Anyone using IB for forex trading?

[a_gnome]

I've been a staunch advocate of OandA for forex trading some time now (narrow spreads, any deal size, fair pricing etc.). However IB's IDEAL PRO forex business model does sound rather appealing: the idea of an ECN for forex with a number of dealers quoting so that you get the best bid and best ask and with the commission on top only 0.2 pips I am wondering about trying them out.

One of the reasons is that I understand that OandA do tend to shade (adjust) their prices according to trades that are done against them. They shade the quotes universally for all clients so that it is not selective quoting (which some dealers do) but I've heard from some OandA traders that this can be rather annoying.

The fact that IB is more of an exchange and that you can in principle be on the right side of the bid-ask spread if someone want to trade against your resting limit order and that there are a number of quoting dealers so you won't get shading, all sounds rather appealing. Has anyone used IB's IDEAL PRO service and if so then how did they find it? Can you do standard things like enter stops etc. and is there anything that one should look out for?

 

[JonnyT]

I use IBs IdealPro.

The spreads can be only 1 pip on EUR and GBP during US open hours.

You have to be wary on stops as they are triggered on the bid being hit twice so remember that when setting them!

You can place stops/limits etc anywhere you want.

Compared to a standard Forex dealer they are like a Rolls Royce.

JonnyT

 

[Tzachi]

Jonny T,

You said "The spreads can be only 1 pip on EUR and GBP during US open hours."

Is it for spot or futures?

Tzachi.

 

[JonnyT]

Spot., IdealPro Forex. As I write the spread on EUR is 1 pip with over $4,000,000 on either side. i.e. you could buy or sell 40 lots without slippage and it is 2 pips on GBP with over $3,000,000 on either side. Please remember this is a free market so the spread does change and isn't constant.

The spread on EUR futures is generally 1 anyway but can also be 1 sometimes on GBP

JonnyT

 

[Tzachi]

Thanks JT.

 

[Tzachi]

JT,

Are they scalping friendly? scalping as for 2-5 min in a trade.

 

[JonnyT]

Scalping is not a problem. IB are a broker not a market maker, You are not trading against IB, they only make on commission not on spread.

JonnyT

 

[Tzachi]

Many thanks JT. Will give it a shot.

 

[Tzachi]

JT,

Whats the comm' they charge per round trip per 1 full lot?

 

[JonnyT]

JT,

Whats the comm' they charge per round trip per 1 full lot?

0.00002 pips. You don't deal in lots you can use any size above $25000. i.e a traditional lot would be $100000 but you could deal in $150000 size or $225000 etc.

Here's a 15 minute bid/ask chart.

JonnyT

 

[Tzachi]

Do they have a demo for the trading platform? can you post a pict' of it?

Is the .00002 comm is per side or r/t?

Tzachi.

 

[JonnyT]

Yes they have a demo:

http://www.interactivebrokers.com/en/software/demo.php?ib_entity=uk

Commissions:

http://www.interactivebrokers.com/en/accounts/fees/commissionForex.php?ib_entity=uk

JonnyT

 

[samuelhogg]

I read somewhere it was quite a lengthy process to open account with them, how did you find it?

I am also interested in opening account with them for both FX and equities but is it true you can only trade in the following http://www.interactivebrokers.com/en/trading/exchanges.php?exch=lse&ib_entity=uk, I have a number of holdings not on the list.

Samuel

 

[zigglewigler]

I read somewhere it was quite a lengthy process to open account with them, how did you find it?

I am also interested in opening account with them for both FX and equities but is it true you can only trade in the following http://www.interactivebrokers.com/en/trading/exchanges.php?exch=lse&ib_entity=uk, I have a number of holdings not on the list.

Samuel

It only took a few days to get the account open. The process looks worse than it actually is. Once you get passed the fussy platform, you'll enjoy the benefits of recently reduced comms. Don't touch the stocks myself, so can't help you with the list.

 

[Leesong]

How does the IB forex stop work. Ie is there a chance the stop will not trigger if a price runs rapidly through the stop point and is not touched twice on a rebound?

Thanks

 

[JonnyT]

No, its two ticks at the stop or worse. So you would likely be filled past the stop.

JonnyT

 

[maysumi]

IB is definitely the one to beat these days - they just dropped some of their rates again beginning in November for stocks. I use several accounts for trading but it seems that every serious trader also has an IB account as well. Their forex ecn is nice too, however, if you're looking for some of the huge leverage offered by some of the smaller shops I don't think you'll get that degree here which is probably a good thing. They're very careful with their risk management.

 

[JTrader]

IB IDEAL Pro Forex Commissions

0.00002% commission = 0.2 pips per side (of the trade), or 0.4 pips per round turn, by the way.

 

[coolTrader]

I use IBs IdealPro.

The spreads can be only 1 pip on EUR and GBP during US open hours.

You have to be wary on stops as they are triggered on the bid being hit twice so remember that when setting them!

You can place stops/limits etc anywhere you want.

Compared to a standard Forex dealer they are like a Rolls Royce.

JonnyT

What interface do you use for your Ib account do you use their software or have you developed one

 

[JonnyT]

I use my own one click App written in Java based on IBs demo's.

i.e. I can buy, sell, exit with a single click. It also keeps a running log og profit / loss for the day and for the current trade.

JonnyT