Author Topic: IBKR - Interactive Brokers  (Read 119985 times)

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #410 on: December 15, 2017, 10:44:30 AM »
Quote
Interactive Brokers said that it handled just over half of the bitcoin futures trading volume the day of their launch. Updated figures were not yet available as of Friday morning.

https://www.cnbc.com/2017/12/15/the-day-bitcoin-futures-dropped-was-when-many-traders-could-begin-betting-against-it.html


whiterose

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Re: IBKR - Interactive Brokers
« Reply #411 on: January 14, 2018, 02:19:39 AM »
Does anyone have an opinion on (or defense of) the current valuation?
Many thanks in advance!

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #412 on: January 14, 2018, 03:10:12 AM »
They are rolling out mastercards without forex fee, 0.50 cent atm withdrawal fees globally to Canada and Europe this year and available already for the US. Given their low cost structure, borrowing costs, you can see this as a kind of bank. I don't see why in the future brokers and banks can't be one and the same. Now in the past the government tried to separate banking and investing because of the very same reason bitcoin isn't used as a currency - volatility and risk. But what if the management of the company is so disciplined - as Peterffy's team is - that they voluntarily do a better job? I see big things for IB, especially if they start adding services beyond just taking commissions for investments.

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #413 on: January 14, 2018, 06:49:55 AM »
Does that mean of I use it to withdraw euros in Europe it will debit my IB account in euros? If so, when combined with their very cheap currency exchange, this would make an IB account worthwhile for travel purposes alone for many people.

I definitely seethed when I converted CAD to MXN for a trip to Mexico at a bogus retail exchange rate when I had pesos in my IB account already.

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #414 on: January 14, 2018, 10:54:08 AM »
I am not sure about this feature but that would be awesome. I suspect it depends on whether the Mastercard region supports multi-currency cards like UK or some Euro issued VISAs/MCs...On their website for the US card they say, "Mastercard converts the currency to US dollars and this is how it appears on your statement."

So possibly cad will bill in CAD$ and euro card in EUR$ or GBP$...I suppose it could create a short position..
But either way, no more moving money around or foreign exchange fees, although you may have to do forex trade internally every once in a while.

compoundinglife

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Re: IBKR - Interactive Brokers
« Reply #415 on: January 14, 2018, 11:05:55 AM »
They are rolling out mastercards without forex fee, 0.50 cent atm withdrawal fees globally to Canada and Europe this year and available already for the US. Given their low cost structure, borrowing costs, you can see this as a kind of bank. I don't see why in the future brokers and banks can't be one and the same. Now in the past the government tried to separate banking and investing because of the very same reason bitcoin isn't used as a currency - volatility and risk. But what if the management of the company is so disciplined - as Peterffy's team is - that they voluntarily do a better job? I see big things for IB, especially if they start adding services beyond just taking commissions for investments.

I have debit cards and can write checks on all my taxable brokerage accounts. Schwab reimburses all ATM fees, charges no forex fees either on my brokerage ATM card. So this is really nothing new. I have been using a brokerage account like a bank account for the past 10 years. One nice thing about IB though is their margin rates.

I agree that this could be big for them however if it is nothing new and not a differentiator vs other brokerage houses.
 

rb

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Re: IBKR - Interactive Brokers
« Reply #416 on: January 14, 2018, 02:07:30 PM »
Does that mean of I use it to withdraw euros in Europe it will debit my IB account in euros? If so, when combined with their very cheap currency exchange, this would make an IB account worthwhile for travel purposes alone for many people.

I definitely seethed when I converted CAD to MXN for a trip to Mexico at a bogus retail exchange rate when I had pesos in my IB account already.
I haven't looked too much at how they structure the cards. But there may be some issues with security. I just like many people have had cards duplicated. With a regular Visa worst case scenario is I get dinged to the limit of the card. If someone steals/duplicates the IB card and gets access to all my IB funds, then I'll gladly pay the usurious FX commissions charge by the banks.

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #417 on: January 14, 2018, 02:11:45 PM »
some banks in eu have limits for various types of purchases you can set min/max for waveless, pos, over the phone , atm withdrawals. You can set a low limit or change it temporarily but it's not perfect. Also while there is Schwab in the US, I'm not aware of such a product existing in Canada and in Europe I do not know but imagine it would be more competitive than USA.
« Last Edit: January 15, 2018, 09:09:10 AM by scorpioncapital »

whiterose

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Re: IBKR - Interactive Brokers
« Reply #418 on: January 17, 2018, 12:19:56 PM »
The numbers are out: https://investors.interactivebrokers.com/ir/main.php?file=latestEarningsPR

Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ?

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #419 on: January 17, 2018, 01:07:29 PM »
Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ?

Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power. On a GAAP basis, diluted EPS is lower YoY. But on an adjusted basis, it is higher YoY. At first glance, the changes in the U.S. tax code seem to be the main culprit.