Not quite everyone I found their FX Trader platform unreliable and not particularly user friendly and their customer service is a nightmare to deal with. The thing is they're not really any cheaper than many other shops, and fills aren't any better. If you like them then fine, but IB aren't the only (or obvious) choice for many fx traders.
I would have to agree with this, whilst the rates etc are good, customer service is basically useless and the API is crap.
Crap? Crap? Hardly. I use their API all the time (C++ socket apps) and think it's the best thing since sliced bread. It's fast and easy to understand.
kon.P, I understand that. My question is, if you're algo trading and require several years of tick data for testing, what historical data set are traders using w/IB? IB doesn't have this. I'm assuming I'll have to use live data other than IB's as well in order to match the historical data set. FWIW, I'm thinking of using Gain's historical tick database for backtesting and then using their demo live feed or opening a small acct just to get the data feed. But, I'd trade through IB. Is anyone else here algo trading FX w/IB? -Lou
What I would do is quit trading spot and trade the futures instead. That way you can use IB's feed for trading and match it up with whatever historical database you want. There won't be any discrepency if they are futures. I agree with the others regarding IB's charts - they are next to useless. There are plenty of other charting programs out there that work with IB's feed. Like Kiwi Trader, I use Sierra Charts. Its a very robust program and with the latest updates has excellent auto trading capablities as well. Good Luck. Regards...
Use IB and trade the currency futures and hedge them with the spot. It is the best thing about them as it is difficult to find another firm that will allow/provide this. IB's TWS sucks in my opinion (as well as many others) but there are plenty of other front ends out there that make it easier to trade with them. As to algo/backtesting, you're SOL on the forex front with IB. You can use another's data feed for backfill on stocks and futures because the prices they give you are the same as any another vendor since they all are cleared thru exchanges. Fx isn't so the only prices that you can rely on for IB's platform is their own prices - they are not going to honor your E-Signal fx prices as that is from different liquidity providers. (E-Signal uses HotSpot). Also, you are better served trading with FXCM than Gain/Forex.com
cstfx, I'm interested in your opinion on this one. I already trade the few FX futures that are out there. I'm looking to FX spot to get exposure to non-dollar pairs. I was thinking of using Gain for both live and historical data but trading through IB. I'd like to work w/IB b/c I'd like to keep my both my futures and FX buying power in one acct. I understand that IB won't have the exact same prices as Gain but my thought is that they should be within 1 or 2 pips of each other on average (I haven't tested this assumption yet). 1-2 pips difference is close enough for me. Also, I'll probably mostly use limit orders, for entries at least, since I don't really trust OTC anything. Do you think I'm wrong to assume that the prices would be this close? Why did you say that I'd be better off w/FXCM than with Gain? Liquidity? At first glance, it does appear that there's greater tick volume at FXCM than w/Gain. ------- Turhovach, I use Ninja for charts - which works fine. Since I'm algo trading I don't need anything special regarding charts. Thx, Lou
Prices from one broker to the next "generally" vary by at most 5 pips. That being said, you will find instances (especially here) of discrepancies from one to the other which could be the result of many different issues, from price manipulation to different liquidity providers but they always return to an equilibrium. If your time frame is mid to longer term, just about any broker will probably provide the hedge you need. Just make sure they are financially sound. And not FXCM. (click the link)
My avg. holding period is about 12 hrs. 5 pips is probably too far apart, but 1-2 pips would be okay. You mentioned a link but I didn't see one. Also, you mentioned "hedge"; I'm not hedging, purely directional. FWIW, here's my observations on bid-ask spreads for a few of the brokers: I've been watching bid-ask spreads with Gain, FXCM, Barclays, and futures on 6-10 pairs over the past few weeks and at a variety of times and events. Barclays is the worst by far. FXCM and Gain seemed pretty close. Gain and FXCM were always inside the Barclays spread, with the edge to Gain. Also, during US trading hours, Gain and FXCM were about 1.0-1.5 pips wider than the futures but were tighter by about 0.25-1.0 pips during non-US trading hrs. I haven't watched the IB spreads as closely. I'll try to look at this more closely over the next week or two. I recall them being about 0.25-0.50 pips inside of the Gain and FXCM spreads. Do my observations appear consistent with what you've seen with these brokers?