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Originally Posted by bizaro86
I'm not sure what your friend used, but Interactive Brokers is a large public company. Many/most small to medium hedge funds use it, because they have great execution, low commissions, and a powerful trading engine. They aren't a beginner type operation though, the software is very powerful but it's harder to use than a bank brokerage, just because it has so many more choices.
They have unbelievably good margin rates, and way lower commissions than anyone else available in Canada. They also have direct access to international markets (UK, EU, Asia, Australia) that no other broker in Canada offers.
They have transparent availability of borrow for shorting, and disclose the cost of borrow in advance. They also have an automated process for handling corporate actions (tenders, exchange offers, mergers, etc) which is way better than anything else. That combination makes them an easy choice for anyone doing merger arb type stuff. A few times on the phone spending 20 minutes explaining what I needed to the questrade employee (no, tender to the odd lot option...) when I could do it with 3 clicks at IB got me to switch everything.
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That's great and all, but as Slava mentioned, that's something that seems far beyond the requirements and scope of a casual investor. I have no doubt it works great and it seems like it's a fantastic option for you or others like us who have much more experience and understanding with trading, but I stick to my guns in thinking a newbie should never jump straight into something like that. Like I mentioned, I'm sure not all of these platforms are bad, but for sure don't seem like the right platform for someone to begin dabbling in stocks with.
Not trying to be condescending as Slava said, but I stick to my guns in believing your suggestion isn't a good fit for a newbie. It's definitely a good suggestion for some of us who have been trading for many years though.
I think that a IB platform like the one you suggested would be great for some of us who are more comfortable and starting to feel the limitations of the platform we use. It also seems like an easier way to do a Norbert's gambit (not that I or quite a few others have felt the need to do so) or play around with some seriously fun and exciting gambles on the stock market.
Again, not trying to kill your idea or attack you, but it just doesn't seem like a fit for Fire in the Disco who is looking to slowly go from Mutual funds to stocks and ETFs.
Quote:
Originally Posted by Shazam
Buy high, sell low. Chase performance. Always works!
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My friend and I made some money on stock X, you should too! (thereby boosting the value of their already established stake)
Honestly speaking, my gambles are more along the lines of looking at running towards a stock that others are running away from. (ie: unrealistic overreaction causing a stock to plummet vs serious problems with the co)