As a seasoned trader, International Brokers caught my attention.
First, the reader should understand that I have had or still have accounts with Merrill, OptionsExpress and Interactive Brokers and as an example traded long-dated contango spreads on crude oil futures as well as all stocks, bonds and other commodity futures. Naturally, all of these firms are reputable and first rate. But, I find these firms not flexible in their policies and operations as massive size creates the need to have an infrastructure that is solid and is rules based in their operation.
International Brokers is ONLY for the knowledgeable and experienced trader in my humble opinion. One must understand this is not a large firm but operates with flexibility and is responsive to the individual trader. Whilst their systems are not as fancy as the big brokerage firms, their front-end is low latency and have no trouble in placing any of my trades in the stock and options markets with tight bid/offer spreads. I have found some minor glitches in the operation of their screens but they were fixed very quickly - same hour or day - upon my notifying them.
I opened an account with them recently and have found them to be very professional. Whereas some brokers take days to answer, respond or resolve issues, these guys are personal. Their margin policy is tailored to the individual trader which is the primary reason why I opened an account with them.
Now, one must understand the risks involved with a small firm so read the account application and risk disclosures carefully with any firm but when you have someone like MF Global blow-up, it can happen to any brokerage firm. My recommendation is that you carefully weigh the reputational, operational and risk management policies of the firm. In my case, for being a private firm, they have acted thus far professionally.
The accounting - recording, settling and reporting - of trades is OK. Their processing of my deposits exceeded my expectations. As of today, I have not withdrawn any funds.
Time will tell as I must prove myself as a responsible trader - not a cowboy - and they must prove themselves as a well managed (operational and internal risk management) private brokerage firm.
