Interactive Brokers - am I worrying too much? - Reviews of Brokers and Data Feeds | futures io social day trading
futures io futures trading


Interactive Brokers - am I worrying too much?
Updated: Views / Replies:7,721 / 14
Created: by lazarus Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1  
 
Thread Tools Search this Thread
 

Interactive Brokers - am I worrying too much?

  #1 (permalink)
Trading Apprentice
Munich, Germany
 
Futures Experience: Beginner
Platform: TOS
Favorite Futures: Stocks
 
Posts: 2 since Aug 2012
Thanks: 0 given, 1 received

Interactive Brokers - am I worrying too much?

Hi all,
I was looking to open IB account for some time now.
I needed some time to collect $10k, their minimum for opening an account.
I thought this minimal figure is also fine to start with in order to be able to make meaningful trades using proper money management (for example, risking max 1% of total portfolio on any trade).

My pros for using IB were/are:
-shortable stocks
-low stock comissions
-reputable/listed firm

Cons:
-minimum activity fee ($10, waived if $30 is spent on commissions for the month)
-data feed fee (US stocks) ($10, waived if $30 is spent on commissions for the month)
-cancel/modify order fees
-not the best platform (java based, no historical data scans and analysis like on TOS)

I would probably combine IBDs Can Slim strategy and there and then (let's say 1-2x month) would probably short some stocks intraday or holding couple of days.
When the market would be in correction, obviously I wouldn't make any trades based on CanSlim strategy.
So there might be easily a period when I wouldn't make any trade for a month or two.
All over, let's say that I would make aprox. 20-30 round trades a year (avg trade $1.000-$1.500).

So, as you can see, I won't trade very actively and won't be spending $30 on commission for the month for sure.
I am worried that on my $10k capital, $240/year in commissions is too much. That's 2,4% cost of doing business.
If I am aiming or let's say would be satisfied with 10% yearly return, that would drag it to 7,6% before tax, which after 28% capital gain tax (Germany) is miserable 5,4% net return.

So basically, in order to make a 10% net return, I would need to make a yearly gain of 17% (comm. not incl., and modify/cancel fees not included), which is I believe very hard to achieve consistently.

What are your opinions, am I over-thinking this or worrying too much?

Thanks!

Reply With Quote
The following user says Thank You to lazarus for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,638 since Mar 2010
Thanks: 4,225 given, 25,557 received
Forum Reputation: Legendary


@lazarus: You are absolutely correct in your reasoning. There is no free lunch.

With an account of 10k is not worth spending the time to do the research on financial markets and stocks, unless you really enjoy doing that.

You should consider the commissions and your trading losses as a tuition fee. After all in absolute terms $ 240 is next to nothing. That is exactly the amount that buys me a meal for my family at the local steak house.

What is more entertaining

(1) go to enjoy some food with your family or

(2) have some fun trading stocks over a year?

Reply With Quote
The following user says Thank You to Fat Tails for this post:
 
  #4 (permalink)
Elite Member
Karlsruhe, Germany
 
Futures Experience: Advanced
Platform: MT4 , INVESTOX ( & owner of MC and AB))
Broker/Data: IB , MBT , Alpari , Pepperstone , Forextrading
Favorite Futures: FX SLV
 
LoboTrader's Avatar
 
Posts: 27 since Nov 2011
Thanks: 226 given, 13 received

@ Lazarus :
Why not have a look at Captrader.de, which also serves as Whitelabel for IB, do NOT select RT quotes which not appears to be necessary in your case.
Need less than 10 K cash to open account , no cost for ordermodify and other, same low commission for US stocks. Need to confirm all my statements. All I say is : Have a look.
Lobo
android & tapatalk

Do not trade alone

Last edited by LoboTrader; December 29th, 2012 at 01:12 PM.
Reply With Quote
 
  #5 (permalink)
Market Wizard
Switzerland
 
Futures Experience: Intermediate
Platform: Investor/RT
Broker/Data: IB / DTN
Favorite Futures: Futures
 
Posts: 4,107 since Feb 2012
Thanks: 3,774 given, 7,602 received
Forum Reputation: Legendary

Cost optimization


lazarus View Post
Hi all,
I was looking to open IB account for some time now.
I needed some time to collect $10k, their minimum for opening an account.

Hi @lazarus

In my experience you do not need min. 10K$ to open an IB account as long you are not trading futures.

@Fat Tails - The steak house example is very nice!
Another one: The OP does no longer need to practice english - and he gets a bonus by not
taking an online course to be educated in english - which is around $240 per year

Conclusion: Running with IB is not always smooth - but after all not costly!

Cheers
GFIs1

Reply With Quote
 
  #6 (permalink)
Elite Member
Karlsruhe, Germany
 
Futures Experience: Advanced
Platform: MT4 , INVESTOX ( & owner of MC and AB))
Broker/Data: IB , MBT , Alpari , Pepperstone , Forextrading
Favorite Futures: FX SLV
 
LoboTrader's Avatar
 
Posts: 27 since Nov 2011
Thanks: 226 given, 13 received

some links

upfront ... I have Zero benefit from this posts other than supporting the same way I was supported in the past here at futures.io (formerly BMT) (i.e. by Fat Tails to name just one :-) )

Please review following links :
1.) Brokervergleich | Brokervergleich, Lynx, Lynxbroker, Flatex, Cortal Consors | Captrader

2.) Preise und Konditionen | Aktien, Futures, Optionen, Online Trading, Broker | Captrader

a.) 5 K Min starting Cash , b.) again I question the need of any realtime quotes , I DO use one (ARCA) which I rarely need as I trade just like Lazarus , low frequent (SLV and some Stocks at NA)

Lobo

Do not trade alone
Reply With Quote
 
  #7 (permalink)
Elite Member
Lehrte, Germany
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: PTP / Rithmic
Favorite Futures: NQ
 
Daytrader999's Avatar
 
Posts: 1,161 since Sep 2011
Thanks: 1,137 given, 1,565 received


GFIs1 View Post
Another one: The OP does no longer need to practice english - and he gets a bonus by not
taking an online course to be educated in english - which is around $240 per year

Well, since the participants in this thread are all German-speaking, we could easily continue this thread in the German section of futures.io (formerly BMT)...

Reply With Quote
 
  #8 (permalink)
Elite Member
New York, NY
 
Futures Experience: Advanced
Platform: OptionVue
Broker/Data: IB
Favorite Futures: RUT, SPX options
 
Bookworm's Avatar
 
Posts: 157 since Apr 2010
Thanks: 64 given, 144 received


lazarus View Post
Hi all,
I was looking to open IB account for some time now.

Are you sure there are two different fees each month?

Reply With Quote
 
  #9 (permalink)
Trading Apprentice
Munich, Germany
 
Futures Experience: Beginner
Platform: TOS
Favorite Futures: Stocks
 
Posts: 2 since Aug 2012
Thanks: 0 given, 1 received

@Fat Tails
Well, 10k is the beginning amount which I plan to invest now. The plan is to add each year additional capital of about 20k.
Of course, for the second year, with the 30k in capital, these costs would be percentage wise 3x lower.
But my question was focused more on how to do the best I can for this first year, minimizing the expenses.

Regarding the stake dinner, I don't know if you meant it as a joke, but my starting capital doesn't mean that I don't enjoy nice dinner with my wife and friends every now and then (probably more than usual), for what it matters.
It just means that this is the capital that I'm willing to put aside and invest in the market for the time being, which again doesn't mean that I'm willing to lose it or to consider it just a learning tuition. I can do fair amount of that just by paper trading.
I'm reading and studying about the markets for the last one year. I've also already had some minor experience investing in the markets.
I also don't agree that it's not worth to spend time to do research on capital markets. I believe that prior to investing hard earned money into the markets, everyone should read and do the research as much as possible about the topic, other way you're just a breakfast for the sharks, waiting to be eaten alive...

@LoboTrader
Do you work for Captrader, or what? Thanks, but no thanks! Moderators?

@GFIs1
You do need 10k minimum. It's very easy to check it on IB site, no need to make an assumptions at all for the assumptions sakes.
Didn't get the thing with the bonus for not taking english classes? Care to explain? Thanks.

@Bookworm
interactivebrokers.com. Easily verifiable... What's up with all the replies for the posting sake?

Reply With Quote
 
  #10 (permalink)
Trading Apprentice
Milwaukee, Wisconsin, U.S.
 
Futures Experience: Advanced
Platform: Ninja
Favorite Futures: ES, Currency Futures
 
Posts: 14 since Jun 2012
Thanks: 0 given, 3 received

consider equity index futures


yes - most of the replies had no valid information

to lazarus: perhaps you should consider day trading stock index futures instead of individual stocks, using a chart-based methodology. Then you could choose from a wider selection of brokers, some with lower fees than IB. You would have a better chance of achieving your percentage goals with the German DAX or Eurostoxx contracts.

Reply With Quote

Reply



futures io > > > > Interactive Brokers - am I worrying too much?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

Dec 7

Linda Bradford Raschke: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Is Interactive Brokers bad? muscleman Reviews of Brokers and Data Feeds 69 February 6th, 2014 07:40 PM
Interactive Brokers - More Problems sam1197 Reviews of Brokers and Data Feeds 20 January 24th, 2012 08:13 AM
Interactive Brokers fees + NinjaTrader thomas79 Reviews of Brokers and Data Feeds 2 November 19th, 2011 06:56 PM
Ninja and Interactive Brokers dale1670 NinjaTrader 17 September 25th, 2011 12:22 PM
Stop me from using Interactive Brokers.... NetTecture Reviews of Brokers and Data Feeds 12 June 27th, 2011 10:54 AM


All times are GMT -4. The time now is 05:23 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-11-21 in 0.12 seconds with 20 queries on phoenix via your IP 54.224.18.114