I've been with IB for a long time, but recently they raising VIX related margin really pissed me off. The ratio for VXX went up insanely to 230%. Under such margin ratio, it's impossible for my strategy to make money. I'm considering switch broker seriously. I usually short VIX ETF, holding short positions for some time. So the shorting interest is important to me. But as I know most brokers using fixed rate for short interest, like 6% or 8% which is much higher than IB's market shorting rates. So I'm looking for a broke that 1 have portfolio margin, 2 using the similar shorting interest rate like IB. I went through some post in this forum. It looks that many people use IB so it does have it advantages. If you know other brokers qualify my requirements or you're representing a broker and want to introduce it to me, please give my some suggestions.
in terms of financing, you wont find anyone cheaper than IB... specially when it comes to borrowing on margin and shorting interest... if there is someone else, I would be curious to know as well.
Recently, on their Trader's Insight they implied against ETFs using VIX products. Check fees for other stocks to make sure this is the case.
Although I am a satisfied customer of IBKR, I would also like to know who are the possible alternative broker to IBKR. As far as I know currently, none can match IBKR when it comes to low commission and product range for international investor. Their best feature is forex conversion at spot rates. Can any other broker match IBKR for international investors? Putting all the eggs in IBKR is not advisable, however wonderful IBKR is. If IBKR pulls off a MF Global, individuals and families will be ruined.
they cant... you have to understand what happen to MFG.. which IBKR is not in a position to have taking place... if anything, IMO... they are rather cautious around their customer risk, not to mention their MM or principal business is all but gone for the most part..
May I ask why is IBKR not in a position to have the same thing happening? I have so far experienced excellent service from IBKR but ... I'm just paranoid.
Maybe not MFG but a PFGBest scenario is possible with any broker. Given that Peterffy has a history of being economical with the truth, as they say, and a number of us have had their staff flat out lie to us, I wouldn't be at all surprised to see a PFGBest scenario come out of IB.