Author Topic: I am done with Interactive Brokers!  (Read 1295 times)

muscleman

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I am done with Interactive Brokers!
« on: December 07, 2017, 07:01:19 AM »
This Jan I bought senior bonds of Mongolian Mining corp. The company was in bankruptcy so they wanted bond holder to vote for their restructuring deal, which means filling out a few pages with info like broker's EuroClear account number or DTC account number. I asked IB for that info. It took them a whole week to respond to me: "The deadline is still two days from today, so why are you in such a rush to get the info today?" WTF!  :o

Then in May i found that  I needed to fill some additional paper work to get the new securities, so I contacted IB. Again I waited for a whole week to get their initial response, and every response took at least a week. After a month, they filled the paper work.

Then I finally got the bonds in August, but IB is such a lousy broker that they spent months and told me that they could not find any bids for the bonds. I got scared that I may not be able to sell at all and got stuck with these bonds.

I eventually found out that TD Ameritrade is able to sell these bonds, so I requested a transfer, which took months to happen. The bonds finally hit my account yesterday. I called TD, and in just one hour, they were sold. Great relief!

You don't know how much pain I suffered.


flesh

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Re: I am done with Interactive Brokers!
« Reply #1 on: December 07, 2017, 09:03:22 AM »
This Jan I bought senior bonds of Mongolian Mining corp. The company was in bankruptcy so they wanted bond holder to vote for their restructuring deal, which means filling out a few pages with info like broker's EuroClear account number or DTC account number. I asked IB for that info. It took them a whole week to respond to me: "The deadline is still two days from today, so why are you in such a rush to get the info today?" WTF!  :o

Then in May i found that  I needed to fill some additional paper work to get the new securities, so I contacted IB. Again I waited for a whole week to get their initial response, and every response took at least a week. After a month, they filled the paper work.

Then I finally got the bonds in August, but IB is such a lousy broker that they spent months and told me that they could not find any bids for the bonds. I got scared that I may not be able to sell at all and got stuck with these bonds.

I eventually found out that TD Ameritrade is able to sell these bonds, so I requested a transfer, which took months to happen. The bonds finally hit my account yesterday. I called TD, and in just one hour, they were sold. Great relief!

You don't know how much pain I suffered.

With the recent nc spin of hbb..... IB converted my b shares of hbb within a few weeks allowing me to sell at 39/share... meanwhile ally.com (I know I should change) still hasn't done it and it's drifted to 27/share.

Just a anecdotal counterpoint. I wonder if other's with different brokers participating in the spin had other experiences?

Hielko

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Re: I am done with Interactive Brokers!
« Reply #2 on: December 07, 2017, 09:06:03 AM »
If you rate your broker by how they handle Mongolian bonds perhaps you need to rethink what you should expect...

muscleman

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Re: I am done with Interactive Brokers!
« Reply #3 on: December 09, 2017, 06:48:24 AM »
This Jan I bought senior bonds of Mongolian Mining corp. The company was in bankruptcy so they wanted bond holder to vote for their restructuring deal, which means filling out a few pages with info like broker's EuroClear account number or DTC account number. I asked IB for that info. It took them a whole week to respond to me: "The deadline is still two days from today, so why are you in such a rush to get the info today?" WTF!  :o

Then in May i found that  I needed to fill some additional paper work to get the new securities, so I contacted IB. Again I waited for a whole week to get their initial response, and every response took at least a week. After a month, they filled the paper work.

Then I finally got the bonds in August, but IB is such a lousy broker that they spent months and told me that they could not find any bids for the bonds. I got scared that I may not be able to sell at all and got stuck with these bonds.

I eventually found out that TD Ameritrade is able to sell these bonds, so I requested a transfer, which took months to happen. The bonds finally hit my account yesterday. I called TD, and in just one hour, they were sold. Great relief!

You don't know how much pain I suffered.

With the recent nc spin of hbb..... IB converted my b shares of hbb within a few weeks allowing me to sell at 39/share... meanwhile ally.com (I know I should change) still hasn't done it and it's drifted to 27/share.

Just a anecdotal counterpoint. I wonder if other's with different brokers participating in the spin had other experiences?

Interesting. I heard of similar things like that before when SHLD spin off various assets.
Does anyone have experience of TD's spin off handling? I assume no one is using TD here because the commission is too high?

muscleman

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Re: I am done with Interactive Brokers!
« Reply #4 on: December 09, 2017, 06:57:44 AM »
If you rate your broker by how they handle Mongolian bonds perhaps you need to rethink what you should expect...

Not just how they handle Mongolian Bonds, but their customer service in general.

I also found this interesting, but maybe it is written by someone who works for the brokers that work with HTFs. I've seen articles written in the opposite way and saying that brokers who place orders directly into the exchanges are the best.
https://www.barrons.com/articles/fidelity-tops-in-price-improvement-for-retail-investors-1436589662

"But the big lesson from the statistics, Weisberger says, is that retail trades executed through the big wholesale market makers get the best pricing in the stock market. That’s an inconvenient fact for the market makers’ stock-exchange rivals, and brokers that patronize them, such as Interactive Brokers Group (IBKR)."





KCLarkin

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Re: I am done with Interactive Brokers!
« Reply #5 on: December 09, 2017, 10:44:33 AM »
That quote isn’t really supported by the article.

I thought the quote from fidelity was more interesting:
“Brokers that extract the best price improvement for their customers necessarily forgo some hefty payments that other brokers get for sending their order flows to market makers. “The market makers are not both going to pay you a lot for order flow and then turn around and provide your customers with a high level of price improvement,” says Gregg Murphy, Fidelity Brokerage’s senior vice president for trading.”

muscleman

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Re: I am done with Interactive Brokers!
« Reply #6 on: December 09, 2017, 08:16:34 PM »
That quote isn’t really supported by the article.

I thought the quote from fidelity was more interesting:
“Brokers that extract the best price improvement for their customers necessarily forgo some hefty payments that other brokers get for sending their order flows to market makers. “The market makers are not both going to pay you a lot for order flow and then turn around and provide your customers with a high level of price improvement,” says Gregg Murphy, Fidelity Brokerage’s senior vice president for trading.”

Yep. This is right. I am using Fidelity and I am happy with it so far.
Most brokers take rebates from HFT firms, which make me concerned. On the other hand I do felt like over the past few years, my orders in IB almost always got filled at bid/ask instead of somewhere in the middle with price improvements, while my order at Fidelity seems to do better.
I started using TD now and I'll keep an eye on it. Worst case is that I transfer the account to Fidelity, but I'll never use IB again. I focus mostly on micro caps, and IB's really expensive for buying those low price shares.