IB vs. Oanda

The margin thing is even more skewed when comparing IB vs. Oanda, because at IB you automatically get a margin call at the same 50:1 (majors) or 25:1 (crosses). No breathing room at all.

By contrast, Oanda has 50:1 leverage (all 38 pairs + spot gold and silver), but 100:1 before you get a margin call. Lots of breathing room.

Ironically, Oanda itself is not exactly competitive in terms of margin, vs. everyone else at 100:1 and up. But IB is 2 to 4 times worse still than Oanda, in practice.

IB isn't out of line when it comes to intraday and overnight leverage on currency futures, which have exactly the same risk profile as spot, so what could be the reason? Can't be the liquidity providers, who are known to work with other ECNs at 100:1.
 
The initial and maintenance margin being the same at IB is indeed quite bizarre. I never got a conclusive answer as to why that is the case. Basically you'd never want to use 50:1 (or 25:1 on crosses) because as you mentioned, you'd get a margin call immediately unless the trade went directly in your favor.

That's also why I've stuck primarily to FX futures with them. They're mostly 80:1 with breathing room up to 100:1. They have their drawbacks too of course (no crosses, 5pm-6pm blackout, limited liquidity outside the majors, etc).

I will soon be switching to Currenex/Hotspot FXi with margins from 50:1 to 100:1 and commissions only slightly higher at $30/MM (well worth it imo).
 
Quote from Trader KGB:

The initial and maintenance margin being the same at IB is indeed quite bizarre. I never got a conclusive answer as to why that is the case. Basically you'd never want to use 50:1 (or 25:1 on crosses) because as you mentioned, you'd get a margin call immediately unless the trade went directly in your favor.

That's also why I've stuck primarily to FX futures with them. They're mostly 80:1 with breathing room up to 100:1. They have their drawbacks too of course (no crosses, 5pm-6pm blackout, limited liquidity outside the majors, etc).

I will soon be switching to Currenex/Hotspot FXi with margins from 50:1 to 100:1 and commissions only slightly higher at $30/MM (well worth it imo).
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whats up kgb, what ecn broker will you be using for currenex/hotspotfxi platform? did you figure out what platform you will be using?
 
Quote from Moe27:

whats up kgb, what ecn broker will you be using for currenex/hotspotfxi platform? did you figure out what platform you will be using?
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It's coming down to ODL vs Vcapfutures vs Avail Trading. ODL has won the first round of negotiations (commissions, volume requirements, etc), but there is still more DD on my part to do.

FXi all the way, the sub-pip spreads for nearly all pairs really is the best. I haven't used a live Currenex feed yet, but from what I've seen so far, it hasn't moved to sub-pip trading.
 
Quote from Lon Eagle:

I would not go anywhere near ODL.
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I'm guessing that you're referring to their retail brokerage, and yes, I'm aware of the issues they have on the retail side. If you trade on a dealing desk, you're at their mercy.

I have not heard anything negative on their prime broker side, but again, I have much DD left to do.
 
Nothing to report. Will remain with IB for the time being as I have some clients coming in on that platform (I use their whitebrand service on the advisory side). I've been meaning to setup and fund an initial test account at ODL/FXi, but have been too busy with all the market movement.

Also rather content with my FX executions at IB as of late. If they'd only fix cross margins & NZD..
 
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