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I just investigated Interactive Brokers, because their margin interest rate (~1.6%) is so much less than my current broker's. As of today, IB's Initial Margin requirement for TSLA is 100% (cash only), but their Maintenance Margin requirement is only 40%, meaning after you buy TSLA shares, 60% of their value can collateralize other purchases. That could be worked around.
Securities with Special Margin Requirements
More disappointing for me is the fact that my Chinese solar stocks (except CSIQ) have both Initial and Maintenance Margin requirements of 100% (cash only, no value as collateral). I guess I won't be switching to IB very soon.
I know many of members here do a lot of market research and crunching numbers. Can anyone advice on a service or a platform that can be used for comprehensive market data research and algorithm testing? I mean not only a technical analysis but also something beyond it. Something that will allow for example to combine price data with SEC insider trading forms and make tests on a retrospective data? It will be even better if it will include some media and social media signals as well. Anyone is aware of such tools or they are available only for hedge funds analysts?
Clprenz
Member
New $0 Trade Brokerage - RobinHood -
Check out the newest disruptive company on the block. They are starting very soon, no options yet but will have them soon.
RobinHood
https://www.robinhood.com/?ref=3LmNTX
Check out the newest disruptive company on the block. They are starting very soon, no options yet but will have them soon.
RobinHood
https://www.robinhood.com/?ref=3LmNTX
yes, this will not work...it's been tried before.
The compliance/service costs will be too great and they can't make enough selling their customer orderflow to generate a profit.
they have good backers (ie. Google) but if this was a stock I would short it or buy some puts.
if anyone tries it out though and uses them I'd be curious to know know what they think and what broker they used prior to using Robinhood
Clprenz
Member
I have no position or opinion of it. I think it's a cool idea. I am skeptical that they can make enough money off margin interest to survive. It does seem possible that
$1 or $2 dollar trades would work very well
i actually think I could start an online brokerage firm myself that does better than what Robinhood is offering believe it or not.
perhaps if TSLA makes it to 1000+ I will retire from my job and start that up
mershaw2001
I'm short the short sellers
Jonathan Hewitt
Active Member
Based on what everyone has posted the last 5 pages it sounds like if one had to pick a "best brokerage" then IB would win. The stocks I have very high margin maintenance requirements with IB so I don't think switching to IB would be a good idea for me. I was thinking of optionshouse. It has a pretty low cost per trade for stock and options (important to me), pretty low margin interest rate (not as good as IB though), and the trading interface looks much better than the brokerage I'm using right now. Maybe they'll even give me the ability to do spreads? (my current brokerage doesn't).
Assuming I go ahead and do the switch, I know I have to allow a week or so for the ACATS to go through. I was wondering how cost basis and everything is going to work? According to optionshouse it looks like it will come through with the ACATS:
I funded my account with an ACAT from another brokerage firm, what happens to my cost basis? | OptionsHouse
This sounds too good to be true, anyone else have personal experience doing this? I really don't want to switch because of the headaches involved but it sounds like I'd be stupid not too. Thanks!
Assuming I go ahead and do the switch, I know I have to allow a week or so for the ACATS to go through. I was wondering how cost basis and everything is going to work? According to optionshouse it looks like it will come through with the ACATS:
I funded my account with an ACAT from another brokerage firm, what happens to my cost basis? | OptionsHouse
This sounds too good to be true, anyone else have personal experience doing this? I really don't want to switch because of the headaches involved but it sounds like I'd be stupid not too. Thanks!
It's now law (as of Jan 1) that they have to maintain and transfer all the cost basis information on Stocks and Options.
sub
Active Member
I'm glad I read through this thread, i'm trying to figure out where to move my account. I have setup an IB account and was looking to test their API, but I was unaware of the margin issue with TSLA. I don't use margin very often and when I do it's only a small percentage that I have available, but I don't want to be constrained. I also want to be able to sell naked, does IB allow this? I've been approved for margin and options but I'm unclear what level that is. I was just getting ready to transfer some money in there this morning. I'm currently with Scottrade and can't wait to leave, to restrictive and expensive, however they do not have margin limits on TSLA that I have ever noticed.
sub
Active Member
I setup an account at TDameritrade this morning. They have API and i'm think no restrictions on TSLA margin? I was really looking forward to using IB, i'll keep my account so I can use it in the future, assuming they won't close it if it goes unfunded.
Jonathan Hewitt
Active Member
For those who use OptionsHouse, does TSLA have a higher maintenance margin then other stocks? I see that if you have a "concentrated account" it does. I can't find a list of specific stocks that have higher maintenance margins, maybe it doesn't exist.
I opened a Just2Trade account as it seemed a good fit for my trades and...ugh, nothing but a pain so far. The account transfer from Ameritrade has taken 10 days so far and still isn't right. They only have the options, not the stocks and cash. Ameritrade locks you out while a transfer is in progress, so I've had no trade access for 1 1/2 weeks.
The UI is abysmally bad. Stupid little things that show a complete lack of attention to detail (I'm a software programmer). Looking at options, they say "Monthly" or "Week3" rather than showing the dates of expiration. The bid/ask values are horribly inaccurate compared to Ameritrade or even Google finance. I guess they show the last one maybe as they look completely off in some cases.
I don't think they got the cost basis stuff transferred over either, not that I can tell.
Not recommended. I'll have to try and unwind those positions and get into yet another broker.
The UI is abysmally bad. Stupid little things that show a complete lack of attention to detail (I'm a software programmer). Looking at options, they say "Monthly" or "Week3" rather than showing the dates of expiration. The bid/ask values are horribly inaccurate compared to Ameritrade or even Google finance. I guess they show the last one maybe as they look completely off in some cases.
I don't think they got the cost basis stuff transferred over either, not that I can tell.
Not recommended. I'll have to try and unwind those positions and get into yet another broker.
I've always used tradeking, I don't use the research tools too much, but when it comes to executing trades for cheap in either PC or smartphone, I have had almost 100% satisfaction. I've also called a couple times and gotten answers to a couple questions within 5 minutes. Only other broker I have used is Fidelity, and comparatively Tradeking's web portal is very minimalist and easy to use. I really like the way they show options tables and don't think I'll be switching anytime soon.
Any problems with margin?
Has anybody had any problems with their brokerage firm raising the margin maintenance requirements with TSLA during times of volatility? I've heard IB has done this in the past and some people have gotten burned (ie., margin calls). I'm planning to create a few new accounts at different brokerages and want to avoid the firms that have stricter/volatile TSLA margin requirements. Please share.
Has anybody had any problems with their brokerage firm raising the margin maintenance requirements with TSLA during times of volatility? I've heard IB has done this in the past and some people have gotten burned (ie., margin calls). I'm planning to create a few new accounts at different brokerages and want to avoid the firms that have stricter/volatile TSLA margin requirements. Please share.
Vanguard gave me a several house calls during the past month (horrible time to exit my positions). I had nearly the same percent drop in my TD Ameritrade account, and got Zero House Calls.
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