IB Margin Changes

Status
Not open for further replies.
Quote from newwurldmn:


I don't use IB because I don't like their liquidation policies and more importantly I didn't like the reviews I read about their customer service.
More...
The other option you have is to use IB, but never use margin with them. Then you have the best of both worlds..
 
Quote from jayre:

The other option you have is to use IB, but never use margin with them. Then you have the best of both worlds..
More...

No. Because I won't get good customer service. At my current broker, when I call the guy on the other side knows me personally.
 
From IB's agreement regarding order routing..

Affiliate Relationships: IB's affiliate Timber Hill LLC makes markets in stocks and acts as a specialist
or market maker on all U.S. option exchanges. Other IB affiliates worldwide, including Timber Hill
Europe, also act as market makers on global exchanges. As noted above, for non-directed IB
customer stock orders routed using IB’s Smart Routing system, if an IB affiliate is willing to provide
an execution at the best available posted price or better for that stock, IB may send the order to its
affiliate for an immediate automatic execution. "" Likewise, if an IB affiliate is a specialist or market
maker on an exchange that has posted the best bid or offer for an option contract for which an IB
customer has placed an order, and another exchange is also posting the same best bid or offer, IB
will break the tie by sending the order to the exchange where the IB affiliate is acting as specialist or
market maker.""
 
10. If margin requirements are increased, by IB or otherwise, and there is insufficient equity in Customer's
account (s) to meet such increased margin requirements, then IB without notice to Customer, may
liquidate Customer's positions in any of Customer's IB accounts, or otherwise apply assets in any o f
Customer’s IB accounts, and Customer agrees that IB will not have any liability to Customer for any
losses or damages sustained by Customer in connection wi th such liquidations or application o f
Customer’s property, or i f the IB System experiences a delay in effecting, or does not effect, such
liquidations, even i f Customer subsequently r e -establishes its position at a less favorable price.
11. IB reserves the right, at any time and without prior notice to Customer, to impose higher margin
requirements than those imposed by applicable law, and IB's related margin terms, policies and
procedures are subject to change, upon notice to Customer. Customer agrees to moni tor e - mail
messages and satisfy any margin call issued by IB by
 
Quote from newwurldmn:

No. Because I won't get good customer service. At my current broker, when I call the guy on the other side knows me personally.
More...
I think the liquidation issues and the conflict of interest that Timber Hill might be profiting of these liquidations is 10 times more important then the costumer service.
 
Quote from jayre:

The other option you have is to use IB, but never use margin with them. Then you have the best of both worlds..
More...
Indeed, I do this with one of my accounts. However, if you want to trade options in a non-IRA account, it has to be a margin account, even if you never use more than the account's available cash.
 
Quote from jayre:

I think the liquidation issues and the conflict of interest that Timber Hill might be profiting of these liquidations is 10 times more important then the costumer service.
More...

I don't think so. A customer service rep would answer the questions you need. When I have a question, I get to speak directly with the head or a senior guy on that desk.
 
Quote from loufah:

Indeed, I do this with one of my accounts. However, if you want to trade options in a non-IRA account, it has to be a margin account, even if you never use more than the account's available cash.
More...
Even if its a margin account, as long as you trade only long options & don't use the margin you are pretty safe.
 
Status
Not open for further replies.
Back
Top