Discussion in 'Retail Brokers' started by North Pesos, Aug 1, 2002.
Related to earlier posts and for your information,
exactly is an FA account, you trade clients money, you get clients to open accnts with IB, what?
This is exactly that, you are an account trader for some people and trade their money for them. For the moment, IB FA will be exclusively for professional, but hope that this will be extended non-pro in near future. Also, hope to see an open API for that.
What is the advantage of being FA? Do we get commission or profit sharing for that? Just curious!
Usually this is for profit, now the problem is that many brokers don't have this kind of products, you have to collect the client at each month, waste time, trading interface is not integrated for multiple account (a limitation for to trade efficiently). With this kind of setup, everything are automatic for the trader, just to think trading.
Here's the PR from IB on the FA accounts. It explains how they work.
Financial Advisor Accounts
IB offers Financial Advisors (FAs) the ability to open Separately Managed Accounts (SMAs) to manage money for multiple clients. The advantages of the IB Financial Advisor Account are our low commissions and the IB Universal Account which allows an FA to trade stocks, options, futures, options on futures and foreign exchange for their clients all from a single SMA.
Financial Advisors complete client brokerage applications electronically at the IB web site, print the applications, and send to the client for signature. Once the application is signed by the client, it is forwarded to IB by the FA, and IB will open the client account once we confirm that all documentation is complete. Funding for the account may then be directly forwarded to IB by wire or check by the client. The FA is responsible for determining the suitability of trading products and strategies for the client.
Multiple client SMAs may be linked to a single FA account. Clients will not have access to the Trader Workstation to enter orders, only the FA will have trading permission. Inside the Trader Workstation, the Financial Advisor will be able to view multiple SMAs and enter trades at the FA level and have them allocated by absolute value or percentage to the individual SMAs.
FAs may charge a wrap fee based on assets, a per trade basis, or a fixed amount. Monthly and daily statements are provided with the Financial Advisorâs name and address prominently displayed at the top.
To open an FA account, an FA must be a Registered Investment Advisor (RIA) or NASD licensed broker within the United States. Financial Advisors must first complete the Financial Advisor Account application process, and then they have the ability to start the application process for client SMAs. The FA application is fully electronic and may be completed at the IB web site.
Will the multiple account in one TWS feature be allowed for us to manage our different Universal account without multiple TWS box ?
i've been on holiday the past three weeks and missed a few calls on the topic thus i don't know. i'm so swamped with back logged e-mails, paperwork, the volatile markets and lack of sleep (try travelling from the US with a 2 kids (1 & 3)) that i can't promise to follow up an learn about these accounts for a couple of days. on the web site (under new customers) try the FA link to send a mail.
let me know if you find something before i do.
Tell me about it. We went on vacation to Aruba last year with our then four year old. She had been complaining that her stomach didn't feel well, and had really bad indegestion.
Just as the plane took off and leveled at about 30K feet, she started farting. These weren't the loud type or anything like that, but MY GOD they were DEADLY NASTY. We suggested that she go to the bathroom, but she said she didn't need to go. Well, the flight was seven hours long, and once every couple of minutes, out came one of these EXTREMELY POTENT farts. It wouldn't have been so bad in the old days, but you know how, in order to save on fuel, they recycle the air in those planes. Well, after about three hours of this, I could swear that the whole plane was infested. People, confused and green from the stench, suggested that we "change her diaper." We explained that she hadn't needed diapers for well over two years now, it was just her tummy. They were not impressed and looked like they were ready to pull the handle on the emergency exit doors at 30K feet and stick their heads out the "window."
Finally, as the plane was aiming to land, she really didn't look good, and right as the pilot decided that he was flying an F16 Eagle fighter plane and not a 737, took a real hard turn. Well, my daughter let out a violent, Exorcist looking, vomit that went all over me and the guy in front of me. We apologized profusely, but now not only did the plane reak of fart, it also reaked of puke.
Well, needless to say, I had a HUGE headache when I got to the hotel. She got way better after puking all over the place and was ready to go into the pool.
It took me a day and half to recover from the whole thing...
i must be really tired, i thought my initial post was a reply to a PM.
as for your flight, mine was a cake walk. i only had a 7 hour car ride followed by a 17 hour flight - the kids didn't sleep much but i'd turn around and do it tomorrow to avoid what you went through.
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