It serves IB and it's more prudent customers. Which part you don't get? You play your risk arb game then pay for it. Simple as that.
OK, I'll bite, which broker in your opinion is better than IB for a large retail account on euro stocks and CFDs ? I hold positions overnight btw, so care very much about the financing rates I agree with D08 IB is rather friendly and convenient to overseas customers, not so much with Volpunter about the eurchf debacle as TWS first rejected my orders than froze several times, it looked to me that although i'd have suffered large losses that day with a functionning Platform, I could have saved around 150k ( total losses that day were several times that amount still).
I've yet to receive a first warning about the exposure fee btw, but from memory in another thread, it is not a marginal cost depending on one's strategy.
For a regular trading hours futures daytrader at IB, what amount per ES contract traded ("initial margin") would one need to not get an exposure fee? Obviously, whatever margin reqs. they post have no meaning in relation to extra charges. Thanks!
Thanks for the explanation, but I cannot see how this would cause an exposure fee in my case. You would need to write my long positions down to zero and my short positions up 67% to match the exposure IB quotes (the longs are ~80% of my margin usage, 74 positions total, none > 11% of account, the shorts are ~20% of margin usage). I have no option positions, only stocks & etfs. I've had positions auto liquidated when my margin fell too low and I understand that, but I do not understand this. It will take a few months, but I will have to move to a broker without such drastic restrictions. Guess it's time to look at Lime or Lightspeed. I need to learn what's available.
Looking to put over 5mil on an account giving access to many markets, at least as many as IB, although I mostly care about stocks, stock options and Cfds but only 2 to 2.5 if giving only access to european markets. I've looked around a bit but can't say i've been very succesful so far, access from Mainland China is important as well as i'm there quite often, and IB is also decent for that.