Just wondering how IB compares with Saxobank, CMC and some of the other big FOREX banks. Thanks!
Anyone Using IB for FOREX?
- Thread starter BobbyMurcerFan
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IB isn't designed to be an FX dealer. It provides tighter rates than the banks in order to facilitate currency transactions to trade or move profits/losses from the different markets. Naturally it can also be used to place funds in the currency of your choice. You can also split the spreads and hope another customer meets you half way.
If you want to actively trade currencies, consider the currency futures which are very tight and very liquid (also cheaper commissions).
As for IB spreads on currencies, here are some current markets (all 200K up)
EUR .0946 at .0956
CAD 1.4713 at 1.4740
CHF 1.3280 at 1.3297
GBP .6217 at .6225
If you want to actively trade currencies, consider the currency futures which are very tight and very liquid (also cheaper commissions).
As for IB spreads on currencies, here are some current markets (all 200K up)
EUR .0946 at .0956
CAD 1.4713 at 1.4740
CHF 1.3280 at 1.3297
GBP .6217 at .6225
They are very bad. Their spreads are large and they have the cheek to charge commision. Go with any other specialised FX broker, if your in the UK CMC Forex and IG Forex are very good reputable firms, smaller spreds and no commision. Oanda is also apparently very good for the smaller trader.
And how does IB do with cross-rates? Thanks Def.
I'm in the US, any other recommedations? Thanks.
Here are IG Forex spreads for the majors:
EUR/USD 1.1049 - 1.1053
USD/JPY 116.94 - 116.98
USD/CHF 1.3274 - 1.3278
GBP/USD 1.6066 - 1.6070
EUR/USD 1.1049 - 1.1053
USD/JPY 116.94 - 116.98
USD/CHF 1.3274 - 1.3278
GBP/USD 1.6066 - 1.6070
Just to be sure I understand you, IB good with trading currency futures but not really with trading the spot. I that makes sense being that IB is not a bank and realistically couldn't make a market in currencies.
I am a little unsure about what you said about IB spreads being tighter than the banks'.
I am a little unsure about what you said about IB spreads being tighter than the banks'.
Thanks much!
It's only to convert cash into other currencies but it can be a way to learn forex trading which is very difficult. I would not attempt any of the short term strategies you may use in equities.
IMO there are many hidden risks of trading on a broker platform like those provided by most FX brokers, these are not true markets. Here is what can potentially happen on IDEAL for ex:
US markets are closed, market is 1.1035/1.1115 , interbank is 80/85, spread would usually be tighter but you try to get an execution now because you think it could move big later in the day. So you offer 5,000 euros at 1.1090. Someone (IB?) buys 10 euros from you! Then they offer 10,000 at 1.1088. You just paid $2.95 to sell 10 euros and you have to modify your order if you want to have a chance of getting an execution! You could end up doing this several times before you are done with your order and IB pockets the commission each time.
IMO there are many hidden risks of trading on a broker platform like those provided by most FX brokers, these are not true markets. Here is what can potentially happen on IDEAL for ex:
US markets are closed, market is 1.1035/1.1115 , interbank is 80/85, spread would usually be tighter but you try to get an execution now because you think it could move big later in the day. So you offer 5,000 euros at 1.1090. Someone (IB?) buys 10 euros from you! Then they offer 10,000 at 1.1088. You just paid $2.95 to sell 10 euros and you have to modify your order if you want to have a chance of getting an execution! You could end up doing this several times before you are done with your order and IB pockets the commission each time.