Live trading with Interactive Brokers

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Live trading with Interactive Brokers

posted Apr 12, 2017

Getting Started

Hi guys,

After experimenting with paper trading via Interactive Brokers, I've decided I want to go live with one of my algorithms. I'm in Europe, so my only options is IB, because Robin Hood is not available here. Anyway, after looking around the IB website, I realised all the plans and commissions are written in such a cumbersome manner that I'm not sure I understand it.

My algo has the following requirements:
- possibility of opening both long and short position
- possibility of closing a position the next day or in the same week (this can happen in the algorithm, but it doesn't necessarily happen every time)

What I didn't get from looking on the IB website is:
- What account or plan do I need to open that satisfies these two important requirements? (without getting warnings from SEC or I don't know)
- What are the commissions involved if I open 1 short position for a given stock? (commision + interest rate + any other commisions)

If you have any tips for the account type, I would gladly take them. Or any other tips for that matter related to live trading with IB.

Thanks!

1 response

I think that these two requirements can be utilised through and ordinary Reg T margin account. Comissions on IB for shorting ordinary stock is very low, to compensate the costs even more you can file some additional pre-borrow stock for shorting forms and also join the stock yield enhancement program. I'm pretty sure you are set to go my friend.
If not, IB will contact you. Don't worry about the SEC coming after you, I'm pretty sure they are very uninterested in people using algorithms as long as there's Martha Stewarts' and William T Walters' out there.
One thing that you have to do however is to set your permissions on account management to be eligible for API usage. This is done in a minute so no worries.
Hope this was of any help.

Best,
Carl Bosson

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.