Author Topic: Interactive brokers  (Read 8006 times)

Fiador

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Interactive brokers
« on: June 06, 2013, 12:11:39 AM »
Hi all,

I have tried to open an account with Vanguard but it was not possible as I am spanish and living abroad in Dubai.
Any feedback in Interactive brokers? As I see I can open there.

Also if anyone can enlightme with any affordable broker offshore, as I am living in Dubai I do not pay taxes while here

Thx

xocotl

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Re: Interactive brokers
« Reply #1 on: June 06, 2013, 08:19:12 AM »
I use Interactive Brokers in the US, and have had a great experience with them. They're not exactly a mustachian choice though -- they primarily cater to active traders. This means while they have super cheap commissions, very competitive financing (can get margin loans through them at 1.6% right now) and a pretty good trading platform, they have fairly high activity minimums. On my account I basically end up paying a minimum of $20 a month between market data fees and minimum commission/activity fees.

Also, while, like I said I've had a great experience with them, since they cater to active traders they expect you to know what you're doing. I haven't heard very good things about their customer service, although in my limited interactions with it I haven't had any major problems.

mnvalente

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Re: Interactive brokers
« Reply #2 on: June 08, 2013, 01:45:17 PM »
Hi.

I also live in dubai and face the same problems (not paying taxes :)

I have posted a couple of solutions on another thread:
http://www.mrmoneymustache.com/forum/investor-alley/investment-options-for-european-residents/

Let me know what ou decide to do!

ivyhedge

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Re: Interactive brokers
« Reply #3 on: June 13, 2013, 10:54:20 AM »
Xocotl's comments are apt.


I've had only positive experiences with iB: on the retail and institutional sides.


And while I've recommended them to some folks who I feel will benefit from their excellent, fully definable platform and great rates, I don't do so for many since the vast majority of iB's business is geared toward financial professionals.


They are highly rated for many reasons, though: not just minuscule commissions and the ability to trade in 20+ markets (17+ currencies) from any continent! :)

Freestyler

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Re: Interactive brokers
« Reply #4 on: September 20, 2013, 02:52:12 AM »
I know I arrive quite late to this...

I looked into IB in the past when I was an active trader. These times have passed probably not to come back again. However, and after what has been said here (and reflects what was my view of IB) I wonder whether you think IB can be a good choice at all for a long term bogleheads portfolio with index funds as mine. Though I would say probably no, the truth is that 20$ a month is far less that what I am paying with my current allegedly cheapest option in Spain. I live in France now, what I believe doenīt make things any better (probably worse, indeed).

ioseftavi

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Re: Interactive brokers
« Reply #5 on: September 20, 2013, 08:08:59 AM »
I use Interactive Brokers in the US, and have had a great experience with them. They're not exactly a mustachian choice though -- they primarily cater to active traders. This means while they have super cheap commissions, very competitive financing (can get margin loans through them at 1.6% right now) and a pretty good trading platform, they have fairly high activity minimums. On my account I basically end up paying a minimum of $20 a month between market data fees and minimum commission/activity fees.

Also, while, like I said I've had a great experience with them, since they cater to active traders they expect you to know what you're doing. I haven't heard very good things about their customer service, although in my limited interactions with it I haven't had any major problems.

They are not the mustachian choice, but if you're going to trade actively, using derivatives, or in foreign markets, they are outstanding.  I work in the industry and my experiences and hearsay about them are entirely positive.  Good platform, very fair rates, and quality service.  If I had to pick a broker/dealer that I would call the "Vanguard" for active/option/forEx traders, Interactive Brokers would be it.  My former firm used to lose active traders to them fairly regularly (and our own platform wasn't shabby at all), and when I heard the trading / margin rates that iB offered, I couldn't really fault them for making the switch.

What xocotl said needs to be kept in mind though - they are not for people who don't have high regular trading activity, and they are not for amateurs.  If you're a buy-and-hold investor only interested in index funds, there may be a better choice (even if you're abroad, I would suggest you check around).  If you open an interactive brokers account solely to hold index funds, you're paying for / receiving a lot of features that you probably won't want or need.

KingCoin

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Re: Interactive brokers
« Reply #6 on: September 20, 2013, 09:13:50 AM »
I use IB and think they're great. Minimum is only $10 a month, which is less than some brokers charge for one trade. They charge half a cent a share with a $1 minimum, so a 200 share lot costs $1 vs $8+ elsewhere.

If you want to use leverage, they're almost the only game in town. Compare their rates of 0.73-1.58% to other retail shops that commonly charge upwards of 8%.

I've found their customer service to be very good. I rarely wait on hold more than a minute or two, and they offered to send a representative to my home to show me the ropes and get me up and running.

Not as good as a Bloomberg terminal, but not $50k/yr either.

Freestyler

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Re: Interactive brokers
« Reply #7 on: September 20, 2013, 06:00:21 PM »
Thanks to both of you. Yes, thatīs what I thought.

I guess I was just too eager to think that a broker with such a reputation as IB could serve my needs.

Todge

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Re: Interactive brokers
« Reply #8 on: October 06, 2013, 01:09:00 AM »
I'm based in HK and have used IB for a while now. Much cheaper than any of the bank options for trading (except HSBC's free monthly stock investment plan - but that's limited to HK stocks only).

IB rates are low, really low. If you believe that small costs add up over time then IB helps you keep costs low. While you are in the acquisition phase and buying on a regular basis IB is a good choice. Once you are no longer doing that, the $10 monthly fee might become a bit of a drag. I don't pay for any research or data so my monthly fee is just $10. Trade costs are deducted from the $10 fee so as long as you buy on a monthly basis you are getting a pretty cheap platform. That's the benefit - IB is set up for active traders so we non-daily traders get that benefit as well.

However, IB's platform can scare some people away, but for most investors if you ignore the bells and whistles it's pretty straight forward - spending an hour or so learning how to use it is a good investment in your own skills anyway.

The other thing I like about IB is that it allows you to forward date purchases. So you can set up advanced orders to 'automate' your good behaviour.

I've always found the customer service very good. Transferring money into and out of IB is also very simple.