.e. this preserves funds in the case of company failure and makes them subject to other local regulation. I'm not familiar with SIPC protection but I would have thought the Australian regulation is just as likely to be stronger and more secure than an insurance scheme.

Any US trades will be done by IB Aust as a client of IB LLC, so IB LCC would presumably still have your SIPC protection as IB Aust's broker for international trading.

I've also seen recent television ads for IB for the first time so looks like they are gearing up to offer decent service to clients here (Sydney).
 
traderjo said:
sorry I meant your brokerage on Equity/ Option/ Futures and also leverage debit interest and short interest charges also other point about Single Stock Futures
also if it is two accounts then unlike IB it is difficult to move money around! and no SIPC sweep!
More...

I'm very comfortable with a fair amount of my own and family money in a Wedbush Futures Segregated account without SIPC. I don't give it a second thought. But I also ran a business as a BD for 25 years with zero SIPC protection and paid SIPC dues!
 
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