myBroker

MyBroker is a trading name of Options Direct (Europe) Ltd. As is implied by the latter name it is particularly suitable for investors wishing to deal online in options as well as equities, although this in no way compromises the service for those intending to deal in
equities only.

I have been using the myBroker service only since August 2000 having first opened an account with Options Direct and thereafter installed the myBroker ...
...equities I was attracted to myBroker largely on the basis of their standard advertisement which reads “Options Direct MyBroker system provides the only live and dynamic trading facility for equities and traded options”. Having installed the software I discovered that I could purchase options but not write them. This revelation was a threefold di
sappointment in that: (i) the facility to write options was a major reason for choosing myBroker; ... more

MyBroker is a trading name of Options Direct (Europe) Ltd. As is implied by the latter name it is particularly suitable for investors wishing to deal online in options as well as equities, although this in no way compromises the service for those intending to deal in
equities only.

I have been using the myBroker service only since August 2000 having first opened an account with Options Direct and thereafter installed the myBroker software from CD Rom, although it can also be downloaded directly from the website.

My experiences to date have been both positive and negative, but I am pleased to say the former far outweigh the latter. I would first of all say that any telephone business, whether dealings or enquiries, is handled with courtesy and efficiency. The dealers are eager to assist and will even take time to talk you through the software if your telephone is within easy reach of your pc.

The software itself is highly flexible, offering a wide range of customisable options. The system revolves around a screen which you develop yourself by entering the EPIC codes of the 20 companies you wish to track. You may of course include more than 20 companies, but this involves selecting a higher level of service for which monthly fees are payable. Once you have chosen your companies essential details such as current price, bid and ask price, price change etc. will appear as standard; you can then customise the screen by choosing from a wide range of additional details for each selection – for example, annual high/low, dividend date, eps, yield etc.

Right clicking any of your selections brings up a drop down menu which gives access to an extensive array of further information or services relative to the company selected – for example, basic charting, today’s news, past news, call and put option prices, third party information (eg. earnings estimates), and direct transfer to the trading screen should you wish to deal in the particular share you have clicked. Many of the “drop down” services are free, whereas others have to be paid for.

The top half of the main screen contains: (a) a toolbar giving access to all the essential features of the package; (b) a scrollbar on which all live trades in the shares of your chosen companies scroll across the screen from right to left – green for purchases, red for sales, each one showing the volume traded and effect on the share price; it is instructive and entertaining to spend 15 or 20 minutes simply watching the trades pass across the scrollbar – I find this gives a general feel for market sentiment towards the share and the general direction of current movements; (c) a schedule of incoming news headlines from sources such as Comtex; the story can be read by clicking on the appropriate headline.

As far as fees are concerned, the so-called “silver” programme which is described above, is essentially free subject to a £10 inactivity fee if no trade has been placed over the
course of one month. Even this can be avoided by switching from the live fee facility to the “basic” service. Higher levels of service called “gold” and “platinum”, which offer additional features and services, are available on payment of a set fee. For example,

access to the AIQ Trading Expert Pro Version 5.0 costs $59 a month (yes, the parent company is American). Commission fees are a flat £25 for UK equities, $15.95 for US shares (you can trade on markets other than London), and £15 for UK options.

Turning now to the downside, I have experienced a few negative features. Being interested in writing (ie. selling) options as well as trading in equities I was attracted to myBroker largely on the basis of their standard advertisement which reads “Options Direct MyBroker system provides the only live and dynamic trading facility for equities and traded options”. Having installed the software I discovered that I could purchase options but not write them. This revelation was a threefold di
sappointment in that: (i) the facility to write options was a major reason for choosing myBroker; (ii) since the software cannot handle these transactions the business has to be placed by phone which involves a higher commission fee (£22.50 as opposed to £15); (iii) if business if placed by phone rather than online, the user has to pay the monthly inactivity fee of £10 for live feeds unless at least one transaction is conducted online as well. However myBroker did inform me that they were currently developing software which would facilitate the online writing of options sometime in the future – they didn’t know when.

The software itself is flexible and of high quality, subject to the occasional minor irritation. When placing an equity transaction, a reminder box comes onscreen asking the user to “complete the condition box” – an example of a condition is “fill or kill”. However there is in fact no condition box on the screen. By experimentation I found that I needed to switch from the equities screen to the options screen, complete the condition box on the latter, then toggle back to the equities screen and complete the remaining boxes. All a bit tedious, but not a major problem.

Finally, I was incorrectly charged after my first full month’s usage. As previously indicated the “silver” plan is free (subject to a possible monthly inactivity fee) whereas $48 (about £35) was incorrectly debited to my credit card. On bringing the overcharge to the attention of myBroker they e-mailed me to advise that the $48 would be reimbursed – they did not say how or when. Nonetheless I am uncomfortable about brokers committing charging errors, especially since it leaves one with the fear that the error could be repeated.

Despite the foregoing reservations I have found myBroker to be an imaginative, flexible and good-value package which has the potential to become one of the very best once the software has been further developed and a few minor glitches rectified. 

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