Separate accounts for separate products.. same way MBT operates, in other words, a significant hassle.
Why is it that only IB offers a unified account for all products? What makes it so difficult for MBT and TDA to emulate that structure?
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Will TD ameritrade offer futures, forex post ThinkorSwim acquisition?
- Thread starter IShopAtPublix
- Start date
Why is it that only IB offers a unified account for all products? What makes it so difficult for MBT and TDA to emulate that structure?
I agree it is a hassle although at least with MBT you have one account for equity and futures, its only FX that is separate...is it correct that we will have to maintain separate equity and futures accounts with TDA each with their own cash/margin balances? That would majorly suck.Quote from Trader KGB:
Separate accounts for separate products.. same way MBT operates, in other words, a significant hassle.
Why is it that only IB offers a unified account for all products? What makes it so difficult for MBT and TDA to emulate that structure?
Quote from jd1:
Teh reason for this is that ThinkorSwim is an IB of Penson GHCO and TDA does not yet clear Futures or Forex like IB. Once TDA does become a FCM they will be able to do business in the same fashion as IB
Any thoughts on how long it will be until TDA will be doing their own futures clearing?
The answer to your question is each product (stock, option, mutual fund, commodities, forex, etc..) has a different set of accounting standards defined by government regulatory agencies. For example commodities use a mark-to-market accounting that is required by the CFTC that is not at all like the stock accounting rules defined by the SEC. Piled on top of this are rules for executing trades against these products in specific product exchanges.Quote from Trader KGB:
Separate accounts for separate products.. same way MBT operates, in other words, a significant hassle.
Why is it that only IB offers a unified account for all products? What makes it so difficult for MBT and TDA to emulate that structure?
In an online account each type of product your broker offers you has its own sub-brokerage rules. The complexity differences of each product drives how the brokerage online user consolidate account interface was developed. How many products they can supply to your consolidated online account revolves around how it is programmed.
I believe IB was the first to build a complete consolidated account with a sub-brokerage interface that included commodities. A sub-brokerage being one of many brokerage accounts that consolidated into one higher consolidated account (this is why many brokerage statements says in big letters ⦠Consolidated Statement of â¦) . Todayâs typical broker can only handle minimal sub-brokerage interfaces such as cash, money markets, stocks, options and mutual funds. Adding commodities and forex as sub-brokerages are a major addition to these brokerâs web sites.
IB is a well thought out consolidated account brokerage interface. It works well because behind the scenes IB is a multiple sub-brokerage account firm that has consolidated all related sub-brokerages it in to one main account online. What IB did was design their online interface to be able to switch and handle different and diverse sub- brokerage/products which is no mean programming feat. What you are actually seeing in IB is a set of screens that switch you from one type of sub-brokerage account to another. It remains to be seen if TD-Ameritrade can perform the same feat as IB.
Quote from Rabbitone:
IB is a well thought out consolidated account brokerage interface. It works well because behind the scenes IB is a multiple sub-brokerage account firm that has consolidated all related sub-brokerages it in to one main account online. What IB did was design their online interface to be able to switch and handle different and diverse sub- brokerage/products which is no mean programming feat.
That's all true, and my hat's off to them, but at the end of the day the "consolidation" is purely a paperwork simplification. The _economic_ benefit would be if portfolio margin rules combined futures and securities.
I asked them in an email this week and here is part of the reply: "We will not be offering futures trading until sometime mid-late next year. While we have purchased Thinkorswim we continue to operate as completely separate companies. You would need to apply for an account with Thinkorswim and then transfer your account to them. "
Quote from blue3d:
I asked them in an email this week and here is part of the reply: "We will not be offering futures trading until sometime mid-late next year. While we have purchased Thinkorswim we continue to operate as completely separate companies. You would need to apply for an account with Thinkorswim and then transfer your account to them. "
Well, that all sounds like we will not see futures trading at TDAmeritrade until TDA can clear the futures trades. The "mid-late next year" time-frame is likely to turn into years or never.
Quote from Catoosa:
Well, that all sounds like we will not see futures trading at TDAmeritrade until TDA can clear the futures trades. The "mid-late next year" time-frame is likely to turn into years or never.
Why is it a big deal to open a futs account at ToS, as they suggest? Am I missing something?