IB new forex spreads

Discussion in 'Forex Brokers' started by oktiri, Feb 27, 2005.

  1. My understanding was that The FX market in IB wasn't 24 hours. Has that changed?
    #31     Feb 28, 2005
  2. mokwit


    In addition to FX reset for value date with IB there is a big gap in the middle of the Asian trading day called IB resest during which the whole world of Forex can deal and you can't.

    Right now it is 9.22 in Tokyo and there are NO IDEALPRO quotes from IB and have not been all morning. It is not a holiday and all other quotes are coming through fne and other FX brokers are quoting. Once again teh whole world of FX can deal and you can't.

    Shame, because I was impressed by the tight prices and stability of the spread yesterday with UBS on board. Before with BEAR quoting alone it was a complete joke with the spread usually 3-4 pips widening to 5-8 (+comm) anytime the market was actually near a potential entry point.
    #32     Feb 28, 2005
  3. if you are in Asia .. .maybe they can let you open account with USA server too, as we are open now
    for trading ....

    assuming you are allowed to trade USA futures
    and SPOT FX using it ... might that
    solve your problem ?
    #33     Feb 28, 2005
  4. mokwit


    Setharb, thanks for suggestions

    It's the US reset that also applies to Asian server that causes the problem - so no gain from switching to US server .

    Spot FX usually starts quoting at 6.30am my time, but for some reason did not come online until much later today.
    #34     Feb 28, 2005
  5. Steve_IB

    Steve_IB Interactive Brokers

    #35     Feb 28, 2005
  6. Steve_IB

    Steve_IB Interactive Brokers

    saschabr, the last price and volume would not be any use to anyone. Remember this is just a tiny subset of the market, the only last price information we would have would be that traded by our customers. So essentially this would be useless information. For example, if the current market is 104.71/104.73, yet the last IB customer to trade was one minute ago at 104.60, providing 104.6 as the last price is redundant information, i.e. useless. Similarly for volume. Volume in the interbank market is not provided. You could use the futures volume as a proxy if you are trading against USD.
    #36     Feb 28, 2005
  7. Thanks Steve
    #37     Feb 28, 2005
  8. Steve_IB

    Steve_IB Interactive Brokers

    Yes it will... and I think that is another important point with our FX offering. As well as trading with the market makers, you can always trade with other IDEAL-Pro traders.

    If the current market on cable is 1.9150 / 1.9153, you can place a bid at 1.9151 and this will be displayed to all IDEAL Pro customers, so the market will now show 1.9151 / 1.9153, and other IB customers are free to hit your bid.
    #38     Mar 1, 2005
  9. How IB's 1pip spread of USD/AUD is possible? Oanda is 2 pip
    for AUD/USD, are they any different USD/AUD vs AUD/USD?
    #39     Mar 1, 2005
  10. Steve_IB

    Steve_IB Interactive Brokers

    They are the same.

    Why is it possible for IB to be tighter?
    Think about our model. We are purely the broker, and are providing access to quotes given from the major banks. These banks are making markets. There is also nothing to stop our customers from making their own quotes which will be displayed in the bid and offer.

    I have never used Oanda, but I believe that they are the only ones making a market, and customers cannot trade with each other between the spread.

    As we add more liquidity providers, you can expect our markets to get better.

    I just took the attached screenshot. You can see the AUD is still 1 pip, and looking at the size displayed it's likely to be a bank market maker on each side. Now look at the CAD/USD line, and you can see that I've placed a bid which is now being displayed as the inside market.
    #40     Mar 1, 2005