Beware of Interbank FX

H

hillcmr

Interbank FX advertises 2 pips in the EUR/USD. However, they fail to mention that the spread can widen at any time. I've seen it go as wide as 6 pips after a report, and it takes awhile for it to get back to 2 pips. I watch other FX brokers prices at the same time, and they usually stay with their regular spread (3 pips) while Interbank widens their spread to 4 or more. And it doesn't always take a report to make it widen.

When I asked Interbank what was going on, they said "The banks can widen out the spread whenever they deem it necessary...". Really?

Also they only offer a 4 pip spread for the GBP/USD, which is annoying. Many others have gone to 3 pips for that pair.

Once there was a downmove of six pips in the EUR/USD that showed on other FX price sources. But Interbanks' price was stalled - and I was in a short position. I called them, and at first they tried to give a b.s. explanation, but then they checked it out and said, "you should see the price update in a few minutes". A couple of minutes later their price dropped to get back in line with the rest of the world. I should have sold more before the correction, but I didn't know how long it would for them to get their act together.
 
Exactly where on the IBFX website does it say "guaranteed fixed spreads"? If it isn't promised, why would you expect it? If it is promised, you should run like crazy.
 
Hey patrick - I didn't say anything about 'guaranteed fixed spreads', NOR did I say I expected them.

If you would actually read my post, I said that Interbank's spreads widen while other firms spreads remain the same, on the same price move.

And they didn't mention the variability of their spreads, not even in the 'fine print'. The other firms will at least do this.
 
hillcmr,

I heard that Interbank FZ has had some difficult disconnectivity problems where your account gets suddenly "logged out." Have you found that to be a re-occurring issue with them? Thanks!
 
Quote from hillcmr:

Hey patrick - I didn't say anything about 'guaranteed fixed spreads', NOR did I say I expected them.

If you would actually read my post, I said that Interbank's spreads widen while other firms spreads remain the same, on the same price move.

And they didn't mention the variability of their spreads, not even in the 'fine print'. The other firms will at least do this.
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I just want to point out a couple of things:

1) Retail forex is not a real market. It is an artificially created market for the benefit of the bucket shop that created it.

2) Forex is an unregulated market, meaning little things like disclaimers are the least of your worries.

3) Even in real markets, you have variable spreads that are subject to change at any time.

4) IBFX has been criticized many times on these boards regarding customer service and data outages, particularly on the Metatrader 4 platform. You may have better luck with them on MT3, though there are still some (but less) outages there.

5) In my opinion, Oanda is a better bucket shop than IBFX in several areas, though they don't offer Metatrader software.

6) I don't currently have any live accounts with IBFX, though I have traded with them in the past - ending on a sour note, and yet I still may use them in the future, well aware of the many flaws.
 
Quote from hillcmr:

Interbank FX advertises 2 pips in the EUR/USD. However, they fail to mention that the spread can widen at any time. I've seen it go as wide as 6 pips after a report, and it takes awhile for it to get back to 2 pips. I watch other FX brokers prices at the same time, and they usually stay with their regular spread (3 pips) while Interbank widens their spread to 4 or more. And it doesn't always take a report to make it widen.


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sure. They widen the spread and charge you that, meanwhile they execute at a smaller spread and pocket the difference.

here is the problem....

1) how can you prove it?
2) are you willing to incur legal expenses and spend significant time pursuing this matter? Most people aren't.

Just a thought

blackguard
 
Quote from NickBarings:

Patrick,


What flaws did you experience ?
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Data disconnects, primarily on MT4, requotes especially on MT4 which only happen when the market moves in your favor (you get a late fill when it moves against in fast markets), widening spreads at strange times like the thread originator mentioned, extra anti-scalping rules implemented against profitable traders only, poor IT staff and not very good server uptime compared to other brokers.
 
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