Changing Brokers is a Pain, Right? Right?

October 4th, 2006

When I decided to change to Cybertrader, I dreaded it. Changing brokers is such a pain, I thought. You’ve got to fill out a ridiculously long form and probably mail it in. Once your accounts gets set up you have to get a check cut from your old broker. You’re probably going to be out of the market for what, 3-4 days at the least, right? And that’s if there’s no snags – no T’s that you forgot to cross – there’s always something it seems like.

This was my mindset before switching to Cybertrader.

I completed the Cybertrader application last Friday online – it was approved within an hour or two after I hit the submit button. I faxed some paper forms since they need an actual signature for some items on the form. Total time commitment so far: 20 minutes.

Now the hard part: getting my money from my old broker to Cybertrader. I looked into a wire transfer which I knew existed but had the impression that there was a large fee associated with them. I’m cheap, so I’d rather do without these type of fees. It turned out to be $20 which was less than I was expecting. I called up Cybertrader and made sure I had the wire transfer form filled out properly. I also asked them if there was a fee for them receiving a wire transfer. They said there was not and, in fact, if my former broker was charging a fee to do the transfer that they would take care of it by crediting my account the amount of the fee. Wow.

So Monday, I decided, was going to be the day of the switch. I faxed my wire transfer form to my old broker and called them to make sure it was filled out properly. I faxed it around 10AM I think. They said it would “go out” around 10:30AM. So far so good. At this rate I thought the odds were good that my Cybertrader account would be funded and I could trade the next day (Tuesday).

At exactly 2PM the same day (just four hours after I faxed the wire transfer form), I got an email from Cyber:

Congratulations! Your account is now active and ready for trading. Next, you need to login to CyberTrader and then download the CyberTrader Pro® platform.

Unbelievable. This was the biggest non-event I could have imagined.

Now I just need to figure out Cybertrader Alert Templates which seem really powerful.

4 Comments

  1. Bill a.k.a. NO DooDahs Said,

    October 4, 2006 @ 5:34 am

    Congrats! I’ll keep CT in mind if/when I ever get “really active” enough to justify a change in brokers! Glad it went well for you …

  2. Tyro Said,

    October 4, 2006 @ 5:39 am

    I just left Cyber for IB and it took me weeks to deal with fund transfer, authorization and all that mucky-muck. My big problem now is that I have I’ve spent a month writing code that uses IB’s API so I’m pretty much stuck with them. Curiously, one of the first things I did was to write a “clear position alert” to replace a stoploss – that’s one of the greatest things that Cybertrader had and I just can’t believe that IB hasn’t added.

    Luck!

  3. Jeff Said,

    October 4, 2006 @ 6:06 am

    Dave, congrats & welcome!

    I just got a link from a friend of mine at CT which includes some upcoming enhancements (watch out IB!!)

    https://www.cybertrader.com/Clients/Enhancements.aspx

    #4 on the list is going to be very sweet and no doubt CT will have far greater capacity to manage not only open positions but also manage pending orders than anything IB has to offer.

    BTW, Tyro….did you try CT’s API?

  4. Dave Said,

    October 4, 2006 @ 12:19 pm

    @Bill – it certainly went smoother than I’d ever imagine it would’ve been.

    @Tyro – eek. Sounds like you might be stuck for a while.

    @Jeff – thanks for the link. It looks like things get better from here. Thanks!

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