About 20% of my forex limit orders at IB are executed with price improvement. I doubt you'll see this with most brokers and results from IB not taking the other side of the trade but rather passing it to a market maker. It oftens pays for the commission. Just something else to consider.
I am a sales rep for IB and agree that our FX model (commission vs. marking up the PIP spreads) is way cheaper than other big name FX brokers out there (Oanda, Gain, Interbank, etc.). Any thoughts on where I could find a good forum to communicate the advantages of our model vs. the other brokers? Or database of active FX traders I could reach out to? We are the best deal out there for FX and just want to make sure all the active FX traders out there realize this (hopefully some will get in contact with me to open an IB account)
Another option is Barclays who does 10 % of OTC volume. 0.9 spread on EUR/USD , no commissions , execution up to 3 million size http://www.stockbrokers.barclays.co.uk/?category=whatweoffer&usecase=landing3
You're a sales rep? How come you not aware of forexfactory's broker discussion thread, or BabyPips's broker review thread? FXCM's sales rep is active in these threads. and ForexPeaceArmy too.
Gober, Without knowing how you trade it's difficult to tell. If your blotter is an indication of how you trade, I guess you average the equivalent of 1-2 pips (or ticks in the futures). If you're targeting sub-pip inefficiencies or very small targets you're between a rock and a hard place. If that's just the average of 10 pip winners and losers, then you'd probably be way better off trading FX futures (if you can get used to them). With that kind of volume you can get an exchange electronic seat and cut your monthly commissions in about 3 thousand dollars (assuming now you're paying 7-8 thousands). Your best bet is to contact IB, ask for a rebate on your FX commissions and if they say no (which is likely, since the discount they offer starts at 5 times your current volume - based on your blotter), ask them about the Electronic Corporate Membership Program (ECMP). Or, you could improve your edge (j/k). Good luck, commissions are bitches if you trade often.
Well I say if you want to make this "Best Deal" even Better, or Great, then IB should charge .25/10K/side and not the standard 2.50/side for all piker orders less than 100k.<Lets see IB work that DEAL mini/micro pricing. As it stands now spreads open way up on such sizes w/ the same commission to boot. IB's Commissions are structured for the larger lot trader; however even they'll get taxed if they don't trade in round 100k lots; e.g. 150K is charged commission as if 200K. < Is that correct sales rep? Or would it be 3.25/150K. Is there a sliding 10k scale above 100K. Or are all commissions rounded up to the next 100k. With MB Trading its 2.95/100k/side..scaled up or down to any size mini / micro lot size. And prices can be traded in1/10 pip instead of half pip, even though that can drive some crazy. Spreads are a touch wider, especially during slow periods, BUT, still not as wide as IB's spreads on their "ideal book" (sub 20k executions.) BTW "IDEAL" that's a loaded name wouldn't you say for an ECN?
If you are trading less than 25k USD notional per trade then we are about the same price as MB trading and other FX brokers, maybe we are slightly better still but not significant. However, if you trade in 100k lots or higher at other brokers then trade 100k with IB is much cheaper because our spreads are way tighter. I just checked the EUR.USD and our spread was 1/2 PIP wide 1.40320 by 1.40325 and also check MB at the same time and saw the spread was 1.40310 by 1.40335 Our spread is 2 PIPs tighter and if you do the math trading 100k lot with them is no commission but you lose $25 USD more on the spread when you go in and out where as with IB you only pay 2.5 USD commission. Please feel to contact me directly if you need further proof of this.
Wow, I see very large spreads on FXCM too. They added 1pips to the "best interbank quotes" and that seems to make it worse.
Hi bstay, The FXCM standard account spreads (listed on FXIntel) includes the commission in the spread (as a pip mark-up), so you're comparing apples and oranges. To compare the same setup where the commission is separate, you can use the FXCM active trader setup. -Jason