QuantConnect Community

Leverage/margins - small quants in trouble?

Back

Hey guys,

most of you probably prefer IB trader as broker when developing algos on quantconnect because of the low order costs.

But even if you have the "PatternDayTradingMarginModel" in place or the 25.000$ to meet the "pattern day trading" requirements - seems like we can't apply leverage/margins anymore using IB trader as broker.

Seems like its only possible for  “Eligible Contract Participants”, meaning those with very large balances in excess of $10M (not retail traders) "

http://www.leaprate.com/2016/08/interactive-brokers-to-discontinue-forex-margin-trading-for-retail-traders/ 

What are your experiences?

Can you guys still trade with leverage/margin on Forex and Shares using quantconnects low cost deal with IB trader?

Thanks

WS

PS: In case it still works for you: do you have code snippets / examples you would be willing to share or illustrate your IB margin/leverage preferences? Thanks for that!

Update Backtest



5 Comments
 
0

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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.

Hi WS: Correct IB doesn't support leverage for forex accounts under $10M anymore. FXCM and Oanda are still both available with very easy account setup with near $0 account minimums.

However, for equities trading you still "only" need $25k to get margin and $10k to open an account. This minimum does make it tricky but there are few brokerages with low trade fees + low account minimums.

2

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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.

Hi Jared,

thank you for the info.

I'm from Europe and would love to have forex and equity trading in the same account.

Oanda and FXCM do forex only. Any brokers you could suggest which cover forex and equities? (good thing is that european brokers don't have the 25k requirements)

Thanks for your consulting!

WS

0

Im not sure about European brokers sorry; please send through some good ones though and we can look into them.

0

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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.

you could use the european equivilants like lynxbroker or captrader (they both use IB as their backend and datasource)
0

IB does offer Forex CFDs that have a small capital requirement.
More Infos here: https://www.interactivebrokers.com/en/index.php?f=1170

Note: Forex CFDs are not available to US, Canada, Hong Kong, Israel and Australia residents

0
Update Backtest



0

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 QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect 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. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.

Loading...

To unlock posting to the community forums please complete at least 30% of Boot Camp.
You can continue your Boot Camp training progress from the terminal. We hope to see you in the community soon!

Discussion Tags