IB new forex spreads

IB could be more competitive with the way it treats interest charges. IB could also be more competitive with it's margining. IB is the only forex broker that I deal with that makes you double margin crossrates. Very uncompetitive. For daytrading they are great. If you do not mind posting 2% margin twice on a spread. They are not bad for larger position trading.

FWIW, just so others know. When putting on a GBP/JPY position. IB's software treats it like two positions. This is theoretically correct for interbank. But no one margins both legs like IB. IB margins two independent trades. 2% for GBP/USD and 2% USD/JPY. This ties up excessive capital since not even the GBP/JPY has the volatility you warrant a 4% margin.
 
Quote from TGM:

IB could be more competitive with the way it treats interest charges. IB could also be more competitive with it's margining. IB is the only forex broker that I deal with that makes you double margin crossrates. Very uncompetitive. For daytrading they are great. If you do not mind posting 2% margin twice on a spread. They are not bad for larger position trading.

FWIW, just so others know. When putting on a GBP/JPY position. IB's software treats it like two positions. This is theoretically correct for interbank. But no one margins both legs like IB. IB margins two independent trades. 2% for GBP/USD and 2% USD/JPY. This ties up excessive capital since not even the GBP/JPY has the volatility you warrant a 4% margin.
More...

Agree, it's not worth trading carry-crosses through IB, although the spreads are very tight now. GBP/USD was a pip-wide for much of the UK session.
 
Quote from riskarb:

Agree, it's not worth trading carry-crosses through IB, although the spreads are very tight now. GBP/USD was a pip-wide for much of the UK session.
More...

Yeah I will say ---their spreads are tight as hell.


Dont get me wrong. I love IB. Everyone should have an account with them! But with a little tweaking they could be about perfect for forex. I have daytraded AUD/USD, USD/JPY, GBP/USD, EUR/USD with IB and have consistently received good fills. Sometimes even great fills. I especially like Aud/USD in the Asian hours.
 
That is the funny thing, if there was just a little more effort expended, IB could run the tables on the market share, but they are on some type of slow developmental pace for some reason...
 
It was stated that Timber Hill, LLC is not involved in IB's IDEAL Pro FX. Then who is the counterparty TMBR?

I know for a fact that Timber Hill has MMs in the tiniest US equities/options - and they are not involved in FX?

I expect a response post within 5 minutes this time not 6...
 
My inquiry on 082306 made at 0545 about Timber Hill, LLC and leaning on orders was responded to and countered within 6 minutes - 0551 AM.

Now I have made a follow up inquiry about Timber Hill, LLC - nothing after days... Must be a difficult question to answer.

Is there anyone else trading currencies with IB that understands the implications of my inquiry? Seems not. Would really love to hear something from another buy-sider on this. thx
 
You must log in or register to reply here.
Back
Top