IB new forex spreads

MidKnight · Mar 25, 2005

Quote from roncer:

Yes Ideal Pro.........and don't forget that is

$2.50 per pip minimum plus $10 RT commission.

Hi roncer,

I'm not sure what you are meaning here. On a single 25k worth of currency, it is $2.5/pip maximum (usually, eur/gbp is an exception for some reason)- there are many pairs that will give in the area of $2/pip or lower - these fluctuate as exchange rates change.

MK

ar_stern · Mar 27, 2005

Here are my questions:

-You said forex commission is .00002 of trade size that would mean .2 pip extra per side in addition to the spread. If that is correct it does not seem to match what you have on this web page http://www.interactivebrokers.com/php/generalAccount/commission.php?ib_entity=#currency.
I am looking at numbers for the US.

-Do you have a demo platform with your live prices? Is there one coming? That seems to be common practice amongst forex dealers

Thanks

ar_stern · Mar 27, 2005

looks like you have an incorrect link on this page to forex commisions

http://www.interactivebrokers.com/php/help/faqs/fx.php

Real commision is .2 pip per side if trade size if more than $250000 at one time. Correct?

MidKnight · Mar 27, 2005

Quote from ar_stern:

Here are my questions:

-You said forex commission is .00002 of trade size that would mean .2 pip extra per side in addition to the spread. If that is correct it does not seem to match what you have on this web page http://www.interactivebrokers.com/php/generalAccount/commission.php?ib_entity=#currency.
I am looking at numbers for the US.

-Do you have a demo platform with your live prices? Is there one coming? That seems to be common practice amongst forex dealers

Thanks

You can use the demo from the IB site. It is a java applet that runs 15min delayed quotes. Good way to get a feel for it. I could not figure out the FX quotes as they didn't match anything close the data I had 15mins ago. However, I don't think it matters too much as long as you use their data and trade their data.

MK

ar_stern · Mar 28, 2005

Strange that they can do 2 pip on USDJPY, but they can't do 1 pip on EURUSD yet

MidKnight · Mar 28, 2005

Quote from ar_stern:

Strange that they can do 2 pip on USDJPY, but they can't do 1 pip on EURUSD yet

ar_stern,

It fluctuates. I have seen no pip spreads for several minutes on several pairs at a time - aud/usd, eur/jpy, usd/jpy. It just depends on the present situation I guess. Remember, IB has nothing to do with the spreads presented. The spreads you see are strictly those from their bank market makers. IB just passes the information along.

MK

Remiraz · Mar 28, 2005

The minimum $10 RT comms still kill anyone who doesn't want to do 250k lot or bigger.

(25k lots, 1 pip = $2.50, $10 comms = 4 pips cost T_T)

MidKnight · Mar 28, 2005

Quote from Remiraz:

The minimum $10 RT comms still kill anyone who doesn't want to do 250k lot or bigger.

(25k lots, 1 pip = $2.50, $10 comms = 4 pips cost T_T)

Hi Remiraz,

I think the word kill depends on the traders timeframe. For a scalper, maybe you are right, but not for a swing trader aiming to hold for several days.

MK

roncer · Mar 28, 2005

That commission is a KILLER. They will have to adjust there rates to truly compete.

ar_stern · Mar 28, 2005

I wouldn't call it a killer. If you do more than $250000 lots at one time you would pay .4 pip in commission RT. If the spread is 2 pip that would be effective 2.4 pip spread. That would not be the tights around, but if spread falls to 1 or 0. that makes effective spread 1.4 or .4 and that is competitive especially if you know that they don't have much of a motive to manipulate the quotes. If your time horizon is measured in days, weeks, or months then you have other issues than spreads and cost of the trade to look at