Calling interactive brokers forex brokers is an understatement. This is because it goes beyond what other forex brokers have been able to manage. These forex brokers are regulated in the US and other countries such as Japan and UK by CFTC, SEC and IIROC. It was founded in 1977 in the United States.

Being a true ECN, you can be assured that this broker is reliable. It looks into orders to determine validity so that you don’t incur losses. This broker does not work against you and has your interest at heart as they receive payments through commissions and not the spreads.

RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Trading services

If you are experienced in the business of forex trading, you can try interactive brokers to enjoy their professional platform working with a variable spreads. Beginners should avoid interactive brokers since it is much more advanced designed for forex trading gurus. They trade through multiple order types giving you flexibility. You can trade stocks, ETFs, bonds, CFDs, forex, options and futures from anywhere over a variety of markets. Interactive broker vendors provide 70% of the global market shares.

Trading platform

Get on Trader workstation viable platform and start learning how to trade forex here. With unique types of set ups, you have to be open-minded so that you can learn how to trade on this platform. Even if it might not look very friendly, with time you are able to use many order types to trade forex. Ninja trader is a charting package used by interactive brokers to help you place trades on their charts.

Trading accounts

Options of trading with either a demo account or a mini account are provided by interactive brokers to prepare you to the competitive world of forex trading.

Commissions, leverage and spreads

Interactive brokers bills transparent commissions at a $ 2.50 per turn. Since the interactive broker wants to see you succeed, they don’t acquire more commission in case you lose your account. There are no hidden price spreads because interactive brokers combine quotation streams from foreign exchange dealers in different parts of the world. A maximum leverage of 1.78 is used. They also deliver price quotes in 1/10 of a pip.

Other features

Interbank quotes

Interactive brokers give you access to interbank quotes. There are no markups or kickbacks with interactive brokers. By combining real time prices from forex dealing banks, they are able to provide high quality services with low commissions to customers.

Currency conversion

Working with interactive brokers gives you the privilege of converting currencies or trade different currencies with leverage. This is possible through currency conversion offered by interactive brokers trading platform.

Large size order facilities

Limit the market impact by requesting for large sized quotes. You can also request for a reqoute after entering a quantity in order to get a good execution.

Cash forex

If you qualify for cash forex, you are able to trade on a leveraged basis. This however requires some extra trading permissions.

Position rolls

Swapping is possible with interactive brokers. To be part of automatic overnight position rolls, you do not need to pay any commissions. Roll prices are quotes provided from interbank partners.

MECN like market structure

Trade flexibly through order books which let you set orders away from the markets or in between markets making it easy to trade with other interactive broker clients as well liquidity providing banks.

FX auto swap

This programs educates you on how to apply reduced costs to venture into various trading opportunities with interactive brokers.

Deposits and withdrawals

You can both deposit and withdraw funds through electronic payment systems such as checks, ACH or bank wire transfer.

Customer support

Professional customer service helps you with any enquiries that you may have through talking to customer agents provided by interactive brokers. Multilingual agents helps with language barriers so that communication is easy for you to understand one another. Whether you speak English, French, German or Spanish, your enquiries will be answered.

Pros

  • You can trade forex from anywhere in the world through interactive brokers platform.
  • Unlike some forex traders who restrict traders from the US, interactive brokers accepts you even if you are trading from this country.
  • Using interactive brokers’ platform allows you to trade currency futures and spot exposing you to many trading opportunities.
  • Operating globally, you can easily deposit of withdraw funds from your local bank.

Cons

  • It is not meant for everybody since you need $ 10,000 to open an account
  • The platform may be challenging for beginners with so much to offer.

 

Final thoughts

The minimum deposit to open an interactive broker’s account deters many from trying them out making it in inaccessible to small traders. With a large sized account, you can try out interactive brokers and trade almost everything using one platform.

 

 

 

 

 

 

 

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