OK. I used to have two other accounts which I would trade FX with. What is up with IB's commissions here? Placed some trades using idealpro today... Ever single trade executed has a commission of minimuim $2.50? If I'm scaling out or into a position, every single order I pay $2.50 on? This is in addition to a spread?
Yes and yes (sort of). IB's bid/ask spread isn't fixed like the bucket shops like Oanda and IBFX because they're an ECN. IB's spread is typically really small and the bid and ask you're seeing are real, not synthetic like at the buckets. If you trade large enough, the commission is relatively small. However, if you're trading the minimum size (25K I think) then it's rather expensive and you're better off at a bucket.
depenig on how long you hold your fx positions right now your highest cost is going to be interest paid, don't concentrate too much on commisions
AND even if you close out a non base currency position, they stick you with the conversion carry, until you physically close it your self. So they will ding you there, so be sure to square those non-base trades or pay the carry and extra commish. Most "REAL" FX brokers square the conversion for you, IB is a bit of a bitch in this respect, It's not like your converting to buy foreign stocks... IB ....its an attempt at currency trading.
let me ask a basic question suppose I buy forex the equivalent of $100,000 dollar in yen. lets say i put down $5000. how much interest do I have pay on a monthly basis and on what amount? where do I find the interest %?
Everything you need to know to calculate it is right there: http://www.interactivebrokers.com/en/accounts/fees/interest.php Just check your position amounts through the proper Tier sizes on the Interest Paid/Charged tabs.
Regarding interest receivable IB doesn't pay interest for the first USD10,000. For example you only get interest from USD 2,000 if you have USD12,000. This is just one hidden cost. The details of the catch: http://en.allexperts.com/e/i/in/interactive_brokers.htm Search for the title Interest rates.