IB traders
- Thread starter Jackthepipper
- Start date
I kind of like that IB does not barter on commissions. With TD/TOS I see their fees, I expect it to be that. Then I heard they can barter and knock you off discounts. All of which is unpublished. Seems a bit 'grimy' and 'cheapens' them in *my* view. Why not be straight up with the fees rather than having to haggle like a used car salesman?
Note: If they want to offer discounts on volume, that's fine: Publish it. They can even go so far as to say: Institutional Investors with Volumes > 100M/day are eligible for further discounts, please e-mail us for information.
Anywho, for IB, what I do wish were two things:
1) A 'What-If' for their commissions: What If I was with flat rate or not, what would the fee have been on that previous transaction.
2) Cost breakdown on fees and commission (The pop-up says commissions will be between 5$ and 100$. Thank you.... Could you possibly break it down a bit so maybe I can find out why it has such a huge spread... maybe I'm doing something I don't need to do and it would make sure I had commission towards 5$ rather than 100$)
Btw:
If I have multiple orders that are various option spreads and option + stk spreads, and there were some overlaps, does IB optimize the order if I submit it at once? I.e.:
Order 1: BUY+WRITE AAPL + AAPL110
Order 2: Write AAPL110
Order 3: BUY AAPL
The three would obviously be different orders (let's pretend it made sense I did this trade, I know, it's a silly trade... for example purposes only). Would IB convert it to:
BUY 2xAAPL, Write 2xAAPL110 (and thus submit 2 orders)
Or would it send it as 4?
Thank you.
Note: If they want to offer discounts on volume, that's fine: Publish it. They can even go so far as to say: Institutional Investors with Volumes > 100M/day are eligible for further discounts, please e-mail us for information.
Anywho, for IB, what I do wish were two things:
1) A 'What-If' for their commissions: What If I was with flat rate or not, what would the fee have been on that previous transaction.
2) Cost breakdown on fees and commission (The pop-up says commissions will be between 5$ and 100$. Thank you.... Could you possibly break it down a bit so maybe I can find out why it has such a huge spread... maybe I'm doing something I don't need to do and it would make sure I had commission towards 5$ rather than 100$)
Btw:
If I have multiple orders that are various option spreads and option + stk spreads, and there were some overlaps, does IB optimize the order if I submit it at once? I.e.:
Order 1: BUY+WRITE AAPL + AAPL110
Order 2: Write AAPL110
Order 3: BUY AAPL
The three would obviously be different orders (let's pretend it made sense I did this trade, I know, it's a silly trade... for example purposes only). Would IB convert it to:
BUY 2xAAPL, Write 2xAAPL110 (and thus submit 2 orders)
Or would it send it as 4?
Thank you.
I agree that bartering commission and fees is not something I like at all. And I generally stay away from those brokers and banks that engage in such tactics. However, there should be commission schedules as function of volume for good reason. The more business someone brings to the table the more he/she should be rewarded for it. In that IB's model is definitely unconventional in the fx space. After all they have schedules in many other asset classes and even on the roll side as function of volume/size.
You might want to speak with ABN, if you haven't already.
Here is a screenshot of my activity so far today. I've heard all the criticisms of overtrading but with my career background in spot trading/market making, I have always derived a benefit from being involved in the price action. Trading around a theme or view in an attempt to improve a position average gives me a better feel of the market. I am in no way advocating this type of trading, but it works for me. I think it keeps me sharp and focused, but it certainly requires pretty fierce screen stamina.
i wish i had a bloomberg man!!! so cool!!
Do I understand you correctly, as price moves against you, you average down?
I'm not being critical, when I traded stocks I never did that, nor do I bother with futures, but with FX I've found that taking a partial position (in case the market just runs away) and adding to it at identified levels as price moves against me has been pretty good. Key point here being at 100% fill, my risk is at the predetermined level. I often don't get 100% fill, so I need to fine tune that.
In essence, is that your approach?
I will average down on occasion. But it's not my preferred strategy. Actually, an ex-boss of mine and one of the more successful traders I know used to preach "never add to a loser." I think there is more than one way to skin a cat -- I believe Gartman includes in his own personal rules of trading that "all rules are on occasion meant to be broken" (or something like that). Although he's become more of a punchline lately on CNBC (his last couple of crude calls have been epic fails), he is a very experienced guy and I actually agree on that accord. In my opinion, one of the more important tactics in day trading is one's ability to maintain flexibility -- recognizing the type of prevailing market and structuring your strategy to suit. But in my experience, the market is ALWAYS changing and you have to continually adapt your style. The only aspect of trading which must be robotically respected to ensure long term survival is RISK MANAGEMENT.
Hi Conduit, I'm not sure if you have seen yet but IB just enacted some new regulatory garbage requiring anyone trading leveraged FX to be an "eligible contract participant." Loosely defined as an entity/individual with net assets in excess of $10 million. Any trader not qualified as an ECP will no longer be able to trade leveraged FX on IB after September 1st! You seem rather knowledgeable with regard to retail currency trading. As I have mentioned in other posts I have been at banks and prop firms most of my career and really only started on the retail side over a year ago. IB is the only platform I have used and I was extremely happy with it. If forced to migrate to a new broker, do you have any suggestions? I truly value your opinion. At this point it seems like FXCM is the best option as I do not want to go the prime of prime route. Any advice will be greatly appreciated. Thanks
I think your really going to struggle to find a spot retail broker being a US citizen and your only options are to offshore with either fxcm, oanda or forex.com. Be aware these guys may be counter party to your side and I've had issues myself with money going missing so I would be extremely careful in putting all your funds in the account just use the high leverage with the smaller trading account to protect yourself. Have you thought about futures?