Nononsense, My posting did not mean to imply that customer property would be unsafe, or would be unsafe during the trading day. Property in an uninsured commodities account is generally less safe than SIPC-insured property in a securities account. This includes the commodities subaccount and securities subaccount of an Interactive Brokers Universal Account. Property in an SIPC-insured securities account is even safer where the broker, as it should, segregates and holds customer property separate from the broker's own assets (even though property held in individual customer accounts is co-mingled, and is not separated from property of other customers, and is instead held in an omnibus customer account covering all customers). An Interactive Brokers commodities account is still relatively safe, because of the various protections offered by IB, although it is not as safe as insured property in a securities account. Interactive Brokers, on its website, explains that it keeps as much of your property as possible in your securities account, because this is safer. Funds are moved to your commodities account only to the extent needed to cover margin requirements in your commodities account. I believe that an IB commodities account is relatively safe, but less safe than an IB securities account. Funds are moved back to your IB securities account when changes in your commodities account reduce the margin required in your commodities account. It would be a little safer if this were done immediately, but IB instead does it every night. I think you misunderstood if you think this means a lack of safety. I am not an employee of IB, and I have absolutely no authority to speak for them whatsoever. Any info I give about IB is purely a point at which you should start your own inquiries of IB. I agree with tomcole about being very careful to make sure that the information you are given comes from an employee who has the authority to give it to you. Tomcole, is it safe to rely on a broker's website?
[QUOTEInteractive Brokers, on its website, explains that it keeps as much of your property as possible in your securities account[/QUOTE] I would not keep any cash with IB because they do not pay any interest on first $10k. It is a scam. I like MBT with the same commission rate. I can easily move money in and out of MBT by ACH into my higher interest on line bank accounts.
I would not keep any cash with IB because they do not pay any interest on first $10k. It is a scam. I like MBT with the same commission rate. I can easily move money in and out of MBT by ACH into my higher interest on line bank accounts. [/QUOTE] Is a scam also that IB doesn't charge any fees for incoming and outgoing wires? Is a scam that IB doesn't charge for exercise and assignments? Is it a scam that IB provides perhaps best margin financing rates in the industry? Compare IB's rates for interest earned and more importantly debit (margin) interest. Very few brokers can compete with those rates. Taking into account all costs, it is clear that there is no scam. Before we go further, how about you posting your margin and credit interest that you're receiving with your broker. Let's do a fair comparison and see who really is providing a better deal.
I think this extremely unfair of you, adityanm. Your use of the word "scam" implies that there is some sort of deception. IB doesn't deceive anybody about its interest payment policies. They are very clearly specified on the IB website. I think you should apologize to IB, and also to the newbie traders who might have been misled by you. Maybe you meant to say that IB doesn't give a good deal on interest? Well, I think that when you learn more, you will realize that IB gives one of the very best deals available with respect to interest, although perhaps there are better deals for people with small accounts (I don't have time to check). If you can find a better deal on interest, my bet is you will give up other advantages of IB, so that you will be worse off elsewhere. Who do you claim gives a better deal, and what are the specifics?
I already said that MB T has a better deal for me. Not everyone has millions sitting in cash to get better interest rate from IB. Just because they posted their policy does not mean that it is fair to all the customers. In the same vein I think most of the credit cards and credit bureaus which charge such a high interest rate are also scams prowling on poor and needy customers. Millionaires can probably negotiate better individual deals some where else too. I doubt if Buffet uses IB for his trades.
I specifically asked you to post the specifics of your better deal, to support your accusations. So also did def. You ignored the request for specific information, and then you distracted your audience with a new accusation, associating IB with rapacious and fraudulent credit card companies. I think that it is totally ridiculous to make such an association. I don't think you can produce any specifics to support your statement, which is nothing more than a wild accusation. You behave so unreasonably and maliciously, that I suspect that you work for an IB competitor, and that you are only pretending to be a customer. Please, no more distractions. Please give us some specifics, so that everybody can figure out if your story has any merit.
I don't have to suspect but you convinced me that you do work for IB or have some other relationship with them to be so upset and are getting so nasty on just one post when there so may other post on this forum such as http://www.elitetrader.com/br/index.cfm?action=view&R_FirmID=43&start=11 by cowpock & 7thdim etc on this very forum and elsewhere http://www.mymoneyblog.com/archives/2005/12/mbtradingcom_re.html#more . I am still in the process of opening 3 accounts with MB T within the last month after evaluating IB & MBT because I wanted to pay less commission than Schwab and Scottrade where I had my accounts. You will find my comments on the IB discussion forum too as to why I did not open the account with them. I am not hiding anything and like to call a spade spade.
i have an account with mbt and to compare ib to mbt is an insult. ib's platform is night and day above mbt's. i've seen many times were mbt's quotes are much slower than ib's. stock commissions at ib are 1/2 mbt's on the first 500 shares which si the size 90% of traders trade ina nd out of. ib is a much larger company than mbt in the order of 10's of times larger. i have an mbt account becasue i don't like too much money at ib. ib has actually become one of the bigger brokers otu there and seems to be stealing business from all. to be honest oen day i'm sure a huge broker like sch or fidelity will come calling for them