Im trying to open an account with IB, but i noticed they ask you how long you have been trading to "consider" if they should open an account for you or not. I dont know if i answer honestly if ill be denied an account or will not have full access to all the option plays i would like to do. Im learning about options at a hasty pace, and feel I have a lot of knowledge, but lack of experience might hold me back. What answre will allow me to open an account with them for the "years of experience" and "# of trades per year" boxes for the stocks and options areas?
If you are ONLY trading options, than I would go to thinkorswim.com, thats where I trade options, and the commissions are cheap enough, especially for a small account. Easy to open also. hope this helps (I had not exp. w/ IB) KK
AFAIK most brokers won't bother checking to see if you really traded at other brokers, or run a credit check, or ask for pay stubs, tax returns, etc., unless you are opening a very large account and want to sell naked calls or something. They ask for all that experience, because they don't want their clients to lose all their money. And if you do and complain, they will just point out the signed agreement at arbitration that says you are experienced. And of course, if you do lose all your money it's your own fault...unless you have an Etrade account and it was stolen!
Tyler; from another post I saw I'd assume you're a beginner to intermediate options trader. If you're going to trade stock options I'd recommend thinkorswim. They cost a bit more, but the service and software you get (especially for a beginner) will more than make up for it. IB is a good broker, but they're not going to hold your hand - at all. If it's futures you're after, then IB is likely the place to go. thinkorswim offers only the ES at this time. There's a lot of good press for Optionsxpress here (no pun intended), but I have no personal experience with them, as I do with IB and tos. That aside do your due diligence and good luck in your trading (and learning).
The brokerage firms are required to establish suitability standards. Your level of approval can be, in part, based on your experience. The problem if you "game" the account opening documents is that at some future date if you file a suitability claim .. your new account document becomes defendant exhibit A and can work against you.
=========== Tyler; Good question and why dont you shoot straight with them; and especially with IB, great broker,SMART routing lives its name . Not sure if you want to have ''acess to all plays starting out''?????? Glad I started /still have cash account with OptionsXpress, beciuse OX is MUCH more user/starter friendly. , better charts, better quotes. than IB In other words with IB margin account , even planning trades; have mistakenly bought 2 times as much as i planned, sold to open when meant to sell to close, & besides IB wants you to have 2 accounts anyway[IB plus another account]] If you are tek savvy ,some experience and profitable IB is great; if you are not profitable, highest probability , you will lose money faster with IB cause they are faster for sure.
IB: I learned to love IB's TWS for swing trading equities. They were one of the first to offer the more complex order types. I also position traded options with IB. They were good and inexpensive, but the options portion of the platform seemed cumbersome and thrown together. It would probably work for someone with a great deal of options experience. But if you have trouble you have to contact them - and that's a whole other story. TOS: They're more expensive, but you get a lot more for the money. The options analysis built into their platform is first rate, especially for no additional upfront charge. Also, their customer service is hands down the best I've used. When I got assigned for the first time they were right there to walk me through. I had a problem with beta-weighting in my portfolio - live chat for a minute and 5 mins later - fixed. Also, I haven't been hit with any cancellation fees, and I have to cancel and replace often on some of the less liquid option spreads (shooting for mid-point pricing or better). When I first looked away from IB I couldn't believe someone would pay more than double the option commission I was getting. Now I know why. My take: 1) If you're day trading or scalping stocks/futures - go IB - it's built for it. 2) If you're just substituting calls and puts for stock in a swing or position trading strategy you can likely go IB with no problem. 3) trading electronic futures options - IB. 4) If you're going with the more advanced option strategies then I'd strongly consider TOS until you're a seasoned pro (and maybe beyond). My outlook - IB will continue to improve their options interface. A lot of what they added lately looks like it came straight from TOS (or perhaps OX). The latter two will continue to add features and cut commissions. In a couple of years we won't recognize any of these platforms or believe we were paying this much for commissions. My remarks are focused toward IB and TOS, two brokers I've used. I like them both. I've heard good things about OX as well. Just decide what you think you'll be doing, do your research, and have at it. Good luck.
Quote from Tyler Durden: Im trying to open an account with IB, but i noticed they ask you how long you have been trading to "consider" if they should open an account for you or not. I dont know if i answer honestly if ill be denied an account or will not have full access to all the option plays i would like to do. Im learning about options at a hasty pace, and feel I have a lot of knowledge, but lack of experience might hold me back. What answre will allow me to open an account with them for the "years of experience" and "# of trades per year" boxes for the stocks and options areas? Tell them the truth re: how long you have been trading. If you've been trading stock, futures or whatever, they should take that into account. Tell them what type of trades you plan to do, how often you plan to trade and the money you will send them. If you want to do basic stuff you don't need a lot of experience. Comments about hand holding not available from IB true. OptionsXpress might be place to start. kny 3