Is IB in deep poo too?

Discussion in 'Interactive Brokers' started by themickey, Aug 17, 2012.

  1. themickey

    themickey

  2. 1245

    1245

    Worry about your own trading not IB. They don't care about yours.
     
  3. themickey

    themickey

    That's probably right
     
  4. IB's chart looks similar to CME. Is CME in trouble too? Only if they invested in their own stock .... :eek: :eek: :eek: :eek: :eek: :eek:

    http://bigcharts.marketwatch.com/ad...sToggle=false&chartStyleToggle=false&state=12
     
  5. wilddog

    wilddog

    Volumes are down so commissions are down at IB, CME and every other broker and exchange on the street.
     
  6. from the dubious futures brokers. Most every professional I know is moving to IB at least with some funds because they trust them…I trust them and have a lot of accounts there.
     
  7. Catoosa

    Catoosa

    I think the low interest rate squeeze has significantly lowered the earnings of most brokers and clearing firms. The broker and clearing firm reports I have read from prior to 2007 often showed the firms were earning more from their cut of the interest received than from commissions.
     
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  9. Occam

    Occam

    True. Brokers should generate their income off of explicit fees rather than back-door income such as interest on cusomer assets, internalization, and the sale of "muppet" order flow to wholesalers such as Knight.

    A lot of this could be straightened out simply by forcing brokers to pass on all income generated from a customer's assets back to that cusomter, a privlege already enjoyed by those whose accounts earn them exchange rebates, etc. It would actually be safer for brokers in the long run, I think, even if it reduced volume in the near-term (as people would finally see the "true cost" of what they're doing); I'm sure it would have prevented MF Global's collapse, the underlying cause of which was motivated directly by this dropoff in interest income.
     
    #10     Aug 18, 2012