Hi,
Just thought I'd post my thoughts as someone who's just opened an Interactive Brokers Sharedealing Account.
First of all, if your considering a cheap online stockbroker but have less than the Euro equivelant of $10,000, you're better going with the likes of Firstrade (for US shares) as Interactive Brokers require this as a minimum initial balance - the exception is if you are under 21 in which case the minimum drops to $3,000.
With Interactive Brokers, there is a minimum charge of $10 per month ($3 for those under 25). This does not mean that you have to pay $10 per month on top of their commisions. It just means that, if your commisions for a month are below $10, you will be charged a total of $10 for the month. Therefore, as purchasing up to €4,000 of European shares only costs €4 ($5), you could transfer whatever funds you have for the month over to Interactive Brokers, purchase a number of 2 different European shares and your total commisions for the month would be $10 (or €8). Trading US shares is cheaper at $1 per trade of 200 or less shares.
Regarding the opening of the account, it is relatively straightforward. Everything is done online - including the signatures they require which are just typed. The only other thing you have to do is fax, email or post a copy of two identification documents - I used a passport and a utility bill. A drivers licence and bank statement also works.
Transfering the money to your account is easy - I'm with AIB and just went into the branch (although I think you can do it online) with the sheet I printed out from Interactive Brokers website. It costs €24.95 for a next day transfer or €0.75 for a 3-day transfer. I used the 3-day transfer on Wednesday afternoon at 12.15 and the funds were in my account today.
I plan to purchase US shares as I belive their economy will be first out of this mess. Therefore, the first thing I had to do was to transfer my Euros to US Dollars. Interactive Brokers are one of the best (possibly the best) for this as you can lodge your money to a Euro account and transfer the money to dollars using their very low commission foreign exchange - exchanging $10,000 will cost you $2.50.
This is one of the main reasons I went with Interactive Brokers - I'm not 100% sure but I think that, with Firstrade, you have to lodge your money in USD which would probably involve exchanging the EUR to USD in your bank at their commission rates (and a €20 transfer charge as opposed to €0.75). Then you'd have the $6.95 charge for US shares as opposed to IB's $1 charge.
Another reason is IB's flexibility - you can trade markets all over the world.
Anyway, I've my Euros changed to USD and the US market will be opening shortly so I better get researching. I'll post more info after I've but some shares - I'm already €31 down on my USD change
Just thought I'd post my thoughts as someone who's just opened an Interactive Brokers Sharedealing Account.
First of all, if your considering a cheap online stockbroker but have less than the Euro equivelant of $10,000, you're better going with the likes of Firstrade (for US shares) as Interactive Brokers require this as a minimum initial balance - the exception is if you are under 21 in which case the minimum drops to $3,000.
With Interactive Brokers, there is a minimum charge of $10 per month ($3 for those under 25). This does not mean that you have to pay $10 per month on top of their commisions. It just means that, if your commisions for a month are below $10, you will be charged a total of $10 for the month. Therefore, as purchasing up to €4,000 of European shares only costs €4 ($5), you could transfer whatever funds you have for the month over to Interactive Brokers, purchase a number of 2 different European shares and your total commisions for the month would be $10 (or €8). Trading US shares is cheaper at $1 per trade of 200 or less shares.
Regarding the opening of the account, it is relatively straightforward. Everything is done online - including the signatures they require which are just typed. The only other thing you have to do is fax, email or post a copy of two identification documents - I used a passport and a utility bill. A drivers licence and bank statement also works.
Transfering the money to your account is easy - I'm with AIB and just went into the branch (although I think you can do it online) with the sheet I printed out from Interactive Brokers website. It costs €24.95 for a next day transfer or €0.75 for a 3-day transfer. I used the 3-day transfer on Wednesday afternoon at 12.15 and the funds were in my account today.
I plan to purchase US shares as I belive their economy will be first out of this mess. Therefore, the first thing I had to do was to transfer my Euros to US Dollars. Interactive Brokers are one of the best (possibly the best) for this as you can lodge your money to a Euro account and transfer the money to dollars using their very low commission foreign exchange - exchanging $10,000 will cost you $2.50.
This is one of the main reasons I went with Interactive Brokers - I'm not 100% sure but I think that, with Firstrade, you have to lodge your money in USD which would probably involve exchanging the EUR to USD in your bank at their commission rates (and a €20 transfer charge as opposed to €0.75). Then you'd have the $6.95 charge for US shares as opposed to IB's $1 charge.
Another reason is IB's flexibility - you can trade markets all over the world.
Anyway, I've my Euros changed to USD and the US market will be opening shortly so I better get researching. I'll post more info after I've but some shares - I'm already €31 down on my USD change