New IB policy for pro accts...

Discussion in 'Retail Brokers' started by ktm, Apr 3, 2002.

  1. ktm

    ktm

    Some of us have no choice. We are not prop trading with Don or a competitor, we are trading corporate accounts.
     
    #31     Apr 24, 2002
  2. ron2368

    ron2368

    Does anyone know of any other company that requires you to pay exchange fees even if you dont get updating price quotes?

    In some instances I have been required to fill out the usual doc's for the exchanges but never had any fee's.

    If IB says this is their view of how the fees should be charged and not one other company follows the same practice, then WHY? It does not make any sense to me.

    Are they sucking up to the exchanges( recent nasdaq fine), inept, arrogant or just enjoy torturing their customers.
     
    #32     Apr 24, 2002
  3. Why should IB be interested in collecting fees just for fun ? All they have is the cost of administration.
    All the money then goes to the exchange and quite obvious they really must love to get paid twice.
    Send email to the exchanges and complain with SEC, NASD, CFTC, NFA etc.
     
    #33     Apr 24, 2002
  4. Remember overall markets are down therefore member firms have paid less in the form of dues frokm profits to these exchanges. When they make money the enforcing of the rules is lax and you can get away so now that the profit pot is so weak they have to get revenue from everywhere they can. Time are hard all over in the financial sector.

    They squeeze the firm and the firm squeezes you.

    The stage is being set for the next rush for people to start trading as a past time or for a living. when the trillions of dollars come back into the market they will be waiting with fees for everything. So all of you who have no fees enjoy it while it last.

    see you at myoffices
     
    #34     Apr 29, 2002
  5. alanm

    alanm

    Are you trying to say that brokers are paying a percentage of their profits to the exchange, in ways other than commissions and per-share/per-ticket based fees? Can you elaborate?


    I'd like to see a campaign to get the exchanges to change their policy regarding paying multiple times for quotes when you have a backup vendor (or two). It's ridiculous that you, as a single user of the quotes, should have to pay for getting them from multiple routes, almost never at the same time, or because different sources of quotes are broken in different ways. Why should _we_ have to pay for this?
     
    #35     May 1, 2002
  6. Yes, this this is exactly what exchanges do, when they force brokers like IB to collect exchange fees for them: They get the money twice, which is pretty obvious to everyone. Send email to the exchange and ask for a refund. CME told me, there is no refund. Ok, next step will be a complaint with CFTC. Can´t stand such a rip off ...
     
    #36     May 2, 2002
  7. stevet

    stevet

    This double paying for data is ridiculous - but i wonder if it is illegal - as they are saying that if you dont pay it twice - you will not get data - and by extension you could not earn your living

    but as long as the data from both sources is on one computer for one person - they are in the wrong - and this is by their own wording

    must be a lawyer who could sue them and get back past monies and damages

    this is a bit of a fantasy - i know- - but if there was a risk of this happening - they woud soon sort out the problem

    if they are being genuine about earning money on their data for each person, and not allowing multiple uses for more than one trader - you dont have to be a brain surgeon - to realise that each trader needs two feeds - one for their trading platform and one for their graphing - so they should allow two feeds for one licence

    the object of the exchanges should be to promote share ownership and to make their fees from this endeavour - if they can make some money on data as well - thats fine - but it should make sense and not risk alienatiing new people - so they shoud keep the cost of entry down

    if i was Bill Gates talking to the head of Nasdaq, i would be pretty unimpressed by this small mindedness - to find out that people were being alienated in this way and perhaps not buying a Microsoft stock
     
    #37     May 2, 2002
  8. ktm

    ktm

    I hate to keep posting this but I fear the point keeps getting lost. The problem is NOT the data, it is access to the exchanges. I only want/need the data once, through my charting program. IB is denying access to TRADE ON THE EXCHANGE unless pros pay for the data. I don't want IBs data. The infuriating part is that they wish to make me pay ($200 per month) for something I don't need or want (but already have anyway) because they find it "too much trouble" to do things properly.

    We have to make NOT doing so "too much trouble". They will take the path of least resistance. There are too few of us pro accounts to have much pull, but we have to try so we don't continue to get screwed.
     
    #38     May 2, 2002
  9. Wilzo

    Wilzo

    Yes, ktm, I agree. THE issue is not the data subscriptions and the professional designation issues, it is the REQUIREMENT to subscribe to and pay for data through IB just to have the ability to trade through them. I have an email dialogue going on with a vice president at IB and he tells me he understands our concerns and is trying to get the policy changed. He says he will bring it up at the Steering Committee this Friday.

    I think you are right that there are not enough of us professional accounts to give IB any sense of urgency in dealing with this issue. Bottom line: we trade through them in spite of this issue, so the IB package as a whole must be working for us even though this one element of it seems quite unreasonable.

    Let's hope that there is some movement at this week's IB Steering Committee meeting.
     
    #39     May 2, 2002
  10. stevet

    stevet

    ktm and wilzo

    so you actually don't want to see any data on your trading platforms - you just take your trades based on signals from your charts

    personally as a futures trader - I use the charts to get me into position, but i base my actual decision on the data on the TWS as I feel that ultimately it should hopefully be the latest data - so i never fight what the TWS is saying

    i think where they will may still try to screw you is that since your fill price actually eminates from the exchange - so even if you had no streaming data on the TWS - you would still be receiving data in the form of the fill price

    try to keep the concept of each user being allowed - a licence that allows for charting and trading platform - easy to police for the exchange and reasonable and logical

    on TradeStation - which I assume uses one data feed for charting and one data feed for its Trading Platform - do users have to pay two licence fees?
     
    #40     May 2, 2002