The below graphic is one reason we launched two private funds over 6 months ago. I couldn’t offer a leveraged version of our tactical system in good conscience with most brokers. The only one that is even remotely reasonable is Interactive Brokers (we don’t use them currently). Criminal!
Graphic from IB’s website:
This really is shocking – especially given the day and age of free money (0% interest rate)
Lucky I use IB – but I am surprised why you do not use them?
I find them pretty good (at least for all the basic stuff)
we use JPM and Goldman for leverage. we don't like offering the leveraged funds to retail – i'd much rather them use the global rotation.
told you
Fair enough – I should have thought that a big fund like yours (I presume) has access to prime brokers…
And I agree that the global rotation is so good and simple that it is probably great for retail!
Interactive Brokers has excellent prime brokerage services. We've used them for our fund since 2005. They are a great brokerage firm with an excellent credit rating and practices. Executions, costs, technology, statements, reports, risk tools, etc. all A+.
Eric – thanks for the feedback on IB. Reassures me that I have chosen a retail platform that seems to be scalable for managin large funds (hopefully where I'll be at some point
You can get a good overview of the brokers fees and commissions here.
http://finviz.com/store/stock-brokers.ashx
The new Barclays ETNs offer leverage for 0.75% plus T-Bills. Opening position is just the share price of course. I think this may prove to be a fairly big deal.
https://ecommerce.barcap.com/investorsolutions/...
A warning regarding some dangers of using the Barclays ETN+
http://bit.ly/4N1Pb1
A warning regarding some dangers of using the Barclays ETN+
http://bit.ly/4N1Pb1
[...] like (and predatory) in my opinion. The margin rates offered by most brokers are near criminal when compared to a consistently fair broker like IB (unbiased, we don’t use them). (HT: [...]