Author Topic: I am done with Interactive Brokers! (2019 update: I am back to IB)  (Read 14109 times)

hillfronter83

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #20 on: January 07, 2020, 07:29:41 AM »
None of my positions are even close to 1% of share o/s. I'm interested to know what companies they are.

What I found annoying was that for illiquid stock they wouldn't allow you to enter order to sell at bid or buy at ask because of "dramatic price movement". For example, if last trading price is $3/share, they won't allow me to enter a sell order at $2.5/share, even when I called them. By the time I can enter an order, the bid/ask will disappear, or at least not at size I wanted.

With the amount of commissions they charge on penny stocks, I'm looking at options to move assets somewhere that have 0 commission.


writser

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #21 on: January 07, 2020, 07:34:36 AM »
Rich investor problems, pffft.  :P

If only they were. I cannot sell or buy ASFI anymore even though I just hold 100 shares worth $1000 .. Admittedly I had a larger position in the past but even then I wasn’t close to owning 1% which would be 65k shares - a position worth a few hundred k and three weeks of trading volume ..
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LongHaul

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #22 on: January 07, 2020, 07:47:40 AM »
Thanks for the heads up on the IB issue 1% issue.   Sounds like a royal pain.
 Why did they do that?
Is it US securities only?



writser

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #23 on: January 07, 2020, 07:50:35 AM »
Seems like it has to do with them getting into trouble with FINRA for allowing affiliates to trade without restrictions. Probably they were too lax at first and are now compensating by being extremely obnoxious. We’ll see where it ends .. So US only.
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Gregmal

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #24 on: January 07, 2020, 07:58:05 AM »
I am not sure I fully understand the specific issue relating to Interactive; I have accounts there are have had my share of inconveniences, but not relating to this. Typically however, it would appear this to be more an issue relating to the security, vs the amount owned. I use IBKR, Hilltop, Fidelity, RBC, and Axos. All have their own quirks and inconvenient features. At the end of the day it always comes back to cover your ass regulatory bullshit. And the two biggest triggers are penny stocks(sub $10 shares occasionally and definitely anything under $5)/OTC positions, and AML.

I think I mentioned in a previous thread, but even Fidelity would not transfer in(from an outside firm) shares in LAACZ and HTL. Two companies that are hardly "high risk" but when judged by their covers, fit the profile.

I do believe there is a high correlation between industry wide fee reduction, and lack of risk a firm in willing to take. The motto in the biz used to be that paying regulatory fines was just a cost of doing business. But as fees get driven down I'd imagine the number of favors firms are willing to do for clients contracts, and the degree to which they are willing to dedicate resources to potential compliance matters, dwindles. As such, they just throw many of these issues on the compliance "lists". Which just inconvenience the fuck out of us. Now its our "cost of doing business".

capitalg

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #25 on: January 07, 2020, 08:38:36 AM »
I use IBKR, Hilltop, Fidelity, RBC, and Axos.

Gregmal - can you expand on Hilltop / RBC / Axos...I'm curious how you're using these institutions as I don't see those discussed often.  I'm also not sure if you are able to open accounts directly with those firms, or whether you need something like an "introducing broker" - I can't say I'm familiar with that process other than I've heard the term (not sure if I'm using it 100% correctly here).  Are there specific instances in which you use each of these?  Are these cost effective options for an individual investor?  (I understand it probably depends on the type of trading, but curious to hear any further thoughts you can share)

Gregmal

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #26 on: January 07, 2020, 11:40:52 AM »
I use IBKR, Hilltop, Fidelity, RBC, and Axos.

Gregmal - can you expand on Hilltop / RBC / Axos...I'm curious how you're using these institutions as I don't see those discussed often.  I'm also not sure if you are able to open accounts directly with those firms, or whether you need something like an "introducing broker" - I can't say I'm familiar with that process other than I've heard the term (not sure if I'm using it 100% correctly here).  Are there specific instances in which you use each of these?  Are these cost effective options for an individual investor?  (I understand it probably depends on the type of trading, but curious to hear any further thoughts you can share)

Theres a couple ways to go. For those you would either need a direct clearing arrangement, or an introducing broker. It is indeed largely dependent upon your needs. The biggest advantage is that if one gives you a hard time or presents problems, you have backups. But Ive found it helpful because each can provide their own benefits. Pricing is typically negotiated. You're probably paying anywhere from $5-$45 per trade. Margin rates are in between what you'd pay at IB and what you'd pay at a Fidelity. The main differences and areas of use Ive found relates to things like what types of accounts you have, if you manage money for others- where the individual with the account resides, the types of securities you can buy/sell and/or transfer in, and purchasing ability, ie, some of these firms you can buy up to, lets say, $500k in stock without a penny in available funds, and you'll have 5 business days to fund it- good for unexpected opportunities.

Axos for instance, you can own anything under the sun and margin pretty much anything under the sun. Although regulators have been giving them some issues lately.

Hilltop is friendly to foreign investors and Canadian investors, whereas many firms, including ironically enough, RBC, will not touch non-retirement Canadian accounts because of jurisdictional burdens with the provinces.

RBC Ive found is generally good enough at everything but the best at nothing.

If you are someone who heavily invests in specific types of arcane securities or securities the regulators would flag, ie low volume, OTC, micro cap, there is probably a big advantage to using these types of firms and paying the extra few bucks. If you are just buying Apple and Google, its not as necessary and you're probably better off with traditional names.

Jurgis

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #27 on: January 07, 2020, 11:58:37 AM »
Rich investor problems, pffft.  :P

If only they were. I cannot sell or buy ASFI anymore even though I just hold 100 shares worth $1000 .. Admittedly I had a larger position in the past but even then I wasn’t close to owning 1% which would be 65k shares - a position worth a few hundred k and three weeks of trading volume ..

A bunch of CoBF people have previously tried to persuade me that IB is the best thing since the sliced bread.

Now I'm gonna gloat and say "I told you so"8)

No, I'm gonna say: "Sorry you guys are having these issues".  :'(
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fareastwarriors

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #28 on: January 07, 2020, 12:13:00 PM »
Rich investor problems, pffft.  :P

If only they were. I cannot sell or buy ASFI anymore even though I just hold 100 shares worth $1000 .. Admittedly I had a larger position in the past but even then I wasn’t close to owning 1% which would be 65k shares - a position worth a few hundred k and three weeks of trading volume ..

A bunch of CoBF people have previously tried to persuade me that IB is the best thing since the sliced bread.

Now I'm gonna gloat and say "I told you so"8)

No, I'm gonna say: "Sorry you guys are having these issues".  :'(

The margin rates are too good to move away from.

I only know how to buy and sell equities. I haven't even explored 99.9% of the tools being offered.
« Last Edit: January 07, 2020, 12:20:57 PM by fareastwarriors »

Spekulatius

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Re: I am done with Interactive Brokers! (2019 update: I am back to IB)
« Reply #29 on: January 08, 2020, 05:21:53 AM »
Rich investor problems, pffft.  :P

If only they were. I cannot sell or buy ASFI anymore even though I just hold 100 shares worth $1000 .. Admittedly I had a larger position in the past but even then I wasn’t close to owning 1% which would be 65k shares - a position worth a few hundred k and three weeks of trading volume ..

Margin rates can be negotiated. Just threaten to leave for lower margin rates at IB and see how your broker respond. They may not exactly match IB‘s rate but probably close enough.

A bunch of CoBF people have previously tried to persuade me that IB is the best thing since the sliced bread.

Now I'm gonna gloat and say "I told you so"8)

No, I'm gonna say: "Sorry you guys are having these issues".  :'(

The margin rates are too good to move away from.

I only know how to buy and sell equities. I haven't even explored 99.9% of the tools being offered.
Life is too short for cheap beer and wine.