IBKR's platforms and API are effectively competent, advanced and stable, I won't nudge at all at the ignorable cons that you are referring to @VXP . Also their pricing is discounted enough...
very dangerous as risk gets multiplied - if got no margin, don't trade IMO... Not sustainable, please read and understand risk of ruins...
I consider IBKR, because I have not found a single other reliable broker who can vouch for their own systems responsibly, also it is unfair to say that, as IBKR do not provide MAS, they aren't suitable for day trading - that's outright brazen! MAS is an option only. If you got margin, who is stopping you from day trading with them.
Given their advanced platforms, they are one of the best day-trader friendly brokers worldwide. Find me a broker in India who facilitates Trading API Solutions at no extra cost. If you haven't checked yet, go and check their vast list of free APIs (not meagerly restricted to quotes only) but facilitates complex calculations and lot many other things too.
Anyways, I will give you a professional day trading tip - ability to capture realtime ATM IV is great way to gauge whether Options are pricey or cheap. Rest you know how to encash, right?
Find me a broker who facilitates all these at no extra cost, also keeping stability, accuracy & speed to utmost priority...
BTW statistically sustainable big profits are only possible through positional trades!
True, I agree on that. So, I prefer emails or raising tickets.
People who come from other brokers are already frustrated! IBKR cannot make anyone more frustrated for these little things....
Don't be so harsh on yourself!
They send Margin statement every single day for open positions which is concise enough.
Nothing wrong with Contract Notes as well.
Their Client Portal (back-office) is super user-friendly too!
Contract notes are legal documents. On contrary the details are highly appreciated.
Why don't you export your trades to CSV and do your analysis on your own, the way you want?
Needless to mention, you can also create customized reports directly from the Client Portal.
And there are plenty full of data points for any sort of customization,
This does not end here, you can also go to "Other Reports" to find Reports specific to Indian markets, such as:
Now find me another broker in India, who makes all these customizations possible to this level of depth & accuracy at no additional cost!
Short-term capital gain means any gain in <= 365 days of holding
Long-term capital gain means any gain in > 365 days of holding
Reporting of Intraday Shares trading is speculative and short-term only.
Reporting of F&O trading is treated as business.
Using IBKR reports, you can file your taxes. That would suffice to explain your taxation stance for your trades!
If "P&L" turnover (not transaction-wise turnover) is more than INR 2 Cr in a financial year then you need CA audit. Otherwise, basis income normal IT slabs apply... That's all...
Before any discussion on IBALGO, you need to comprehend two different aspects of IBALGO distinctly:
1) IBKR's Smart Routing
2) Orders with User-defined Settings
What is IBKR's Smart Routing?
For that you need to consider that in EU/UK/US/Canada, Order selling/re-selling is a common practice; wherein small brokers, sub-brokers or broker affiliates sell placed orders to large brokers or agencies who in turn finally pass it on to their Exchanges. They do so to delay normal order execution by few nanoseconds to microseconds - some gain in on DOM (Depth-Of-Market) slippages, others on extra commissions for processing the orders. Hence, their exchanges do order demarcation in order to segregate who is placing which order and whose order (watch Haim Bodek speak on how HFT firms rig orders in US 24:03 - 26:43. In your free time watch the entire documentary from start for more clarity, there's interview of Thomas Peterffy as well).
IB is one of the brokers worldwide who does not propagate order selling, so, for the best interest of their EU/UK/US/Canada clients, they've brought in Smart Routing technology by which they deliver best price execution to them.
In India, we have SEBI who restricts Order selling - no broker is allowed to do so. Here under no circumstance, Exchanges have any authority to demarcate orders. Thusly, IBKR's Smart Routing is inapplicable in India. Our orders are directly routed to the Exchanges.
IBALGO is a combination of Smart Routing and orders with User-defined Settings.
Now coming to orders with User-defined Settings?
IBKR is best, stable and the "only" broker in India who facilitates various helpful plethora of Order Types | Interactive Brokers India Pvt. Ltd.
Choose whichever fits you best, and no smart-routing is required for you.
So does anyone really need IBALGO in India?
No, it is not required.
IBALGO is absolutely irrelevant for our markets. Moreover, IBALGO is more suitable for HFTs in EU/UK/US/Canada!
Indian customers who trade on NSE with IBKR enjoys "Direct Routing".
We need not worry on OMS, because IBKR is co-located at NSE. So, your orders will get placed at the Exchange faster than any other broker, be it a new order or any order modification and with assured stability at all times.
Cheers!
P.S. BTW @VXP you missed the most important con of IBKR India that I previously mentioned in the very first post of this thread:
facility to create pledge and to provide margin against it
for Intraday shares trading
Given their advanced platforms, they are one of the best day-trader friendly brokers worldwide. Find me a broker in India who facilitates Trading API Solutions at no extra cost. If you haven't checked yet, go and check their vast list of free APIs (not meagerly restricted to quotes only) but facilitates complex calculations and lot many other things too.
Anyways, I will give you a professional day trading tip - ability to capture realtime ATM IV is great way to gauge whether Options are pricey or cheap. Rest you know how to encash, right?
Find me a broker who facilitates all these at no extra cost, also keeping stability, accuracy & speed to utmost priority...
BTW statistically sustainable big profits are only possible through positional trades!
reaching their customer service is tough and many times you don't get proper answer
People who come from full service brokers like Kotak, Edelweiss etc will feel very frustrated.
3. The biggest headache I am facing with them is their Reports, Statements & Contract Notes which are geared towards their US customers.
They send Margin statement every single day for open positions which is concise enough.
Nothing wrong with Contract Notes as well.
Their Client Portal (back-office) is super user-friendly too!
If you happen to trade multiple symbols during the day both on intraday as well as delivery basis in large quantities then you can imagine your Ledger will run into thousands of pages and you will have nightmare segregating your short term capital gains on sale of shares on delivery basis from the intraday profits/loss.
Why don't you export your trades to CSV and do your analysis on your own, the way you want?
Needless to mention, you can also create customized reports directly from the Client Portal.
And there are plenty full of data points for any sort of customization,
This does not end here, you can also go to "Other Reports" to find Reports specific to Indian markets, such as:
Now find me another broker in India, who makes all these customizations possible to this level of depth & accuracy at no additional cost!
In India we need to show Intraday Profits/Loss in shares trading as speculative business income
Long-term capital gain means any gain in > 365 days of holding
Reporting of Intraday Shares trading is speculative and short-term only.
Reporting of F&O trading is treated as business.
Using IBKR reports, you can file your taxes. That would suffice to explain your taxation stance for your trades!
If "P&L" turnover (not transaction-wise turnover) is more than INR 2 Cr in a financial year then you need CA audit. Otherwise, basis income normal IT slabs apply... That's all...
advanced Algos known as "IBALGO" are not available to Indian customers
1) IBKR's Smart Routing
2) Orders with User-defined Settings
What is IBKR's Smart Routing?
For that you need to consider that in EU/UK/US/Canada, Order selling/re-selling is a common practice; wherein small brokers, sub-brokers or broker affiliates sell placed orders to large brokers or agencies who in turn finally pass it on to their Exchanges. They do so to delay normal order execution by few nanoseconds to microseconds - some gain in on DOM (Depth-Of-Market) slippages, others on extra commissions for processing the orders. Hence, their exchanges do order demarcation in order to segregate who is placing which order and whose order (watch Haim Bodek speak on how HFT firms rig orders in US 24:03 - 26:43. In your free time watch the entire documentary from start for more clarity, there's interview of Thomas Peterffy as well).
IB is one of the brokers worldwide who does not propagate order selling, so, for the best interest of their EU/UK/US/Canada clients, they've brought in Smart Routing technology by which they deliver best price execution to them.
In India, we have SEBI who restricts Order selling - no broker is allowed to do so. Here under no circumstance, Exchanges have any authority to demarcate orders. Thusly, IBKR's Smart Routing is inapplicable in India. Our orders are directly routed to the Exchanges.
IBALGO is a combination of Smart Routing and orders with User-defined Settings.
Now coming to orders with User-defined Settings?
IBKR is best, stable and the "only" broker in India who facilitates various helpful plethora of Order Types | Interactive Brokers India Pvt. Ltd.
Choose whichever fits you best, and no smart-routing is required for you.
So does anyone really need IBALGO in India?
No, it is not required.
IBALGO is absolutely irrelevant for our markets. Moreover, IBALGO is more suitable for HFTs in EU/UK/US/Canada!
Indian customers who trade on NSE
We need not worry on OMS, because IBKR is co-located at NSE. So, your orders will get placed at the Exchange faster than any other broker, be it a new order or any order modification and with assured stability at all times.
Cheers!
P.S. BTW @VXP you missed the most important con of IBKR India that I previously mentioned in the very first post of this thread:
8) Might require learning curve of at least 30-90 days, if complete novice that might further linger depending on grasping ability. Need to learn their TWS platform which has tons of features along with all sorts of custom flexibility options (you will be challenged to break-out of your comfort zone; but once you do, you shall have beauty to behold)