Interactive Brokers for day-trading Futures?

schweiz said:
If this $500 is so important I would advice you to work and improve your trading plan. That would bring much more then 0.25 difference on a trade.
How can $500 a year be important for a real trader? :confused:
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Again, I started thread because was interested in IB as a platform for futures, and was pointing out that their costs were not higher when all things considered. So was wondering what else to be aware of with them (e.g. auto liquidation of positions came up as one reason). $500 savings per year is NOT the reason I would go to them, but saying costs are not a reason to avoid them either
 
TDMA said:
You can, but they have a habit of making up the rules as they go along. In volatility they will be one of the first to increase and have one of the highest margin requirements of any broker, being one of the last to reduce.
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IB is definitely a margin Nazi, but if you're carrying a large cash balance, I can't think of a safer direct access broker. Their API is also very capable, if you know what you're doing.
 
AAAintheBeltway said:
The main reason to use IB, apart from the breadth of products they offer, is that they are the least likely FCM to blow up in a crisis. They respect risk. That gets reflected in margin, liquidation policies etc. It always amazes me that newbies consider that a negative.
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Not an IB client, now or ever. But saying IB is the least likely FCM to blow up is based in your opinion only. Refco, MF, PFG, Knight, Bear, Lehman, and others were very well capitalized. Some with credible management others not so much. Im just pointing out the obvious, the likelihood of blow up is your opinion only. If you are happy with the way IB conducts business as it relates to your account with them, Enjoy!! There is no reason to chide others with differing opinions, experience, and/or knowledge.
 
tiddlywinks said:
Not an IB client, now or ever. But saying IB is the least likely FCM to blow up is based in your opinion only. Refco, MF, PFG, Knight, Bear, Lehman, and others were very well capitalized. Some with credible management others not so much. Im just pointing out the obvious, the likelihood of blow up is your opinion only. If you are happy with the way IB conducts business as it relates to your account with them, Enjoy!! There is no reason to chide others with differing opinions, experience, and/or knowledge.
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Accurate, I have had accounts with IB and did not like their business practice, but as with the weather, everyone has an opinion. My view is look outside and make a decision based on experience, you can also take the opinion that if they have to increase margins above average they are running everything too close to the limits.

There is one guarantee I can make, if there's a discrepancy it's never for your benefit, I can invert those but I'm a little more experience than most. I actually go and look, for example taking the 4hr drive to Monaco to see what the state of play is, it's not positive. The entire system is designed that if there is a capital draining event, the show goes on, what they don't tell you is that the public pick up the bill by spreading the cost, making sure those who pick up the bill don't have enough voice to cause that same show to pause.

Once you understand this fact the definition of "well capitalised" becomes arbitrary. And if you have the ability to stop the show, which I can and am actively pursuing, heaven help you because everyone, including those those are supposed to serve and protect, will throw every obstacle imaginable in the way.

"When one's young, it seems very easy to distinguish between right and wrong. But, as one gets older, it becomes more difficult. The villains and the heroes get all mixed up."
 
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truetype said:
That isn't true. Do your homework!
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What-ev-er.

Monetary deficiencies or fallacies surfaced AFTER the fact. And in those specific instances where such deficiencies or fallacies were the cause, the firms were believed to be in compliance by the public, the street, and regulators... until.... BANG!
 
tiddlywinks said:
Refco, MF, PFG, Knight, Bear, Lehman, and others were very well capitalized.
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Those all had some kind of asset management or prop desk on their books... that backfired.

As far as I know, IB doesn't have a prop desk or does active asset management. They've sold TimberHill, which arguably would have been the biggest risk atribution to IB.
 
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