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Interactive Brokers - experiences and opinions

  • #361
  • Edited 3:40am Oct 31, 2011 3:01am | Edited 3:40am
I've been trading FX with IB the past 3 years. 6 months ago I opened an account with Oanda as I wanted to compare spread and slippage. Over the past 40 trades Oanda has consistently beaten IB fill prices with either none or very low slippage on all orders (stop entry, stop loss). I'm running the same stop entry stop loss trades on both accounts. I don't get how IB is giving me worse fills than Oanda especially since I have to pay IB commissions on top. I have IB trigger method set to single bid/ask. I wrote to IB and they tell me my trades are filling as they should be, and it's true, most orders are filled within 1 second of trigger, though 2-3 pips slip is quite common. So back to my question: why is Oanda giving me better fills? Has anyone ran a comparison and seen the same thing? I'm thinking of moving all my fx trading over to Oanda if they keep beating IB fill prices. Thanks for any thoughts.
  • #362
  • Oct 31, 2011 3:40am Oct 31, 2011 3:40am
Quoting RangeTrader
I've been trading FX with IB the past 3 years. 6 months ago I opened an account with Oanda as I wanted to compare spread and slippage. Over the past 40 trades Oanda has consistently beaten IB fill prices with either none or very low slippage on all orders (stop entry, stop loss). I'm running the same stop entry stop loss trades on both accounts. I don't get how IB is giving me worse fills than Oanda especially since I have to pay IB commissions on top. I have IB trigger method set to single bid. I wrote to IB and they tell me my trades are filling...
I used to be with both Oanda and IB , but have a look at this broker and you will never come back

http://www.lmaxtrader.co.uk/average-spreads
  • #363
  • Oct 31, 2011 3:42am Oct 31, 2011 3:42am
How does 'single bid' work? It sounds like the orders get triggered only on bid-prices - so long orders would get triggered "one spread" too late..
  • #364
  • Oct 31, 2011 3:45am Oct 31, 2011 3:45am
sorry just corrected, should have said single 'bid / ask'. it needs to quote the stop price once on the ask to sell, once on the bid to buy. I think by default they set it to double bid / ask which can be slower. so in theory the slippage should be the size of the spread, though in practice it isn't, there's often another 1 pip or so slippage which I guess is the time it takes ib to send the order out and get it filled.
  • #365
  • Oct 31, 2011 4:08am Oct 31, 2011 4:08am
just wondering whats your trading size?
  • #366
  • Oct 31, 2011 4:41am Oct 31, 2011 4:41am
Quoting RangeTrader
I've been trading FX with IB the past 3 years. 6 months ago I opened an account with Oanda as I wanted to compare spread and slippage. Over the past 40 trades Oanda has consistently beaten IB fill prices with either none or very low slippage on all orders (stop entry, stop loss). I'm running the same stop entry stop loss trades on both accounts. I don't get how IB is giving me worse fills than Oanda especially since I have to pay IB commissions on top. I have IB trigger method set to single bid/ask. I wrote to IB and they tell me my trades are filling...
A couple of points: Oanda filters its quote feed while IB does not. This means the IB price is more jumpy and will likely trigger stops easier than Oanda.

As far as I know, Oanda's fill policy on stop orders is fill sell on bid = price, fill buy on ask = price. IB doesn't offer that kind of default order method (I programmed my own to trigger that way). Some programs may be free to help get fills the same way as Oanda (ninjatrader?) if you can't program. If you are/become highly profitable on Oanda you will find that the slippage mysteriously increases on all types of orders.

After looking at the stop trigger methods on IB you might have better success using the Mid-point method as it may be less jumpy than the bid/ask, and adding/subtracting a fraction of the spread (1 or 1/2) to that price. (you will need to experiment).
http://www.interactivebrokers.com/ph...es/trigger.htm

Some of what you may be experiencing as slippage may be normal market dynamics. When the ask price moves down (triggering a sell stop) it may be that the bid also price (many times) moves down a bit extra with it in anticipation of sell orders like yours triggering, and the bid is then adjusted up to a normal spread amount very rapidly giving the appearance of a tight spread. Not that I like this, but this is a normal market dynamic not found on filtered broker feeds.

Another choice might be experimenting with stop limit orders on IB though you might miss fills when you need them most with this type of order.
  • #367
  • Oct 31, 2011 4:59am Oct 31, 2011 4:59am
My friend told me last few day. He has an open position of EU with profit, prior to hit his TP , Oanda wider the spread to 4pips. instead of 1.3pips.

He said during that time ONLY EU spread was widen.

Is the the norm for Oanda ?
~~ Happy Trading ~~
  • #368
  • Nov 9, 2011 6:16pm Nov 9, 2011 6:16pm
Quoting starbucks
My friend told me last few day. He has an open position of EU with profit, prior to hit his TP , Oanda wider the spread to 4pips. instead of 1.3pips.

He said during that time ONLY EU spread was widen.

Is the the norm for Oanda ?
Well, Starbucks, you may call it a norm, deja vu or whatever. If they were the only broker to widen the spread we, traders, would have been quite lucky. I don't know how long you have been trading but a couple of years ago "target spread" was not a commonly used term, at least not to the extent it is now. Every broker widens the spread these days. I will not elaborate on the underlying reasons, but you would better be surprised if the spread hasn't been increased in volatile markets. You don't believe Oanda widens the spread on an individual client base, do you? ....unless you have placed a multi-mln order

Interactive Brokers are one of the few goooood brokers out there. By the way Oanda is also a very good option, indeed!!!
  • #369
  • Nov 9, 2011 8:04pm Nov 9, 2011 8:04pm
Quoting IcyTrading
Well, Starbucks, you may call it a norm, deja vu or whatever. If they were the only broker to widen the spread we, traders, would have been quite lucky. I don't know how long you have been trading but a couple of years ago "target spread" was not a commonly used term, at least not to the extent it is now. Every broker widens the spread these days. I will not elaborate on the underlying reasons, but you would better be surprised if the spread hasn't been increased in volatile markets. You don't believe Oanda widens the spread on an individual client...
Hi IcyTrading,

Thanks for the info, in other words "Target Spread" is a norm in most of the broker, what about those big brokers like Fxall, CHF, Baxter...etc are they pratice the same thing ?
~~ Happy Trading ~~
  • #370
  • Nov 12, 2011 7:45am Nov 12, 2011 7:45am
Hi Starbucks,

I more into the retail FX - as a trader.

FXAll and Baxter - these are PB's (Prime Brokers) and they deal at the institutional level of the market - liquidity aggregation and clearing to a number of banks. So they work with professional clients and eligible counterparties. Their spreads and execution are better because they process much higher volumes. I cannot compare them with IB, Oanda, Saxo, FXCM etc...etc.. or whatever other broker which is predominantly (60-70%) operating on the retail FX segment.

Cheers!
  • #371
  • Jan 9, 2012 1:28am Jan 9, 2012 1:28am
Hi Traders,

Any one here trade Spot Forex with Interactive Brokers, I intend to open account with them, any advice ?
~~ Happy Trading ~~
  • #372
  • Jan 9, 2012 3:09am Jan 9, 2012 3:09am
If your are experienced traders then can go for real account otherwise I want to suggest for starting trading with demo account. I did not use this broker.
  • #373
  • Jan 9, 2012 3:26am Jan 9, 2012 3:26am
Quoting henryduncan1
If your are experienced traders then can go for real account otherwise I want to suggest for starting trading with demo account. I did not use this broker.
Hi hendry thx for your reply, currently am with Oanda, but I noticed that our fund is not safe if what happened to MF global happen to Oanda.

The beauty of Interactibe Brokers (IB) I noticed was they are members of SIPC so our fund are safe.

But, IB's trading platform seem like very complicated and they even charge when we change our SL/TP ..... so I need some advice from those who is currently trade with them.
~~ Happy Trading ~~
  • #374
  • Jan 9, 2012 6:30am Jan 9, 2012 6:30am
I trade with IB. There isn't a broker thats better for FX. Large pool of liquidity providers, tightest spreads, zero manipulation, fast data transmission, low fees and access to other markets as well. They have the FX trader feature in TWS platform which is extremely simple for fx trades. BTW you are mistaken, there is no charge for modifying orders like tp and sl.

If you trade a standard lot with them it would cost around 1.4 pips commisions and spread included. On paper more expensive than oanda but oanda plays spread and quoting games and is much more expensive that way. With IB what you see is what you get.
  • #375
  • Jan 9, 2012 7:26am Jan 9, 2012 7:26am
Quoting dakoo
I trade with IB. There isn't a broker thats better for FX. Large pool of liquidity providers, tightest spreads, zero manipulation, fast data transmission, low fees and access to other markets as well. They have the FX trader feature in TWS platform which is extremely simple for fx trades. BTW you are mistaken, there is no charge for modifying orders like tp and sl.

If you trade a standard lot with them it would cost around 1.4 pips commisions and spread included. On paper more expensive than oanda but oanda plays spread and quoting games and...
Thx dakoo for the info. may I know 1.4 pips is which pair ?
~~ Happy Trading ~~
  • #376
  • Jan 9, 2012 8:38am Jan 9, 2012 8:38am
Quoting starbucks
Hi hendry thx for your reply, currently am with Oanda, but I noticed that our fund is not safe if what happened to MF global happen to Oanda.

The beauty of Interactibe Brokers (IB) I noticed was they are members of SIPC so our fund are safe.

But, IB's trading platform seem like very complicated and they even charge when we change our SL/TP ..... so I need some advice from those who is currently trade with them.
Starbuck, I really don't think your money would be safer at IB. I'm not an expert but after reading a lot about the MF case I got to the conclusion that any broker could do the same thing independent of which regulators they fall under.

MF was supposed to keep funds not used in a particular trade in a segregated account so in case of a bankruptcy only the money used in that particular trade would be lost.

Unfortunately, for their costumers, MF just went a head and disregarded the rule, using the segregated accounts for their internal trades.

Any broker can do it. And IB can be doing the same thing right now without being cot.

Theoretically your money is safer in a broker with a segregate account structure but after MF the principle became very dubious.

Another point is that even if your broker play by the rules and keep it honest who can insure that their bank would not go under?

If you get to know how a bank insolvency works and who gets their money first, you will see that your chances of getting your money back in this situation are very slim. FDIC or not.

Thats the reality, you have to face and deal with the fact that there is always the factor called RISK.
  • #377
  • Jan 9, 2012 7:20pm Jan 9, 2012 7:20pm
Quoting QuadrupleX
Starbuck, I really don't think your money would be safer at IB. I'm not an expert but after reading a lot about the MF case I got to the conclusion that any broker could do the same thing independent of which regulators they fall under.

MF was supposed to keep funds not used in a particular trade in a segregated account so in case of a bankruptcy only the money used in that particular trade would be lost.

Unfortunately, for their costumers, MF just went a head and disregarded the rule, using the segregated accounts for their internal trades....
hi QuadrupleX, you are right . The only thing what trader can do is to minimize the risk. If broker's bank go under then too bad....

May I know who is your Spot Fx broker at the moment ?
~~ Happy Trading ~~
  • #378
  • Edited 9:40pm Jan 9, 2012 9:29pm | Edited 9:40pm
Quoting QuadrupleX
Starbuck, I really don't think your money would be safer at IB. I'm not an expert but after reading a lot about the MF case I got to the conclusion that any broker could do the same thing independent of which regulators they fall under.

MF was supposed to keep funds not used in a particular trade in a segregated account so in case of a bankruptcy only the money used in that particular trade would be lost.

Unfortunately, for their costumers, MF just went a head and disregarded the rule, using the segregated accounts for their internal trades....

The interactive brokers structure is much better than a futures account segregation. It is kept in an SIPC account( a US govt scheme). each account is insured upto $500000 cash. so in case of misappropriation of funds, not just the broker but Uncle Sam is to make you whole. Better odds.
  • #379
  • Jan 9, 2012 9:36pm Jan 9, 2012 9:36pm
Quoting starbucks
Thx dakoo for the info. may I know 1.4 pips is which pair ?
Well as of right now we are in tokyo hours and the spread is 1 pip on:

EURUSD
USDJPY
GBPUSD
AUDUSD
EURJPY
EURGBP
For the majors the liquidity on 1 pip is greater or close to 5M. I pay $15/million dollars dealt, so my total cost would come to 1.4 on all the above . During london hours EURUSD 0.5 pips can be had commonly for smaller sizes of 2M.

Also I am seeing 1.5 pips spread on
GBPJPY
USDCAD
I mean who on earth can get in GBPJPY for a total cost of 2pips comm included. hehe


Oh and did I mention the spread on IB's spot gold is 15 cents right now. Even after including commisions it would be 20 cents cheaper than any other spot gold broker.
  • #380
  • Jan 9, 2012 9:49pm Jan 9, 2012 9:49pm
Quoting dakoo
Well as of right now we are in tokyo hours and the spread is 1 pip on:

EURUSD
USDJPY
GBPUSD
AUDUSD
EURJPY
EURGBP
For the majors the liquidity on 1 pip is greater or close to 5M. I pay $15/million dollars dealt, so my total cost would come to 1.4 on all the above . During london hours EURUSD 0.5 pips can be had commonly for smaller sizes of 2M.

Also I am seeing 1.5 pips spread on
GBPJPY
USDCAD
I mean who on earth can get in GBPJPY for a total cost of 2pips comm included. hehe


Oh and did I mention the spread on IB's spot gold is 15 cents...
yup, GBPJPY is 2.7pips in Oanda now, normally if i long a position, my account will be -3.5 atleast. Think of it IB is better than Oanda.
~~ Happy Trading ~~
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