I am currently using Interactive Brokers. My individual account grows to $500K size now. I am thinking that different brokers specialize in different account size. My question is that in what level, should I consider to switch to another broker that have better support for that account size? For example, go to TD Ameritrade? or some professional broker like Goldman Sachs? If you have experience and have the same though as me, please share with your thought. Thank you very much.
There is a wide range of brokers that fall somewhere between IB and GS in terms of minimum account size, pricing, etc.; and this question has been asked before on ET, for example: http://www.elitetrader.com/vb/showthread.php?threadid=238469
I thought Goldman Sachs only takes minimum $10 million accounts if you want to use them as your broker.
Well IB has many clients trading millions. I doubt that you would be able to match IB's services and rates elsewhere with a $500,000 account. That is too small for the larger banks and brokers to give you rates that are as good as IB on as wide a range of services. (If you were just doing one specialized type of trading, then yes there are good alternatives). However, in any case, I think you need to diversify across two brokers. There is too much risk in having everything with one broker. I know it is inconvenient to have to have two brokers but it is advisable in my opinion.
Under some circumstances we can introduce you to and service your account at B of A Merrill Lynch with an account over $500K. Email me you contact information if you'd like to discuss it. Very few large Prime Brokers offer Customer Portfolio Margin under $5M. IB and ML are two of them. We can provide more than just a trading platform and custody of your assets. Bob
Hi, Bob, Interesting to me. What is the main advantages to use Merrill compared to the Interactive Brokers? For example, some additional service that IB does not offer, and which is very important to an account greater than $500K? Thank you very much.
Some of these I would prefer to discuss over the phone or in person. We are a small broker dealer that services the accounts of Hedge Funds, Trading Groups and Active traders. We only offer an institutional service, so each account must have an entity like a LLC or LP. We are the single point of contact for helping you run your trading business. If you open an account at ML, your funds and securities would be custody at ML, but all your communication would go through the Victor Team. Each member of the Victor Team would know you and your needs. We offer automated and custom statements. We offer the same service to a trader with $500K as we do to a hedge fund with $500M. We also offer this person service with competitive rates based on the services we provide and average monthly volume. We help some of our clients through business advisory. Access to third party administrators, accountants, attorneys and when possible cap into for those looking to raise money. Bob
1) you forgot to mention what services beyond what IB offers you could possibly offer other than the year-end-wine-case. But if someone did not care about that but was simply wanting to trade his own account what can you offer beyond what IB offers? 2) You are saying you do not discriminate between clients of different account size? You are telling me if S.A.C. called you to open an account that they are treated in the same way than a client like myself? Are you absolutely certain of that? ;-) 3) So the service actually DOES depend on the monthly volume generated. If I went on a 6 week vacation and came back and called in nobody would pick up the phones, is something along those lines what you are saying? I love a nice traditional broker, someone who sounds like an angel before signing up, rims your hole really good while taking you out, and treats you like shxx after he is done with you. Good old brokerage industry, I am glad its still alive and kickin...
you contacted me via PM to inquire why I sound so angry. I was and am not angry, I am just slightly fed up with brokers in general, nothing personal against you, Bob. Why would most brokers not be able to state their commission structure outright for everyone to see? Why can't you in simple terms list the features you offer that go beyond what IB has to offer? Isn't it the best advertising you can do to show there is honesty involved in your business, that you have nothing to hide, that you treat customers fairly? I mean, I understand that it is easy to "feel up" customers when e engaging them in a personal conversation but I personally have the most respect for those brokers who make it clear they have nothing to hide "here are my services and here are the rates I charge" for everyone to see. Would you not agree?