TraderDude said:
Hello IB,
I am interested in opening an Institutional account with IB. How much will I need as an opening account balance to day trade 1 contract on the FTSE 100 Index Futures please?
All my positions will be closed by the end of the day (no overnight positions).
Also would the account offer paper trading?
Thank you for your time.
FTSE 100 future particulars:
- Unit of trading Contract Valued at £10 per index point (e.g. value £65,000 at 6500.0)
- Quotation Index points (eg 6500.0)
- Minimum price movement (tick size and value) 0.5 (£5.00)
IB Commissions to trade FTSE 100 future:
- £1.70 per side (£3.40 roundtrip); This includes, brokerage, clearing, exchange, technology and regulatory fees.
NOTE: IB provides Direct Access, i.e., you transparently trade in the market and view prices. IB does not get in the middle of the spread. Rather you trade directly on Euronext. Further you can improve the quotes on the screen.
Example of making one tick on the FTSE future:
+£5.00 Trader makes one tick (0.50 = £5.00)
- £3.40 IB roundtrip commissions (£1.70 x 2)
--------------------------
+1.60 Net Profit when using IB i.e., if you make one PLUS tick on the FTSE future
Other costs and/or benefits when using IB:
Nil = To use any of the 30 plus order types we support.
Nil = To use our Paper Trading Account
NIl = IB Chart Trader and Charting package
Nil = Technology
Nil = Technology upgrades
Nil = Support
Nil = To attend our training Workshops in Central London
$10.00 = Minimum brokerage fee per month
Live market data feeds vary per exchange.
£1081 = Min. intraday margin requirement (per contract)
£861 = Min. maintenance margin requirement (per contract)
£3,000 = Minimum deposit to open an account.
Also, IB pay interest on your funds on deposit.
For example,
If your base currency is GBP, we take the LIBOR rate (Benckmark) for that day less 0.5%
4.43% LIBOR as of 29/03/2006
- 0.5%
--------
3.93% = Interest earned (applied to end-of-day settled cash balances) for all GBP funds held at IB => £6,000
We ask all of our prospects to view and compare us to other brokers. That is, if you find a better value we suggest you take it.
If you want more details regarding the above and/or would like assistance in opening an account please call our London office, 020 7 776 7800.