Interactive Brokers - Pros and cons?

[Punter786]

Biggest pros of trading with IB and Sharekhan is that you get assured reliability. Almost 100% glitch free relaxed trading, even in a very highly volatile day.

 

[iTrade]

Why is it that brokers like Interactive Brokers can offer FULL automated trading to Indian retail customers without any strategy approval from NSE and RKSV/Zerrodha cannot offer? They offer semi automated solutions and assk for strategy approval

 

[creepisback]

Biggest pros of trading with IB and Sharekhan is that you get assured reliability. Almost 100% glitch free relaxed trading, even in a very highly volatile day.

Do you know that one year back IB didn't open up their trading terminals on 1st Jan saying some year end thing (all their markets except India was closed). So they decided to not allow any trading.

A close friend uses IB, it is definitely not glitch free trading. Yes the platforms are very good, but the issue with feed etc do happen. I was told that the main reason is because of the poor bandwidth offered by data centers and leased line in India and exchanges enforce brokers to not be on the cloud (use AWS etc).

 

[Punter786]

Do you know that one year back IB didn't open up their trading terminals on 1st Jan saying some year end thing (all their markets except India was closed). So they decided to not allow any trading.

A close friend uses IB, it is definitely not glitch free trading. Yes the platforms are very good, but the issue with feed etc do happen. I was told that the main reason is because of the poor bandwidth offered by data centers and leased line in India and exchanges enforce brokers to not be on the cloud (use AWS etc).

Well, that is their rule of not allowing trading on certain days. Those who trade with them know this rule I presume. So how is this same as having poor technology and unreliable systems a la Zero(ga)dha et al?

Individual trading experience can differ and will differ due to factors like internet speed, old PC, OS etc. But from what I have seen, heard and know, IB and SK are indeed the epitome of reliability.

 

[tradedatrend]

Many of you talked about low brokerage of ~ Rs. 300 / 5 USD per month, but their website shows, am I missing anything ?

India 2 - Tiered Fees (plus Securities Transaction Tax, Exchange Charges, and Service Tax)
Monthly Trade Value (INR) 4 Fee per Trade Value Minimum per Order
=< 30 crore (300,000,000) 0.05% 3, 7 INR 30.00 4
30 =< 100 crore (1,000,000,000) 0.04% 3, 7 INR 30.00 4
=> 100 crore (1,000,000,000) 0.03% 3, 7 INR 30.00 4

 

[bpr]

Many of you talked about low brokerage of ~ Rs. 300 / 5 USD per month, but their website shows, am I missing anything ?

India 2 - Tiered Fees (plus Securities Transaction Tax, Exchange Charges, and Service Tax)
Monthly Trade Value (INR) 4 Fee per Trade Value Minimum per Order
=< 30 crore (300,000,000) 0.05% 3, 7 INR 30.00 4
30 =< 100 crore (1,000,000,000) 0.04% 3, 7 INR 30.00 4
=> 100 crore (1,000,000,000) 0.03% 3, 7 INR 30.00 4

where did u get that ? give link?
May be outdated.

and the 300 Rupees is account inactive charge not brokerage ..

for futures they have 2 plans
Fixed 0.01%

Tiered 0.012 to 0.008 depending on monthly volume.

https://www.interactivebrokers.co.in/en/index.php?f=commission&p=futures1
https://www.interactivebrokers.co.in/en/index.php?f=commission&p=futures2

 

[tradedatrend]

I had seen those rates very immediately at the time of post. Could have been some other problem.

Thanks for sharing this.

Could you share more information ?

 

[rmike]

Am a bit surprised to see that the most major con (at least IMO) has not been highlighted by anyone! Or maybe, its applicable no longer?!!

Five years back when I sent an account opening enquiry to their Mumbai office (the only office in India, at that time - and maybe even now), the only issue which gave me significant pause was their stipulation of not allowing any fresh trades to be opened after 1430 h (2:30 PM). This kinda cramped my style a fair bit as some strategies, which were specifically structured to take advantage of the closing session squeeze of intraday traders (trapped on the wrong side), would not have been able to be deployed

Regards,

 

[sspms2002]

Hey there...I am also using IB from last 1.2 yrs , though not active trading from last couple of months...

But as a novice i can tell you what i liked and disliked.

Pros: Very good Trading platform, and very good at entering and exiting trades with just one key stroke..which is very very good....

Charts and multitude of Tech indicators..and its protfolio mgmt system is very advanced with algo trading capability..

You can trade from Level 2 directly....which i also do.
Chart trading is alo available..

Very secure and robust..

Cons: As put up by rMike...i feel strangulated after 2.30 as i cannot put up any new SHORT positions...
Also they seem to have not many stocks available for SHORTING...that also hurts...

Margin req are high...Not sure if they allow Pre /Post merket orders..i had not tried them..

One more big Drawback is their prints are not real time...so if you are a kind of trader who follows prints..its not useful..

 

[bpr]

Hey there...I am also using IB from last 1.2
...
One more big Drawback is their prints are not real time...so if you are a kind of trader who follows prints..its not useful..

what do u mean by this. pls Explain