Presentation is loading. Please wait.

Presentation is loading. Please wait.

Why is Interactive Brokers Right for Your Online Trading? John Seeberg, Interactive Brokers 203-618-5991 Presented to the US Investor Clubs December 17,

Similar presentations


Presentation on theme: "Why is Interactive Brokers Right for Your Online Trading? John Seeberg, Interactive Brokers 203-618-5991 Presented to the US Investor Clubs December 17,"— Presentation transcript:

1 Why is Interactive Brokers Right for Your Online Trading? John Seeberg, Interactive Brokers Presented to the US Investor Clubs December 17, 2007 Member SIPCSIPC

2 Presentation Outline I will discuss competitive advantages of Interactive Brokers: Highlights b_entity=inst I will discuss competitive advantages of Interactive Brokers: Highlights b_entity=inst Review the trading Platform, TWS (TraderWorkstation), order types, and trading tools Review the trading Platform, TWS (TraderWorkstation), order types, and trading tools Account types, account opening steps, Account Management Account types, account opening steps, Account Management

3 Interactive Brokers Group Fact Sheet 30 th year as a Broker Dealer with equity capital currently around $3 billion Barrons Review of Online Brokers had Interactive Brokers earned the only 5-star rating for cost out of 27 web- and software-based online brokers Interactive Brokers Group (IBKR) is a newly formed public holding company created through an IPO in May 2007 Timber Hill, affiliate of IBG, is the largest Market Maker of Options in the world. Responsible for more than 20% of total US equity derivatives volume. Direct Membership, and access to 70 market centers in 17 countries IB Smart Route and IB Smart Spreads technology is unique in the industry. Solving best execution for Equities and US Options. IB executes over 700,000 trades a day; a 40% rise since December 2006

4 IB Competitive Advantages IB Universal Account IB Universal Account tity=inst tity=inst Global Market Access Global Market Access Low Commissions, competitive financing Low Commissions, competitive financing ity=llc Choose a product Options, Stocks, Futures, etc ity=llc Choose a product Options, Stocks, Futures, etc Technology and Efficiency as a Philosophy Technology and Efficiency as a Philosophy "Create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products and advanced trading tools."

5 IB Universal Account ® in TWS The IB Universal Account allows trading of stocks, options, futures, Forex, bonds, and Exchange Traded Funds (ETFs) all from the same Trader Workstation screen. The IB Universal Account allows trading of stocks, options, futures, Forex, bonds, and Exchange Traded Funds (ETFs) all from the same Trader Workstation screen. Real Time margining of all positions presented with account balances and current margin. Real Time margining of all positions presented with account balances and current margin. Account can operate with a single currency where margin loans are created when foreign products are traded; or multiple currency balances can be held. Account can operate with a single currency where margin loans are created when foreign products are traded; or multiple currency balances can be held.

6 North AmericaNorth America EuropeEurope AsiaAsia IB Global Market Access Stocks, ETFs, Securities Options, Single Stock Futures, Futures, Futures options, Forex

7 North American Stocks Commission

8 US Securities Options Commission

9 US Futures Commission

10 Interest Earned on Long Cash Balances Benchmark= Fed Funds Effective1 (Overnight Rate)4.300

11 Interest Earned on Short Balances Benchmark = Fed Funds Effective1 (Overnight Rate)4.300%

12 Margin Interest Expense

13 IB Order Types Trader Workstation supports over 40 order types limit risk speed execution provide price improvement use discretion time the market simplify the trading process

14 BookTrader: Enter single or multiple orders into the market depth of any market BookTrader: Enter single or multiple orders into the market depth of any market

15 OptionTrader: Option chain display, greek risk factors, option modeler, order entry and management for single contracts, combination orders

16 FXTrader: An advanced Foreign Exchange market order entry tool which offers tight interbank spreads and integration with other asset classes such as forex futures and options

17 ChartTrader: Real-time charts and the ability to enter orders ChartTrader: Real-time charts and the ability to enter orders

18 BasketTrader: Trade basket files or create index based baskets BasketTrader: Trade basket files or create index based baskets DepthTrader: Level II and NYSE Deep Book DepthTrader: Level II and NYSE Deep Book PortfolioTracker: Rebalance a portfolio based on percentages PortfolioTracker: Rebalance a portfolio based on percentages VolTrader: Create orders where the limit price is a volatility VolTrader: Create orders where the limit price is a volatility Market Scanner: Scan the market and filter results Market Scanner: Scan the market and filter results Options Intelligence Report: A daily report provides tables and commentary about the markets expectations of future price movements. Includes seven volatility tables and is updated hourly between noon and the close. Options Intelligence Report: A daily report provides tables and commentary about the markets expectations of future price movements. Includes seven volatility tables and is updated hourly between noon and the close.

19 IB SmartRouting sm US Equities and US Equity Options Sweeps all 6 US Options Exchanges Auto ReRoute SmartSpreads AutoRecovery sm Price Improvement Volatility Orders

20

21 Organization AccountTypes

22 IRA Account Types Traditional. Tax-deferred retirement account to which an individual taxpayer can contribute. A spouse may also contribute, but must open a separate account. Contributions are tax deductible to certain limitations. Earnings are not taxed until you start withdrawing the money. Withdrawals may not generally be made from an IRA prior to reaching age 59 1/2. If withdrawals are made prior to this time, the amount of the withdrawal is subject to a 10% penalty tax in addition to the normal tax liability. Distributions must begin by April 1 of the year following the year in which the employee turns 70. Failure to withdraw the required amount results in a 50% tax penalty. Traditional. Tax-deferred retirement account to which an individual taxpayer can contribute. A spouse may also contribute, but must open a separate account. Contributions are tax deductible to certain limitations. Earnings are not taxed until you start withdrawing the money. Withdrawals may not generally be made from an IRA prior to reaching age 59 1/2. If withdrawals are made prior to this time, the amount of the withdrawal is subject to a 10% penalty tax in addition to the normal tax liability. Distributions must begin by April 1 of the year following the year in which the employee turns 70. Failure to withdraw the required amount results in a 50% tax penalty.

23 IRA Account Types RothRetirement account to which taxpayer can contribute. A spouse may also contribute, but must open a separate account. Contributions are not tax deductible. Earnings are tax-free. Withdrawals of original contribution are tax-free. Investors may continue to contribute to their Roth IRA beyond age 70. RothRetirement account to which taxpayer can contribute. A spouse may also contribute, but must open a separate account. Contributions are not tax deductible. Earnings are tax-free. Withdrawals of original contribution are tax-free. Investors may continue to contribute to their Roth IRA beyond age 70. Simplified Employee Pension (SEP)Plan in which the employee and employer contributes to an IRA. SEPs are used by small employers and self-employed individuals. Each individual employee can set aside a percentage of his or her pre-taxed income into the plan. Contributions are made by the employer (there are no employee contributions). 100% immediate vesting of all plan contributions. Simplified Employee Pension (SEP)Plan in which the employee and employer contributes to an IRA. SEPs are used by small employers and self-employed individuals. Each individual employee can set aside a percentage of his or her pre-taxed income into the plan. Contributions are made by the employer (there are no employee contributions). 100% immediate vesting of all plan contributions.

24 IRA Account Types Direct RolloverUsed by investors when they are changing jobs or retiring. Allows the investor to move assets from a 401K or other employee sponsored retirement plan or an existing IRA without paying taxes or penalties. Employees who contribute, transfer, or rollover IRA assets into this account, may not later transfer this account back to a 401K or other employee sponsored retirement plan. Direct RolloverUsed by investors when they are changing jobs or retiring. Allows the investor to move assets from a 401K or other employee sponsored retirement plan or an existing IRA without paying taxes or penalties. Employees who contribute, transfer, or rollover IRA assets into this account, may not later transfer this account back to a 401K or other employee sponsored retirement plan.

25 IB Account Opening

26

27

28 Thank you, USIC, for sharing Interactive Brokers John Seeberg


Download ppt "Why is Interactive Brokers Right for Your Online Trading? John Seeberg, Interactive Brokers 203-618-5991 Presented to the US Investor Clubs December 17,"

Similar presentations


Ads by Google