Author Topic: I am done with Interactive Brokers! (2019 update: I am back to IB)  (Read 14108 times)

rukawa

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Re: I am done with Interactive Brokers!
« Reply #10 on: July 28, 2019, 05:21:44 AM »
BTW, I went back to IB in January this year.
I find it too much trouble to place multiple orders in various accounts, and it is far easier to use a friend and family account to manage multiple accounts at once. Individual account, IRA account, family member accounts.
Also they pay good cash interest, while a lot of other brokers pay nothing.
I learned the lesson and would not buy any foreign bonds any more. So that's fine to stick with them.

:) That must have been hard to admit.


muscleman

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Re: I am done with Interactive Brokers!
« Reply #11 on: July 28, 2019, 11:16:13 PM »
BTW, I went back to IB in January this year.
I find it too much trouble to place multiple orders in various accounts, and it is far easier to use a friend and family account to manage multiple accounts at once. Individual account, IRA account, family member accounts.
Also they pay good cash interest, while a lot of other brokers pay nothing.
I learned the lesson and would not buy any foreign bonds any more. So that's fine to stick with them.

:) That must have been hard to admit.

I am open to changing my mind as always, just like I can be very bullish and a few weeks later be very bearish.

BTW, I still have some concerns regarding IB's tauted execution quality.
I see this:
https://www.fidelity.com/trading/execution-quality/overview

and this:
https://www.interactivebrokers.com/en/index.php?f=1340

There seems to be some discrepancies among these numbers.

Interestingly, both reports were done by IHS Markit.

I asked IB about this and asked in second half of 2018, where did Fidelity stand. They refused to disclose.

Fidelity provides an easier to read format in FIF:
https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/FIF-FBS-retail-execution-quality-stats.pdf

While IB argued that IB's report was for Q3, Q4 of 2018 and Fidelity's report included Q1 this year, I don't see any material difference between these quaters in the Citadel securities report.
https://s3.amazonaws.com/citadel-wordpress-prd102/wp-content/uploads/sites/2/2016/09/06202722/FIF-Rule-605-606-WG-CitadelSecurities_Retail-Execution-Quality-Stats_Q4_2018.pdf
https://s3.amazonaws.com/citadel-wordpress-prd102/wp-content/uploads/sites/2/2016/09/09175131/FIF-Rule-605-606-WG-CitadelSecurities_Retail-Execution-Quality-Stats_Q1_2019.pdf

Keep in mind that IHS Markit was paid by IB to do the report, so they have to come up with some good statistics even though the numbers may be massaged.
I am muslceman. I have more muscle than brain!

The Investor

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Re: I am done with Interactive Brokers!
« Reply #12 on: August 04, 2019, 07:47:50 PM »
I didn't want to start a new thread and I have a few questions on IB.

Does anyone here use them for their RRSP /  TFSA?  It seems they support that now.  I am looking for something that will allow me to do trades on foreign exchanges, my current broker charges prohibitive prices ($200 per trade + forex charge).

Yeah, I helped my sister in law set up a TFSA account with IB in Canada. I'm based in the UK, and it's a shame they don't offer the UK equivalent ISA account.

gfp

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #13 on: January 06, 2020, 02:13:14 PM »
Just a heads up for folks on the forum that use Interactive Brokers for some of their business - they have a new policy where they will lock you out from trading any security you own more than 1% of the outstanding shares of.  When you tell them you are not an affiliate of the issuer, a compliance analyst at IB will perform due diligence to verify you are not an affiliated person.  Then they will unlock your accounts to trade that security for a period of 2 weeks.  Then you have to do it all over again.  Every two weeks - unless you transfer the shares out to another broker.

Some companies are quite small and 1% of the shares is nothing.  These also tend to be the least liquid securities to trade.  The kind of securities you need to be unlocked for trading at all times in order to take advantage of momentary liquidity and price changes

writser

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #14 on: January 06, 2020, 04:55:39 PM »
Yes, itís fucking terrible. To make it worse, on top of the 1% rule they seem to select positions arbitrarily, e.g. I also got restricted from trading in some securities where I own far, far less than 1%. I also hear from people that they can trade some stocks in one account but not in another. All seems quite a clusterfuck and if they keep this up Iíll probably have to move a significant part of my account elsewhere.
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scorpioncapital

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Re: I am done with Interactive Brokers!
« Reply #15 on: January 07, 2020, 04:44:31 AM »
I didn't want to start a new thread and I have a few questions on IB.

Does anyone here use them for their RRSP /  TFSA?  It seems they support that now.  I am looking for something that will allow me to do trades on foreign exchanges, my current broker charges prohibitive prices ($200 per trade + forex charge).

Yeah, I helped my sister in law set up a TFSA account with IB in Canada. I'm based in the UK, and it's a shame they don't offer the UK equivalent ISA account.

They were probably forced by regulators in Canada. I don't get the impression they really want to.

gfp

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #16 on: January 07, 2020, 06:44:02 AM »
The poor compliance guy I spoke to yesterday (David) sounded like he had been being screamed at by customers all day.  He kept expecting me to blow up on him or something.  I felt bad for the guy..  He couldn't even tell me where the cut-off of ownership was - all he would say is "something like 3/4 to 1% of shares outstanding."  The main issue I'm dealing with I'm at 3% of shares outstanding and that's not close where I can sell a few over two weeks time and have them leave me alone.

We'll see how this policy evolves after they've had to do this dance every two weeks in perpetuity for a while.  Its not like I'm magically going to transform into an affiliated person next month.

Yes, itís fucking terrible. To make it worse, on top of the 1% rule they seem to select positions arbitrarily, e.g. I also got restricted from trading in some securities where I own far, far less than 1%. I also hear from people that they can trade some stocks in one account but not in another. All seems quite a clusterfuck and if they keep this up Iíll probably have to move a significant part of my account elsewhere.

Hielko

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #17 on: January 07, 2020, 06:48:54 AM »
I have messages from David, Jozef, John and Joe. Wonder how many people they have working on this...

Jurgis

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #18 on: January 07, 2020, 06:57:41 AM »
Rich investor problems, pffft.  :P
"Human civilization? It might be a good idea." - Not Gandhi
"Before you can be rich, you must be poor." - Nef Anyo
"Money is an illusion" - Not Karl Marx
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Hielko

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #19 on: January 07, 2020, 07:08:59 AM »
More like tiny company problems... and some ridiculous restrictions (even more than the other ones) on stock where I own just a handful of shares.