I guess you could say this is OT:
I found this item on an option newsgroup (not part of SI).
Thought it was fascinating, of particular interest to anyone that might currently trade with Interactive Brokers or might be considering same........
BP
> Lawson, just out of curiousity, what was the underlying product
> for the option that you were attempting to trade?
All I can say for sure was that they were stock option positions (I don't
currently do futures or index positions). It seemed like a difficult to win
scenario, so I didn't pursue it.
> BTW: I am not affiliated with Interactive Brokers in anyway at
> the moment, but I am intending on becoming a client in the very
> near future......
As for becoming an IB client. I'll put in my two cents worth:
1) Be prepared to spend a bit of time getting used to the TW interface. If
you are used to the Microsoft Windows "standard" interface, then that
probably will hurt you as much as it helps you. TW doesn't follow the
Windows standard very well, so there is a bit of a leaning curve. I wouldn't
call it intuitive.
2) Once you do get it down, it's actually a pretty good tool. You can map
single key strokes to buy or sell orders, monitor large option chains that
you custom build, and have 33 pages of these custom chains at that. With a
couple of clicks of the mouse, or a single key stroke you can place an
order. As far as it goes, its very useful.
3) There is a bit of a reliability problem. From time to time (once a week
or so, but it really varies. I haven't encountered the problem in a couple
of weeks now) you can't log on with TW. Or if you do log on, you can't
connect to their option database (this prevents you from entering new option
order/tracking entries on your custom pages). Since I connect over a
dedicated T1 line, I highly suspect the problem is on their end. It behaves
as though they may have a bandwidth problem with their servers. Many times
retrying immediately lets you log in, though the system then responds
slowly.
4) When you register with IB, double check all of your info on your
application forms. And then check them again. Make sure you get everything
right the FIRST time. Why? Because there is some information that they
cannot edit once its in their database. That's right folks. If you enter,
for example, your exemption status wrong you can NEVER change it with that
account. Weird huh? I spent about 4 weeks trying and finally had to create
a new account under a slightly different name in order to get the thing
sorted out. It was truly inane. I won't belabor everyone with details on the
loopy advice from their help desk, and Herculean steps I went through to try
to get the info right in their database. Just get it write the first time.
If you do, they are very quick and efficient.
5) You can't beat their prices. That's the reason I went with them in the
first place. And the reason I'm still with them. I like to trade smaller
positions and diversify my trades as much as my limited equity will allow.
Their commissions for small size trades are a dream.
The following things would be nice in their TW (in case anyone over at IB
might be lurking).
- Audio alerts on stock or option prices. Alerts that you have to
acknowledge before they stop beeping. A single beep doesn't do anyone any
good.
- Spend a little time studying the Microsoft standard windows interface
guidelines, and then follow them. It's not that I think good ol' Microsoft
does everything the best way (far from it). But at least it gives everyone a
working base when learning a new application. That's what the standards are
for.
- Improved reliability. It's VERY unnerving when you try to log on to
check your positions and you can't.
- Get at least one person competent at more complex option questions
working at the help desk (no, this isn't a TW request, but its something
they should do). For example, I asked 7 times about their procedures for
handling early assignment on stock options. How they handled them when the
position was covered by another option, or by stock, or if the position was
naked. Do they close the covering equity or option position to cover the
early assigned option, or notify me on what I want them to do, or what? I
have never received a real answer. Sometimes the answer was so off base that
it would have been humorous, if thousands of dollars weren't on the line. If
you ask fairly simple questions about TW or your account, then they
generally get back to you the next day with a good answer. But if you ask
anything slightly advanced, their help desk is, lets just say, less than
helpful.
All that said, I'm still with IB and plan to stay with them. I guess that
says more than all of the above ever could. |
