I started my trading/investing activities about one year ago. I registered on Scottrade because they provide a relatively cheap way of trading common stocks, and because the initial deposit could be as little at $500. However, it turned out that even if I anticipate a trend correctly, the $14 commision (to enter and exit a trade) all but annihilated my profits. I am looking to trade, not invest. That is why I started looking for another trading platform, and naturally I considered Interactive Brokers. However, in online-broker reviews on Elite Trader I've read the following argument: a lot of amateurs, people who do not know how to trade and who only lose money doing it, people like that would deposit $5,000 into IB and get none out. Since there is a constant supply of "suckers," IB stays in business still. My question is for people who have been trading on IB extensively: is it possible at all to make profit using that platform? I'm looking specifically for a case of an individual who has put in $5,000 and has already gotten out more than $5,000. Basically it boils down to this: if IB are somewhat unreliable but offer amazingly cheap prices and do not outright cheat their every customer, I would switch to IB. But if there has not been an individual who actually trades on IB successfully, I would stick to Scottrade.
From your post I would say ...PLEASE DON'T GO WITH IB! They have to put up with far too much crap already. There is a reason their motto is "The Professional's Gateway to the World's Markets". Regards and good trading. edit: also, it'll cost you $10K to open an account now
IB is very professional. They even have one of the fastest growing Prime Brokerage business on the street. You should definatly stay away from them.
If you can't get in and out with a profit on a $14 commission you won't make money with IB either. You should stay where you are. Also if any of your friends have spent less than 5 years learning about brokerages and trading can you keep them away from IB too. Note that you'll get no interest on your 10k either ... IB are bad to the bone.
Based on your post, I strongly suggest that you do NOT open an account with IB. They are not the broker for you.
I've been with IB for 5+ years. Stay away from them. And I'd like to thank all senior citizens of ET.
IB has plenty of credibility, you have zero. There is no way IB can be making money off of pikers with only 5K or 10K in their accounts. At year end 2007 IB had 95,000 customer accounts with $8.8 billion in equity - an average of $93,000 per account. Please do IB customers a favor and stay away from IB. Go bother Tradestation as they need customers like you.
When it comes to issues of substance, you will get no help from these selfish posters on ET. If they do give you "advice," do the opposite. If they say "stay away from IB," you should join IB. If they say "join this broker," stay away from it.