Newbie to IB.

Discussion in 'Retail Brokers' started by Hero2008, Apr 6, 2008.

  1. Hero2008

    Hero2008

    Hi,
    First question
    i like to open an acount with IB to invest for US mkt. I basically only buying US stocks.

    Can someone pls advise which is more cost effective for Bundled vs Unbundled Pricing?
    I am a small player and I will be buying many different stocks (about 30) in small quantity (<50 shares) every month. So is Unbundled pricing a better deal for investor like me?

    Anyone using IB unbundled price for US mkt? It seems that the commission is much much lower if i only purchasing small amount of share each time.. e.g. just 1 share of IBM, the unbundled commission is about $0.0035+0.000011 + $0.00094+$0.03= $0.034451 which is much less than 1 USD

    Second Question...

    Understand that there is a monthly 10USD commission charge and some extra charges for USA live mkt data.
    But is there a extra cost from IB or US exchange for using features like Limit Orders or Good-Til-Canceled (GTC) Orders? Or is there a penality cost if i set my buy or sell price for Limit Orders or Good-Til-Canceled (GTC) Orders too far from the current mkt price?

    third question
    Understand that IB requires Individuals to deposit at least USD 10,000 in order to trade stock.

    My concern is USD has being weaken quite abit so can I deposit 10,000 equivalent using other nation currency e.g. EURO or CAD or YEN or SGD instead of USD to buy/sell stocks?
    Is the proceudre for buy/selling US stocks similar with the above approach. Anything i need to take note?

    fourth question
    What is the procedure for me to withdraw money from IB?

    Thks
     
  2. Ask IB csr these questions directly. Nobody here works for IB for free.
     
  3. Hero2008

    Hero2008

    IB csr stands for ? thks..
     
  4. Interactive Brokers Customer Service Representatives.

     
  5. Hero2008

    Hero2008

    noted with thanks.. Also appreciate if folks here can share with me their experience in using IB.

    Thks Thks
     
  6. lindq

    lindq

    Near the top of the list, or at the top of the list, in all recent surveys of brokers in major financial publications.

    BAD: Their account opening process can be confusing. TWS, the Java trading platform, can seem confusing at first, but it is very powerful and flexible with many order types and fast fills.

    GOOD: Commissions, and the trading platform once you master it.

    Get familiar with the demo platform before going live. Good luck.
     
  7. JackR

    JackR

    If I were you I'd figure how much I planned to trade with in my local currency and then transfer the funds to IB to ensure you have at least US $10K to get the account open. It can go to less than $10K after it is opened. If you plan to trade frequently become familiar with the SEC's "pattern day trading" rule. Search the IB web site for info in that regard. You might want to open your account with US $30K if you plan to trade frequently.

    Once you open your account immediately open a paper trading account. In my opinion it is much better for learning to use the TWS as the quotes are basically real-time. The demo account is not. Paper trading accounts always use bundled rates.

    I think IB has a minimum fee of US $0.70 for unbundled equity orders.

    Be sure you understand how to fund your account and what extra paperwork is required for a non-US citizen account.. I've seen a few complaints here on ET by non-US investors about IB closing their accounts due to paperwork problems.

    If you are in the Far East call the IB Hong Kong office for help.

    Jack
     
  8. Hero2008

    Hero2008

    Hi thks ,
    If i deposit my 10000 using foreign currency instead of USD,
    does IB charge a fee for converting my foreign currency e.g. EURO or SGD to USD when i purchase US stocks.. similarily, when I sell my US stock, do they deposit back directly in USD or do they convert it back to my original currency.. is there a fee to all this conversion?
    Does anyone here has some experience on this. pls share.. thks
     
  9. svrart

    svrart

    IB has csr?


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  10. JackR

    JackR

    #10     Apr 7, 2008