IB overnight initial for 1 YM contract $9153.54

[maxinger]

It survived because IMO it is really the best broker for retail, period.

They are way ahead of the curve compared to the competition. Some brokers are catching up, but so far IB still leads.

Superior technology platform. Even had 2 factor authentication back in the days when other brokers just had a simple web login and trading tool. They have desktop and mobile trading apps when other brokers are only starting to get into that game.

They have superior market access. Global access in fact. You can trade stock, options, futures, FOP, etc - of products around major world markets. This is seriously game changing. No other retail broker as of yet has this. Where else can you hold stocks, stock options, CME futures all under one roof? And then go trade the Hang Seng/Nikkei at night on that same account? Maybe you're bullish Lloyd's Bank in the UK, so you can go buy LLOY direct on the LSE instead of LYG on the NYSE as an ADR. They're like a prime broker for retail.

Superior commissions pricing (although they are getting expensive quick) for trades, particularly options commissions. Great margin loan rates.

Everything about IB is market leading. I'm not aware of any other competing broker even close to what IB offers.

ha. I can see you like IB platform very much.

When I first used it decades ago, it was instant hatred.

 

[Rickshaw Man]

Now it's $10,370.95 for 1 YM futures contract. This will be 15k with a little more volatility.

 

[Rickshaw Man]

The notional value of one YM contract is currently a tad over $120,000. How could anyone possibly be bitching that they need to put up less than 8% of the notional value ($9,000) to hold that position? Isn't more than 12x leverage enough? I'd say if that isn't enough leverage for you, you are under-capitalized.

Just comparing there margins to others. Up another 10% this week......No other US broker has raised there margins, not even the damm exchange....I have never seen IB raise there margin so fast. Something is just not right.

 

[tiddlywinks]

No other US broker has raised there margins, not even the damm exchange

CME increased performance bonds twice last week...

Feb 6 eff. Feb 7... http://www.cmegroup.com/notices/clearing/2018/02/Chadv18-055.pdf
Feb 8 eff. Feb 9... http://www.cmegroup.com/notices/clearing/2018/02/Chadv18-058.pdf

 

[southall]

No other US broker has raised there margins, not even the damm exchange....I have never seen IB raise there margin so fast. Something is just not right.

Probably because they now have around $100 billion in customer equity.
When i opened my account back in 2004 they had under $10 billion.

 

[Laissez Faire]

I would love to use Interactive Brokers since they're pretty much the only broker who supports Ninjatrader.

Sadly, their day trading margins are a tad too high for me. When the ES was a few thousand points lower, I think their day trading margins were around $3-3500 which were fine with me.

 

[southall]

Sadly, their day trading margins are a tad too high for me. When the ES was a few thousand points lower, I think their day trading margins were around $3-3500 which were fine with me.

The VIX is back to almost historically average levels,18, but IB still have day trading margin turned off off. If volatility continues to contract but IB maintains almost $10,000 dollar margin just for day trading 1 lot, it is going to be more and more of an impediment to my style of day trading.

 

[Laissez Faire]

The VIX is back to almost historically average levels,18, but IB still have day trading margin turned off off. If volatility continues to contract but IB maintains almost $10,000 dollar margin just for day trading 1 lot, it is going to be more and more of an impediment to my style of day trading.

I think it's too much for most people. Prior to the recent events, I think their day trading margins was already around $6000 or so?

I certainly don't want or need $500 margins, but IB's margins are way too high for me.

However, in the end, it's IB's choice and I respect that. It's just a pity that they're the only broker offering Ninjatrader.

 

[southall]

I think it's too much for most people. Prior to the recent events, I think their day trading margins was already around $6000 or so?

I certainly don't want or need $500 margins, but IB's margins are way too high for me.

However, in the end, it's IB's choice and I respect that. It's just a pity that they're the only broker offering Ninjatrader.

At the start of Feb 2018, IB day trading margin were around $3,500 for ES and YM and as they offered 50% reduced intra day margin for day traders.
When the VIX jumps over 30, IB turn off day trading margin. However they are normally quite slow to turn it back on. Which is my main problem with their approach.

 

[Laissez Faire]

At the start of Feb 2018, IB day trading margin were around $3,500 for ES and YM and as they offered 50% reduced intra day margin for day traders.
When the VIX jumps over 30, IB turn off day trading margin. However they are normally quite slow to turn it back on. Which is my main problem with their approach.

I understand. I wasn't aware their DT margins were as low as $3500. I could easily deal with that.

Maybe I was too hasty when I last checked their margins (end of 2017), but I seemed to recall it was closer to $5000 then...

Unless you're dependent on some type of software (like I am with Ninjatrader), I'm sure you'll find some replacement broker.