Ok, assume 100K, that's 10% less on the interest. So we are talking about a 4.5% yield get knocked down to 4.1%. I am not sure about you guys, but it just doesnt sound too good to me. I am small size guy, so i go to Oanda. If u are trading a standard 100K lot, why not just go to globex? The spread are tight and you dont get ripped off on the interest payment
whats the difference between globex and spot?? do the prices in both markets move the same?? do they have the same currency pairs?? advantages and disadvantages?? thanks guys
Search ET, there are many, many spot vs futures threads. I used to trade only fx futures but now trade spot. They each have their pros and cons.
100k * 1.045^(1/360) - 100k * 1.041^(1/360) = $1 per day difference Given the spread at Oanda vs IB, on most pairs, expect to pay 1-2 pips more (except for eur/usd). Assuming you earn the full 4.5% interest on the entire 100k at Oanda, you'd have to have a holding period of 9-20 days just to break even on the higher spread you're paying (1-2 pips larger spread = $9-$20 higher spread cost, per lot).
hey guys, can you post a screenshot of IdealPro on the following currency pairs for me again please, eur/jpy, gbp/usd, gbp/jpy and aud/jpy pairs, just want to compare to my current platform again, thanks again boys......phreak
Use whatever you are comfortable with. Some like Oanda, some like IB, some like MBT, and some like Hotspot. Bottom line use that which makes you a trade better or easoer. If you are good at what you do, it really doesn't make a difference which platform you use. Remember, tho, a good platform is not going to make a bad trader better. Just avoid the bucket shops!
very nicely put, I dont get the point that some people are bitching about IB not paying interest on the first 10k capital. I mean, its such a small amount, if you have problems with 1 buck a day on one side but are either knowingly or just due to your lack of due diligence trading on a platform that charges a 2 pip, sometimes higher, wider spread on most fx pairs than IB does then you really should NOT be trading, period. IB is currently the most attractive forex trading platform, period, UNLESS you trade extremly small size or bigger size (5 million and north...) 1) Very attractive commission structure, beats any retail platform that also charges commission or wider spreads...do your own math 2) very quick fills, no problem with scalping, offers most pairs (only really miss the NZD/JPY pair) 3) VERY attractive margin interest...compare and DO THE MATH first before you accuse IB of being sub-par to any of the brokers you currently use...I have not found any, unless they offer slightly better ones but SERIOUSLY lack on all of the above. 4) Quotes are as close to the true market as it gets...I compared with EBS (on Bloomberg), hotspot and other ECNs and IB does not yank up the spreads at all nor lacks in terms of speed. Look at propfx, fxcm or others, those are a joke in fast moving markets, sometimes 3-5 seconds behind, 2-3 times wider spreads in times of volatility compared to IB quotes, and i sometimes saw even on the propfx (division of fxcm) that they were 20 pips behind or just totally mispricing the yen cross pairs (I assume this this is not normal but still, I never had such issue with IB on which I actively trade large size) 5) Reasonable margin of 1/5. If that is not enough for you then you are anyway trading at way beyond reasonable risk limits and are either just trying to be lucky or just an outright fool. You can argue about IB's competitiveness for small sized positions but keep in mind IB DOES NOT WANT small size traders thats why they have a minimum commission, minimum trade size (25K USD or equivalent), lower leverage than other brokers...etc. If this applies to you, trade with whoever else but keep in mind you are not at the heart of most brokers' interest nor should you be trading anyway as you are way too undercapitalized. Laugh now, be sorry later. Remember what I said when you close your account with your remaining 500 bucks or so.