Interactive Brokers is so cheap, where is the catch?

[zhuanquan]

IB is fantastic. I love their trading technology and breadth of products/markets.

all for the low low price of US$1 per trade (minimum)

There is a minimum charge of US$10 per month though, so if your commissions are $3 a month, they will charge another $7 for that month.

[hyom]

Hi, has any fellow value buddies used IB or are using them now?

They seem so cheap compared to what I'm paying.

Interactive Brokers:
Commission: 0.08%
Margin interest charge: ~1.3% (Borrowing money to trade. Up to 2X what you have.)
Source: https://www.interactivebrokers.com/en/in...=schedule2

POEMS:
Commission: 0.18%
Margin: 6%

OCBC:
Commission: 0.18%
Margin: 5%

Am I missing something here?

Thank you very much!

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On further research, it seems that one catch is that Singaporeans cannot trade on SGX

Source: http://forums.hardwarezone.com.sg/money-...471-4.html

May I ask how you get 0.18% commission for iOCBC? I used to be their customer. I remember they charged 0.275%.

Interactive Brokers charge USD10 minimum fee per month as mentioned by zhuanquan. In addition, you also have to pay for market data for different markets. If you are an active trader, IB definitely still saves you money in the long run because of their extremely low commission. Please go to their website to see how cheap are the commission.

Not being able to use IB to buy SGX stocks is one of the occasions when you wish you were a foreigner instead of Singaporean. For Singaporeans who want to invest in US and Hong Kong market, I cannot think of a better broker. Anyone else has a better recommendation?

[quantcall]

Hi, has any fellow value buddies used IB or are using them now?

They seem so cheap compared to what I'm paying.

Interactive Brokers:
Commission: 0.08%
Margin interest charge: ~1.3% (Borrowing money to trade. Up to 2X what you have.)
Source: https://www.interactivebrokers.com/en/in...=schedule2

POEMS:
Commission: 0.18%
Margin: 6%

OCBC:
Commission: 0.18%
Margin: 5%

Am I missing something here?

Thank you very much!

---

On further research, it seems that one catch is that Singaporeans cannot trade on SGX

Source: http://forums.hardwarezone.com.sg/money-...471-4.html

May I ask how you get 0.18% commission for iOCBC? I used to be their customer. I remember they charged 0.275%.

Interactive Brokers charge USD10 minimum fee per month as mentioned by zhuanquan. In addition, you also have to pay for market data for different markets. If you are an active trader, IB definitely still saves you money in the long run because of their extremely low commission. Please go to their website to see how cheap are the commission.

Not being able to use IB to buy SGX stocks is one of the occasions when you wish you were a foreigner instead of Singaporean. For Singaporeans who want to invest in US and Hong Kong market, I cannot think of a better broker. Anyone else has a better recommendation?

with big enough contract size, u get 0.18%, or u trade very often, can call u broker for fee bargain

[andrefre]

Hi Hyom,

If you trade large enough contracts, you can call your brokers to have it reduced. One strategy is to open a Stan Chart account and ask your existing brokers to match their rates.

Also, I've completed the IB application process yesterday (11/9). Will keep everyone updated on it.

May I ask how you get 0.18% commission for iOCBC? I used to be their customer. I remember they charged 0.275%.

[pianist]

I am getting 0.12% for my non-standard chartered trading account...just 0.04% higher than IB's..but get a peace of mind knowing cdp keeps my sg shares

[andrefre]

Hey Pianist, that's really good! Mind me asking which bank?

Also, do you use any margin facility, if so what's your rates on that?

Thanks!

I am getting 0.12% for my non-standard chartered trading account...just 0.04% higher than IB's..but get a peace of mind knowing cdp keeps my sg shares

[pianist]

it was an arranged rate with one of the broker house.
but anyway with e advent of 1 share board lot size trading, I bet commission rate for the whole industry may change soon?