Quote from jackflash:
have u been trading them or the sim account? and what size are u trading (if u are trading cash)
i dont know that it necessarily makes them out to be liars but...capital security can be a big deal if the firm is undercap'd. any scoop on that? i could probably take that risk if everything else is solid.
but what about the spike problems mentioned earlier?
I traded them with a simulated account for 1 month. I traded 110 lots round turn for the month taking on 5 lot positions each time. When I would enter trades i would check the price feeds on some other platforms I am using (live accounts) and prices matched up very well, and with the 2 pip spread on the EUR even better with Interbank FX.
I didn't say they were liars, nothing on their website is untrue. The information they have listed under investor protection has nothing to do with that topic, could just be their lack of creating a website because they do have some good info like:
1. Registered Futures Commission Merchant
Interbank FX, LLC, a registered Futures Commission Merchant (FCM), regulated by the Commodity Futures Trading Commission (CFTC). Interbank FX is also a member of the NFA (ID #0326091 NFA web site ). As an FCM and NFA member, Interbank FX must comply with the strictest of accounting and control standards, which include weekly and monthly reporting requirements. Interbank FX must also submit to annual audits from independent accounting firms.
2.Bank Used: (Not a small bank)
Bank: Bank of The West
Bank Address: Wire Department
Monterey Park, CA
http://www.bankofthewest.com/BOW/home
But,.............
3. But excess Capital on hand is only 1.3 M ? Look at some other firms, but this number would only mean something to us if we knew the firms potential risk exposure at 100:1 leverage. Considering the problems they have had with their price feeds this becomes an important issue.
http://www.cftc.gov/tm/tmfcm.htm
4. Something I'm unclear about - Who is the counterparty on the FX transactions ? For instance Tradestation has the following on their website:
GAIN Capital Group, Inc. acts as the counterparty for each forex transaction and as a liquidity provider to clients using its access to the inter-bank market. In doing so, GAIN Capital Group, Inc. assumes the risk associated with each transaction. A portion of GAIN Capital Group, Inc. and TradeStation Securities' profitability may be the difference between the bid and the offer provided to the client, as well as GAIN Capital Group, Inc.'s ability to offset any risk transferred to GAIN Capital Group, Inc. by clients.
I could not find info on Interbank's site. They claim that we are trading direct interbank, which would imply there is no counterparty. In that case their LLC setup may be used at some point ?
5. If your funds are deposited to Bank of West to setup the account then why does the request to withdraw funds go to a fax number in NY, NY (212) when Bank of West has no branches in NY and Interbank FX is located in Utah ? Could be a logical explanation for this, but I don't know of one. Maybe they have a counterparty located in NY, NY ?
In the end I'm going to go with a different broker and setup even though I like their platform with Metatrader and expert attachment. If was only opening a small account I would probably go with them. Good Luck with your decision JF.
Regarding some price spikes. They do happen on their platform. Which If you think about, how could this happen if they were simply transferring the interbank quote to their system. I also have noticed that at times on their system the 30 minute charts will go off on their own direction vs longer term time frames, reach highs or lows not seen on longer term time frames. Almost like the 30 minute chart is its own futures contract with different prices. Could happen I guess if too many traders attached their automated systems to Interbank's 30 min chart. Do your homework and you'll realize that the 2hr bar chart was not left out by accident.
Good Luck with your decision.
