Interactive Brokers for US shares

Arb888 · #1 27th September 2008, 10:22 AM

Hi, does anyone use IB www.interactivebrokers.com for trading US shares or other foreign shares?

AW10 · #2 7th October 2008, 02:50 AM

Yes, I use them. Offer very competitive brokerage. Provide access to almost 20 exchanges in the world so if you want to brazilian share, you can do it. Charting platform is lousy but execution is great. For options, they have one of the most flexible option trading platform. You can place order using atleast 4 modes. including trading for charts.
Very flexible reports. Also provides API that you can program (even u can connect it to Excel sheet).

For a beginner, platform might seem too complicated. It is used by many hedgefunds and professionals.

Happy Trading.

VJAY · #3 7th October 2008, 07:06 AM

Quote:

Originally Posted by AW10

Yes, I use them. Offer very competitive brokerage. Provide access to almost 20 exchanges in the world so if you want to brazilian share, you can do it. Charting platform is lousy but execution is great. For options, they have one of the most flexible option trading platform. You can place order using atleast 4 modes. including trading for charts.
Very flexible reports. Also provides API that you can program (even u can connect it to Excel sheet).

For a beginner, platform might seem too complicated. It is used by many hedgefunds and professionals.

Happy Trading.

Hi AW10,
Can you give some other details also.About minimum amount required for trading,fund transfer and security of our cash hence our cash transfered to abroad.So please give some details.
Thanks & Regards
VJAY

AW10 · #4 7th October 2008, 03:32 PM

Quote:

Originally Posted by VJAY

Hi AW10,
Can you give some other details also.About minimum amount required for trading,fund transfer and security of our cash hence our cash transfered to abroad.So please give some details.
Thanks & Regards
VJAY

IB has not such requirement. I guess you can open acct with as low as 2000 USD (plz chk with them directly). But in my view, this is the question which should be answered by you depending on what u want to trade. For example - if you want to trade S&P500 emini - the margin is aroudn 5.5k (increased due to volatility else used by around 2.5k). Add this to the amont that u need as risk capital... (if you can take 250$ risk per trade, then atleast 20 time of 250 = 5k as risk capital.Suggested is atleast 50times). That gives atleast 10.5k minimum acct size to trade S&P 500 emini.. Doesn't matter how much is their minimum requirment.

Regarding stability of brokerage house, they are the number 1 or 2, globally and many InvBanks trade thru them. Their margin requirement and risk mgmt is farily strict. So I will trust them more then eTrade or any other small broker.. In short, pretty stable brokerage.

You can find margin requirements from their website under Trading Section.

Happy Trading.

VJAY · #5 7th October 2008, 08:53 PM

Dear AW10
Thanks very much for your detailed replay/guidence.I will look in their website.

Thanks & Regards
VJAY

devangan123 · #6 7th October 2008, 10:16 PM

AW10

Can Indian Resident can trade into US or Brazil stock exchange ????

AW10 · #7 7th October 2008, 11:44 PM

Quote:

Originally Posted by devangan123

AW10

Can Indian Resident can trade into US or Brazil stock exchange ????

I am not qualified to answer this as I don't know latest RBI rules. Maybe other members can help. For NRI, certainly this is possible to invest globally.
Just found an article from TOI site, accordoing to that Resident Indian can use upto $25k to invest abroad..

My personal opinion, there is enough money to be made in our market and there is no need to look beyond NSE/BSE for trading. For invesetment, risk diversification, it is different game but that needs lot more study before putting the money.

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MUMBAI: Citibank on Tuesday announced the launch of "global banking" – a first-of its-kind facility that will offer global financial products and
services for the resident Indians in India.

Citibank is the first bank in India to launch this facility pursuant to the circular issued by the Reserve Bank Of India (RBI) on the liberalized remittance scheme of US $25,000 for resident Indians.

Under this scheme, residents will be free to remit an amount of up to $25,000 per calendar year for any purpose without any distinction between the transaction being on the current account or capital account. They will be free to acquire and hold immovable property or shares or any other asset without prior approval of the RBI.

The Liberalized Remittance Scheme of remitting $25,000 abroad, is in addition to those already available for private and business travel, gift remittances, donations, studies, medical treatment for which residents can remit required amounts in foreign currency.
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The Following User Says Thank You to AW10 For This Useful Post:
VJAY (7th October 2008)