Alternative pls? I want to trade now, not debate. Thanks
IB, Robinhood, and Schwab...
- Thread starter Cabin111
- Start date
This question "what is best" cannot be answered in any meaningful manner.
A cursory glance of the issues easily lays out the fact that this is a multi-variable optimization problem with multiple local optima. So, it depends on what you want:
1. Well-funded operation with long history, big cap, plenty of liquid cash and low counterparty risk (in this regard)
2. Broker, broker + bank license or broker + bank license + clearinghouse all in one?
3. API/features
4. Efficiency, uptime/SLA, historical ability to execute, delays
5. Pricing structure
6. Markets and tradable assets availble
.... etc.
The RH/WSB fiasco outlined the probles with at least 1 & 2.
RH does at least some of it's own clearing, but it gave way too easily margin to idiots and clearly was not independent. The order came from above and they folded. Cross it off the list, or anybody with similar business model, dependencies and lack of own liquid capital and risk mangement. I doubt anybody here was using it anyway.
IBKR was a more interesting case. It doesn't do clearing, but it provides much better account protection, is fairly well funded and does much better risk management. But they also folded, prevented even buying of stocks. This is completely unacceptable. Off the list (and my current broker, btw).
But then what does one switch over to? That depends on the requirements. All brokers have their issues and the above list is just a start.
I've been looking at non-US brokers (Degiro, Plus500, etc) because much of the crap comes from US administration/rules, but the alternatives are just horrible in all regards. I wouldn't trust any of them with more than 10K of my own cash. They are just betting casinos with horrible software/APIs/support/risk management/market availability.
So what is one left with?
The older, bigger, more expensive, clunkier companies.
There's no free lunch here.
If anybody finds a good non-US international alternative for IBKR, please let us all know.
A cursory glance of the issues easily lays out the fact that this is a multi-variable optimization problem with multiple local optima. So, it depends on what you want:
1. Well-funded operation with long history, big cap, plenty of liquid cash and low counterparty risk (in this regard)
2. Broker, broker + bank license or broker + bank license + clearinghouse all in one?
3. API/features
4. Efficiency, uptime/SLA, historical ability to execute, delays
5. Pricing structure
6. Markets and tradable assets availble
.... etc.
The RH/WSB fiasco outlined the probles with at least 1 & 2.
RH does at least some of it's own clearing, but it gave way too easily margin to idiots and clearly was not independent. The order came from above and they folded. Cross it off the list, or anybody with similar business model, dependencies and lack of own liquid capital and risk mangement. I doubt anybody here was using it anyway.
IBKR was a more interesting case. It doesn't do clearing, but it provides much better account protection, is fairly well funded and does much better risk management. But they also folded, prevented even buying of stocks. This is completely unacceptable. Off the list (and my current broker, btw).
But then what does one switch over to? That depends on the requirements. All brokers have their issues and the above list is just a start.
I've been looking at non-US brokers (Degiro, Plus500, etc) because much of the crap comes from US administration/rules, but the alternatives are just horrible in all regards. I wouldn't trust any of them with more than 10K of my own cash. They are just betting casinos with horrible software/APIs/support/risk management/market availability.
So what is one left with?
The older, bigger, more expensive, clunkier companies.
There's no free lunch here.
If anybody finds a good non-US international alternative for IBKR, please let us all know.
Tastyworks was acquired by the CFD/betting craphouse IG Group:
https://en.wikipedia.org/wiki/IG_Group
I wouldn't give them penny of my money. They will totally destroy Tastyworks in short time, mark my words.
I know that my account is most likely larger than the average here (8 figures) and am seriously now considering paying up and moving to GS or MS.
I wonder if anyone here has any experience with prime brokers? Or are there other forums you could recommend more relevant to larger accounts?
I wonder if anyone here has any experience with prime brokers? Or are there other forums you could recommend more relevant to larger accounts?
TradeZero_Dan
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Segregated, ringfenced and bankruptcy-remote client money accounts? Who is the custodian?
I am the custodian, rest assured.
Lol. Tony Faloney!
Was with MS for years...They may push junk. Since they are not a fiduciary, you are on your own for trust. Much higher fees, even self directed programs. There is hand holding and someone (broker of your choice that you trust) to bounce ideas off of. Even if your broker can't answer your questions, someone in the office (post Covid...If you're in the office) can answer the questions. My personal broker went off on his own to form a independent company. He does management (minimum of $500,000.) and charges like about 1% for a $1,000,000. account. He then uses Schwab for the trades. But you have his ear and over time he/she knows what you want and how you wish to trade. The big brokers are ideal for someone in their 70s/80s who has a lot of money and no direction. Weigh both sides. Sit down for a visit with a few at any of the big boys. They will push you to the new brokers (untested). I would want to go with someone with at least 5 years history in the market. The more you bring in, the more you have a companies attention...
I am more interested in hedge fund set up (big boy agreement), where a prime broker provides execution, clearing, market access and custody and the most competitive price. I think some single family offices do that as well...
No hand holding required whatsoever.