Broker Accounts

Last modified 10:13, 4 Nov 2012

Broker Accounts

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The Broker Accounts management feature allows you to enter all of your brokers' details, including formulae used to calculate commissions, into a central location from which they can be applied to your analyses and transactions.

To open the Brokers Management window, click the Broker Accounts command from the Portfolios drop-down menu on Your SOFTWARE's toolbar.

The Brokers window will open:

The brokers window floats above the workspace, it can be resized and repositioned using your mouse.

For each Broker the type of instruments, or individual exchanges, and the formula used to calculate commissions can be specified. Once the Broker's details are entered, the commission for each trade for a particular broker can be automatically calculated and included in the portfolio table.

When entering trades into a Portfolio, an individual Broker can be set as the default broker, or you can select one from a drop-down list of Active brokers.

Adding a new Broker

Click Add to create a new tabbed page containing details and settings for each Broker.

Make changes to the Brokers details and click OK to save the changes.

A new tabbed page will be created, enter the Brokerage Name and it will appear on the tab.

Broker Details

Enter the Broker's name in the Brokerage Name text box.

There are also text boxes to enter the Brokerage's Contact Name and telephone Number details.

Instrument Types

For each broker you can identify which security types they deal in, and which exchanges you will use the particular broker to trade on.

When you create a new broker page four five instrument types are available to be set for the Brokerage: Forex, Futures, Indices, Options and Stocks.

To add trading details for each broker in any of these categories, click on the Plus icon icon_plusoff.gif on the left of the table:

Specify Exchange or Futures Root

Each instrument type has different settings. For most instruments a dialog will first open asking if you want to set the Brokerage to handle a specific exchange or instrument.

Select the Exchanges which the brokers operate in:

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If you want this broker to handle all exchanges, click the ALL check box.

Note - Selecting individual exchanges allows you to define different formulae for each exchange, when All is selected the same formula will be applied to all exchanges.

When setting the brokerage details for Futures you can select a broker to handle specific types of futures. For example,select the OJ futures root designator from the drop-down list to assign that broker to trades in Frozen Orange Juice futures:

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Again, an All option is also available to set the Broker as the default for all futures trades.

For Forex and Indices only one Brokerage Type can be set.

Adding Brokerage Formulae

The formula used by each broker to calculate its commission can be defined and later applied to trades by selecting the broker in the Portfolio's Enter Transaction dialog box.

Each broker can also have different formulae for different instruments or exchanges.

Brokers have different levels and methods of calculating commissions. It is recommended that you get a copy of your broker's fees and charges before you start to enter them into this table.

To add commission formulae details, click on the plus icon icon_plusoff.gif in the Forex, Futures, Indices, Options or Stocks row of the table:

The Brokers dialog will open, specify the exchange or futures root (see above), and then click OK to open the first line of the formula definition:

The specified market, or All markets, will appear with the initial price range ($0.00 to Unlimited) and two text boxes: Order Price and % of Order Value

Usually Brokerage commissions are quoted as a base amount up to a certain value of the order and thereafter at a percentage of the value of the order.

Order Price

In the Order Price text box, enter the initial commission amount.

To add additional levels of the commission formula, click on the plus icon icon_plusoff.gif in the row containing the formula (it will also contain a red delete icon icon_delete.gif:

A new row will appear.

% of Order Value / Per Share/Contract

Usually brokerage commissions will become a percentage after the trade exceeds a certain value.

Return to the previous row and enter the value at which the commission formula will change. Click enter and the value at which the new formula applies will be calculated as one cent more than the entered value.

Now enter the % of Order Value that applies to that trading value.

In addition to the base amount, Brokers a can also calculate their commissions on the number of shares, or, in the case of Options and Futures, the number of contracts in the order. For these brokers, one from the drop down list:

Select either % of Order Value or Per Share for Stocks and % of Order Value or Per Contract for Options or Futures.

After selecting the type, enter the broker's percentage or monetary amount into the text box.

Note - % of Order Value is the only option available for Forex and Indices trading.

Additional Commission Levels

In some cases Brokers will have a number of percentage levels, each usually decreasing in percentage as the value of the order increases. You can continue doing this for as many gradations as the broker's formulae has:

In the example, if the broker charges .05% for trades above $2,000,000.01, you could click on the plus icon icon_plusoff.gif in the last row, then change the current Unlimited amount to $2,000,000.00. The new row's range would be inserted for $2,000,000.01 to Unlimited. You would then click on that row's empty % of Order Value space and type 0.05 into the text box.

Default / Active / Delete

Default

Choose which broker you would like to be the default broker appearing in the Broker drop-down list used when entering transactions. Check the Default checkbox at the top to make this broker the default for all transactions.

Active

When a Broker is added, its setting is Active by default. All active Broker's names appear in the drop-down Broker List on the Enter Transaction dialog box.

The Active checkbox can be un-checked. Inactive Broker's are removed from the drop down box in the transactions dialog box, but their details are retained in the tabbed broker page.

They can be reactivated by checking the Active checkbox.

Delete

To remove a Broker from the Broker Management window, select the Broker's tab and click the Delete button.

Deleting a broker will permanently remove the tabbed page from the Brokers dialog, and all information previously entered about that broker will be removed.

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