Didnāt know this was a thing. Good to know, thanks!
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A short answer is Yes.
Banks and brokers are depositories of their clientās money. Thatās why there is a compensation fund/scheme if they go bankrupt, if they are unable to return their clientās money, a third-party guarantee and step in to pay the missing money.
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If we think in a more macro view, every client assets are liabilities for the companies, Not only in financial sector.
E.g.:
- Clients paying upfront for a service or product, are client assets that companies are liable.
- Or a client account in some online marketplace (wallet).
- Money held in gaming platforms accounts (wallet).
- Money held in gambling platforms accounts (wallet).
- Utility tokens are also a liability for their issuers.
- Money is a liability for their issuers (Central Banks, or banks in the past). And indirectly the States due to their Central Banks money issuance.
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Does anybody here use IBKR. If so, I was confused by the tax situation (their help seems confusing at times). Do you have to file US tax returns (if you are non US citizen living in UK) or is the US tax situation just in respect to dividends and withholding on dividends?
I would really like T212 to provide options trading but donāt see that coming any time soon. Has anybody used IBKR for options?
Hey @WakeMeUp Iāve used IBKR for options but have only made very limited use of the account. The amounts Iāve been dealing with are well below any tax threshold so all Iāve done is complete the W8-BEN form when I opened the account.
I liked the idea of options and was intending to use the account to sell puts until assigned then sell calls on the stock, repeating the cycle as necessary. Iāve really not been that active at all though.
The positives:
You can trade options.
Thereās a test to pass before you can enable options trading on your account.
You donāt have to trade on margin but you will need the collateral in your account. Iāve counted this as a positive as I didnāt want to go anywhere near a margin account.
The negatives:
I found the interface complicated and slow.
I felt there was a real lack of notifications, whether a trade went through or your order expired.
The pricing is delayed (unless you pay extra) and I donāt know of any free sources for live options prices.
Webull may or may not offer options trading in the future - if you want to open an account with them and youād be willing to use my referral link then Iād happily pass that on to you.
Drop me a message if you have any other questions and will happily try and answer.
Hi @random53 . Thanks for the reply thatās extremely helpful. I thought that I had done a pretty extensive search for platforms that offer options but I missed Webull. Yes please dm me a promotional link. What is your impression of them and their platform.
I really wish T212 would offer options because I think T212 is brilliant and I donāt really want multiple platforms.
I use options alongside long position investing. If you are going to put in a limit buy or sell order you may as well get paid for an order that youād be submitting anyway. That said I make decent profit trading options but it is more based on chart analysis and fundamentals rather than the mathematical probability assessment that many pro traders use.
I agree with you about the IBKR platform. At first glance it looks impressive but it is a fairly tough learning curve and even then some things seem very hard to find (ie a straightforward transaction and cash history). Thus if there is a better alternative to IBKR that would be brilliant but a lot of the platforms are mainly aimed at index and fx options rather than equity options so Iāve struggled to find a good equity option platform. Thanks for the Webull suggestion.
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Have you explored GlobalTrader from IBKR.
I have started exploring it with free account, although still not comparable to Trading212.
Hi @vvsvin I donāt use mobile phone apps for trading/investing. Is GlobalTrader purely their mobile app.
I do agree with you that T212 is excellent