Connect with us

Brokers

Global Stock and Cross-Asset-Class Broker Recommendation: Interactive Brokers

Published

on

Pros

  • Great global asset coverage and availability (100+ markets)
  • Very low fees and margin rates
  • No proprietary trading, no risk of default
  • Good mobile offering and versatile trading platforms
  • API integration, automated trading options,

Cons

  • $10,000 minimum capital ($5000 for US IRA accounts)
  • User Interface not the easiest
  • Customer support issues
  • No social or copy trading
  • Relatively low leverage allowance
  • Large one-time orders are cheaper elsewhere

Tradable Assets

There is no broker matching the offering of IB, with stocks (24 countries), bonds, indices, forex, options, futures, mutual funds, warrants, turbos and everything else in the traditional asset classes being available. In one platform with a searchable quote list, you can access all products very quickly. Also, ever since (10+ years) I have been following the company, they have been constantalbeitbeit slowly) adding new markets and products.

Recommendation

We recommend Interactive Brokers for all active, cross asset class traders who are willing to spend the time to set up the trading platform and customize the User Interface. The service is available in most countries of the world, with access to a wealth of asset classes and a wide range of countries. Prices in every dimension are very low, although they do charge a $10 “inactivity fee”. That might seem steep, but if you hold any margin positions, the very low margin rates will make IB the cheapest choice in no time for investors with large value positions as well.  Compared to retail forex (IB offers ICN forex trading) and some full-service stock brokers trading fees are simply stunning. This means that with retail brokers you might be paying several times more for margin positions than with IB, but other discount brokers are also trailing the company.

Beginners and investors with a lower budget should look elsewhere, although we have to note that having a UI that is not optimized to “urge” trading is not a definite disadvantage. Sadly it is true that with brokers as well that if you are not wealthy you cannot afford a bad product or service.Customer support could be erratic, but your money is safe with IB and usually, all issues are solved; just you need to push them a little bit.

Availability

IB accepts clients from practically every country in the world, and although applying for an account is not as easy as with some other brokers, active traders will make the hassle up very quickly with the low fees. Want to invest in less known markets and assets? You have it all here, with full access to all major global marketplaces.

Trading Platforms

The Trader WorkStation (TWS) is the main desktop platform of the broker, with great versatility, lots of order types quick access to all markets and asset classes, but with a relatively high level of resource need, and a steep learning curve and way too many options for the beginner trader.

Mobile trading is great and reliable on all platforms, although charting is not perfect and some functions are dearly missed from the desktop version. There is also the fully functional WebTrader for the occasional on-the-road trade. Through its great API you are able to connect all kinds of trading and charting software, algorithmic systems, or other third-party applications. Two-factor authentication is available on all platforms, and safety functions are generally at a high level across the applications.

There is also a very helpful and perfectly functional Simulated Trading account, where you can get to know the user interface the different order types (with even simulated deep order book trading) and practice your strategies without limitations.

Other Tools

Analysis tools are great, with only some special ed (TradeStation, Optionshouse) brokers beating the company in some

Where IB is lacking, is the in-house research tools and the access to mutual funds and other investment options. Don’t get us wrong, those are all there, but other (non-discount) brokers make it a lot easier to access information and invest in third-party funds. Again, if you have your information sources or you are willing to pay up for an outside provider- which a serious investor would do eventually- these are non-issues. That said, it is fair to say that the system is not geared towards beginners.

Final Words

With all the limitations and issues in mind, Interactive Brokers is not for everyone, but above an intermediate level, and for a global approach it’s hard to find a better choice. With over 40 years of history, the company is here to stay, and as it doesn’t conduct trading on its own account, your funds are secure, and “blowing up” is not a realistic risk for the firm.

What’s your experience with the company? Did you have any issues with the service or did we miss something vital? Let us know in the comment section. We will focus on forex-brokers int he next part of our review series.

Featured images form Shutterstock and company website.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 380 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Brokers

TD Ameritrade Backs Regulated Cryptocurrency Exchange

Published

on

One of America’s largest brokerage firms is betting big on the continued growth of cryptocurrencies. To that end, TD Ameritrade has announced it is backing a new platform that gives retail traders the ability to access both bitcoin spot and bitcoin futures.

TD Ameritrade Enters Crypto

The U.S. brokerage firm, which controls $1.2 trillion in assets, has made a strategic investment in ErisX, a regulated crypto exchange offering access to crypto spot and futures markets. According to CNBC, which broke the news on Wednesday, the exchange will be fully regulated by the U.S. Commodity Futures Trading Commission (CFTC). However, certain product offerings are pending approval.

ErisX will be backed by Virtu Capital, which provides high-speed trading infrastructure.

In addition to bitcoin and bitcoin futures, the new platform will allow traders to purchase Ethereum, bitcoin cash and Litecoin at spot prices. The narrow selection of cryptocurrencies mirrors that of Coinbase, a San Francisco-based exchange with more than 13 million users. Although Coinbase offers one additional cryptocurrency – Ethereum Classic – and is planning to add more, it only supports spot trading and not futures.

“It’s a young product in fast moving ecosystem, and while bitcoin may not have the same demand as it did in December, there is still demand nonetheless,” JB Mackenzie, managing director, told CNBC.

“We listened to our customers – what we continued to hear was that they wanted access to trade digital currency products.”

Crypto Markets are Here to Stay

TD Ameritrade’s crypto venture is the latest in a series of efforts by traditional players to establish a foothold in the enigmatic sector. Banks, hedge funds and stock exchange operators are all pivoting toward cryptocurrencies and blockchain despite the yearlong downtrend in prices.

The latest effort by TD Ameritrade is especially important given the broker’s focus on retail traders.  Until now, it has been assumed that the next great crypto bull market will be driven by institutional capital. This belief isn’t unfounded; after all, retail interest in crypto has dwindled over the past six months as the novelty of the market wore off. But a platform like ErisX could attract an entirely different segment to cryptocurrency: experienced stock and ETF traders looking to diversify into other markets.

As CNBC noted in its report, TD Ameritrade currently has about 11 million users who collectively execute 780,000 trades per day. As ErisX is rolled out, investors should keep tabs on whether existing Ameritrade users will be provided seamless access to the new platform.

Developments like ErisX give long-term holders of cryptocurrencies more reason to be optimistic about the future. With the exception of Tom Lee and a few others, most market participants have come to terms with the idea that an imminent bull market is not in the cards. In the absence of eye-popping returns, investors can still take solace in the fact that crypto adoption is growing in all the right circles.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Brokers

Coinbase Closer to SEC Registration Following Purchase of Keystone Capital

Published

on

Digital currency exchange Coinbase is “on track” to obtain federal securities registration after it acquired Keystone Capital for an undisclosed amount. For all intents and purposes, the acquisition could allow Coinbase to operate as a broker-dealer in the fast-growing market for initial coin offerings (ICOs).

 Coinbase Acquires Keystone

In a statement released late on Wednesday, Coinbase announced it had obtained a broker-deal license, an alternative trading system (ATS) and a registered investment advisor (RIA) designation through its acquisition of California-based Keystone Capital Corp. In doing so, the exchange moves one step closer to offering blockchain-based assets such as cryptocurrencies and security tokens.

The licenses are still pending regulatory approval of the Keystone sale. Once cleared, Coinbase intends to seek approval from the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to begin offering security tokens.

“There are now many types of blockchain-based digital assets, from cryptocurrencies to security tokens to collectibles,” wrote Asiff Hirji, Coinbase’s President and COO. “In the United States, some of these assets will be subject to SEC oversight. With this in mind, securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets.”

Quest for Institutional Capital

The acquisition of Keystone comes less than a month after Coinbase launched a suite of products targeting institutional investors. By introducing Coinbase Custody, Coinbase Markets, Coinbase Prime and The Coinbase Institutional Coverage Group, the exchange aims to unlock as much as $10 billion in institutional capital currently sitting on the sidelines.

Coinbase believes that the future of cryptocurrency will be driven by institutional capital compared with the first bull market that was largely attributed to retail traders. This is certainly consistent with the seismic shift toward blockchain technology currently underway on Wall Street and Main Street.

Although mainstream crypto adoption is still a long ways away, major institutions like Goldman Sachs have already announced they are entering the market. Several others, such as Barclays and Deutsche Borse, are still investigating consumer appetite for blockchain-based products.

Efforts to bring bitcoin under the umbrella of exchange-traded funds (EFTs) are also ongoing. On Tuesday, VanEck submitted another application to the SEC for a new bitcoin-linked ETP that is backed by actual units of the virtual currency. About a dozen or so similar applications have been rejected or withdrawn since January.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Brokers

Coinbase Instant Buy Program May Be Fueling Bitcoin’s Meteoric Rise

Published

on

As bitcoin’s market value surges past $92 billion, a key announcement by cryptocurrency exchange Coinbase could be a driving factor behind the dramatic rally.

Coinbase Announces Instant Buy Program

Coinbase, the world’s most funded digital currency exchange, announced Thursday it is enabling U.S. investors to make instant purchases of up to $25,000 worth of bitcoin, Ethereum and Litecoin. Previously, users had to wait several days to receive their coins.

“Reducing the time to receive digital currency has been a highly requested feature and we are pleased to provide this improved experience for our customers,” David Farmer, the director of Coinbase Communications, said in a Thursday blog.

The decision to go instant was also announced by Coinbase co-founder and CEO Brian Armstrong via Twitter.

The San Francisco-based Coinbase was founded in 2012, and has more than 11 million users. It is widely considered to be one of the most accessible trading platforms enabling widespread access to the digital currency market.

Bitcoin prices peaked above $5,800 Friday, with prices fluctuating significantly before the Coinbase rollout.

IMF’s Lagarde Comments on Cryptocurrency Revolution

The International Monetary Fund’s Christine Lagarde is closely monitoring the bitcoin market, and says the global lending institution should play a role in regulating the fin-tech industry going forward. The Managing Director of the Washington-based organization said financial institutions must carefully evaluate and understand the digital currency sphere without jumping to conclusions.

“I think we should be aware of not categorizing anything that has to do with digital currencies in those speculation, ponzi-like schemes,” she said, in reference to Jamie Dimon‘s assertion that cryptocurrency is equivalent to “fraud.”

“It’s a lot more than that as well,” she added.

Lagarde said that it was possible for the IMF to develop its own cryptocurrency at some point in the future. The protocol may operate in a similar fashion to the IMF’s Special Drawing Right (SDR), an international reserve asset.

Featured image courtesy of Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending