Quote from cowpok1027:
I read with great interest all my fellow traders comments RE: IB.
MY REQUEST: ANY SUGGESTIONS FOR ALTERNATIVE On-line Brokers that allow just about any type trade?? NOTE: I do a lot of naked option - complex option strategy - and hedging transactions.
MY COMMENTS: (some background info 1st -- I've been an investor/trader for about 40 years & I know the workings of the market-makers from spending time on a trading floor. I trade/invest thru a # of firms - I know I should consolidate them.
My 2 primary on-line brokers are IB (opened 1st & MB Trading).
The difference is astounding !! While MB Trading doesn't allow most of the options strategies I use - just buy then sell Call/Put or covered call - they are hands down more customer oriented & helpful. that said you can find my IB experiences/comments below.)
#1 While no one should judge any firm solely by the experiences noted in these posts, I've used IB for a few years with a number of horror stories about them I could tell & continue only because they allow all the trading strategies I use (& feel I need).
#2 MY #1 complaint is their arrogance & LACK OF INTEGRITY. I say this because mistakes can be made but I have NEVER gotten any satisfaction from IB even after they agreed to do so (my recent experience says they will no longer even admit an obvious error). Here are 2 examples - A) The Friday before President's day in Feb. 2003 I was closing out both sides of a spread option position on 5 calls when I noticed I was now short the lower strike (previously long side). I called, & after the usual long phone delay, I spoke to a trade desk person who researched it & felt they (IB) had erred in execution. I called again on Tuesday (Monday was the holiday) & was told I had entered 10 rather than 5 options to be sold so I caused the problem despite the fact that they could not explain why my order was executed as 5 options on 2 different exchanges even tho both exchanges had the same BID/ASK with sufficient BID Volume to executed an order of 10 options. The next day I was told to e-mail my complaint which I did on that day only to be told I had waited to long ! B) I'm selling options (limit order) when I notice that the BID rises to above my limit price so I quick enter a 2nd (market) order ( I rarely use market orders by the way). I'm executed on my market order at my limit price which is now below the market while my limit order sits unfilled. I call & get agreement that it was a pricing error (they claimed the exchange agreed to give the $$ back). The $$ never showed up in my account !
#2 As of year-end (2004) IB Monthly Statement for Options on stocks which stop trading due to takeover (the option is still valid but is assigned a new trading symbol) DO NOT show any symbol (just a strike & expiration. Note: UNCLE SAM isn't happy about this one.
#3 NEVER let your SMA go negative unless you're prepared to cover it pre-3:50pm - IB automatically executes trades @ 3:50pm to offset this even tho SEC regs T says you have 3 days to make good with cash. NOTE: IB won't help you figure this out before or after it occurs (anyone have a program to do this?). Also, if you send IB $$ (wired or check) they hold it at least 1 day before you can use it.
#4 TWS is (my opinion) a lousy trading platform. A) there is auto fill on price & quantity @ market which you must change with no protection on input error. Also, IB will charge you for any cancelled option order. I've even cancelled an extra order line & had it cancel my order line to wit I had to re-enter the order & pay them for the cancel. Also, I have a lot of protection against technical problems but if TWS is down (IB problem) how in the heck do you use your IB account ($$ or positions) to trade?
FINALLY, I would be most interested in starting &/or joining a IB USER's GROUP (maybe together we can get their attention on issues).
