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Broker Expands the Spread

  • #1
  • First Post: Sep 26, 2006 10:00am Sep 26, 2006 10:00am
Has Interbank changed their Spreads. This week they have expanded tremendously. I was lured in with tight spreads. False Advertising!
Trade what you see - Not what you think
  • #2
  • Sep 26, 2006 10:03am Sep 26, 2006 10:03am
they are the best(from my limited two years 6 brokers experience)
Quoting summitfx
Has Interbank changed their Spreads. This week they have expanded tremendously. I was lured in with tight spreads. False Advertising!
THE MAN
  • #3
  • Sep 26, 2006 10:17am Sep 26, 2006 10:17am
I like IBFX. They claim it's the Banks fault because the volume is slow which is true but it doesn't matter. To me it's like going to a Restaurant and you get your check and it's 2x the normal price and when you question the waitor he says- Well we had to raise our prices for a few hours beacuse we haven't had much volume today. Come back tomorrow and they should be like they were yesterday. It's almost criminal in my opinion. I would think a class action lawsuit will follow at some point. Wouldn't it be nice if we could all run our businesses with such callous disregard for the consumer. The Banks prefer that you don't trade the news so they greatly expand the spreads for a few minutes. I say that any other business that operrated in this fashion would fail or be sued out of business. Just my opinion!!
Trade what you see - Not what you think
  • #4
  • Sep 26, 2006 10:32am Sep 26, 2006 10:32am
IBFX is well known for expanding their spreads. There are a couple things that brokers do to retain profitability during highly volatile time periods. Slipping prices is one method, widening the spread is the other. You'll go with one broker that has bad slippage and another that has nasty spreads. At some point, you'll want to work with an ECN where you have many backend market makers and banks and a transparent feed to all of them.
  • #5
  • Sep 26, 2006 10:40am Sep 26, 2006 10:40am
Actually, IBFX spreads widen during non volatile times. Of course they go off the chart during really volatile times. I'm not sure why traders on this FF are so ho-hum about it. I guess we all get complacent and let them have their way. Thanks for letting us play, Mr Banker. lol


Quoting stockwet
IBFX is well known for expanding their spreads. There are a couple things that brokers do to retain profitability during highly volatile time periods. Slipping prices is one method, widening the spread is the other. You'll go with one broker that has bad slippage and another that has nasty spreads. At some point, you'll want to work with an ECN where you have many backend market makers and banks and a transparent feed to all of them.
Trade what you see - Not what you think
  • #6
  • Sep 26, 2006 10:42am Sep 26, 2006 10:42am
There is a popular thread that popsup here a lot that says GET OVER IT. Ok I'm over it!
Cheers
Trade what you see - Not what you think
  • #7
  • Sep 26, 2006 11:08am Sep 26, 2006 11:08am
Quoting summitfx
There is a popular thread that popsup here a lot that says GET OVER IT. Ok I'm over it!
Cheers
Hi summitfx, what are their spreads now in non news times?

This is what they have posted...
<TABLE width="70%" align=center><TBODY><TR><TD class=smallfont align=left colSpan=2>Spreads:</TD></TR><TR><TD class=smallfont align=middle>EURUSD</TD><TD class=smallfont style="PADDING-RIGHT: 1px; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" align=middle width="40%">2</TD></TR><TR><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle>GPBUSD</TD><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle width="40%">4</TD></TR><TR><TD class=smallfont align=middle>USDJPY</TD><TD class=smallfont style="PADDING-RIGHT: 1px; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" align=middle width="40%">3</TD></TR><TR><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle>USDCHF</TD><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle width="40%">4</TD></TR><TR><TD class=smallfont align=middle>AUDUSD</TD><TD class=smallfont style="PADDING-RIGHT: 1px; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" align=middle width="40%">5</TD></TR><TR><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle>EURCHF</TD><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BORDER-BOTTOM: black 1px dotted; BACKGROUND-COLOR: #d7dbee" align=middle width="40%">4</TD></TR><TR><TD class=smallfont align=middle>EURGBP</TD><TD class=smallfont style="PADDING-RIGHT: 1px; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px" align=middle width="40%">4</TD></TR><TR><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BACKGROUND-COLOR: #d7dbee" align=middle>USDCAD</TD><TD class=smallfont style="PADDING-RIGHT: 1px; BORDER-TOP: black 1px dotted; PADDING-LEFT: 1px; PADDING-BOTTOM: 1px; PADDING-TOP: 1px; BACKGROUND-COLOR: #d7dbee" align=middle width="40%">5</TD></TR></TBODY></TABLE>

would be interesting to see what you are being charged.

But it also says this on their home page


* During Normal Market Conditions. Our spreads are not fixed and will fluctuate with market volatility.
  • #8
  • Sep 26, 2006 11:22am Sep 26, 2006 11:22am
After complaining on the IBFX site I got this response. I was shocked that the spreads could actually be "fixed" by a customer service person. It was a strange confesion! here it is for those interested-I trade with real money so I find their can be costly for me yet they get hostile if the spreads are out of whack

"Oh please... like we sit around all day and just watch the spreads. Marilyn is in marketing, and she is one of the busiest people here; do you know how much planning goes into the trade shows? And what about all the planning just for advertisements? If all we did was trade all day then YES, we would know immediately when the spreads out of wack, but since we have jobs to do we ARE suprised when things aren't the way they should be. By no means am I hinting that the wider spreads is "okay", and we should (and will) work to get it back to normal as soon as possible. All I'm saying is cut Marilyn some slack.

I don't believe it... if business was ran the way everyone on this post thinks it would be we wouldn't be where we are today. No, we're not perfect, nor will we ever be.

Also, since Marilyn is in marketing she isn't in the position to get a platform problem fixed right away. IF YOU HAVE A PROBLEM, CONTACT CUSTOMER SERVICE and it will be fixed asap (I am in cust service, so right after I read this post I called and got the spreads fixed within 30 seconds).
Trade what you see - Not what you think
  • #9
  • Sep 26, 2006 11:29am Sep 26, 2006 11:29am
Summit, I am a little confused. Why did you call marketing instead of Customer service in the first place? Or was that where your were directed?
Also, I have to agree with you, who ever was speaking certainly needs to improve their CS skills.. Who was the speaker? and do you have a transcript of the conversation that is missing? This seems chopped up...

Would be interested in reading the entire thing... thanks Scott


Quoting summitfx
After complaining on the IBFX site I got this response. I was shocked that the spreads could actually be "fixed" by a customer service person. It was a strange confesion! here it is for those interested-I trade with real money so I find their can be costly for me yet they get hostile if the spreads are out of whack

"Oh please... like we sit around all day and just watch the spreads. Marilyn is in marketing, and she is one of the busiest people here; do you know how much planning goes into the trade shows? And what about all the planning just for advertisements? If all we did was trade all day then YES, we would know immediately when the spreads out of wack, but since we have jobs to do we ARE suprised when things aren't the way they should be. By no means am I hinting that the wider spreads is "okay", and we should (and will) work to get it back to normal as soon as possible. All I'm saying is cut Marilyn some slack.

I don't believe it... if business was ran the way everyone on this post thinks it would be we wouldn't be where we are today. No, we're not perfect, nor will we ever be.

Also, since Marilyn is in marketing she isn't in the position to get a platform problem fixed right away. IF YOU HAVE A PROBLEM, CONTACT CUSTOMER SERVICE and it will be fixed asap (I am in cust service, so right after I read this post I called and got the spreads fixed within 30 seconds).
  • #10
  • Sep 26, 2006 11:31am Sep 26, 2006 11:31am
Another Quote:


We don't control it, but we can do something about it when its not right.
_________________
adAM

Lets go skate.


I'll get off of my soapbox but I've just learned that when the spread on the USD/JPY suddenly widends to 4 pips instead of the usual 2 that it's a mistake and Customer service can fix it and perhaps issue a refund. We as traders should not accept everything they brokers put on us. Here's proof!
Trade what you see - Not what you think
  • #11
  • Sep 26, 2006 11:35am Sep 26, 2006 11:35am
They have a Public Forum. I know they advertise so it's tricky for you. I'm just fed up with all the BS on spreads. It seems wrong that they flucuate so widely. I'm never been one to accept the unacceptable! I'll drop it. If you trade real MONEY- you shouldbe concerned with flucuating spreads! Maybe collectively we can force change. It's happened before. Further more, The marketing director spends a great deal of time monitoring the forum or it appears. Today she said she has a cold and is pissy about all this talk on spreads from me and others on the forum lol


Quoting smjones
Summit, I am a little confused. Why did you call marketing instead of Customer service in the first place? Or was that where your were directed?
Also, I have to agree with you, who ever was speaking certainly needs to improve their CS skills.. Who was the speaker? and do you have a transcript of the conversation that is missing? This seems chopped up...

Would be interested in reading the entire thing... thanks Scott
Trade what you see - Not what you think
  • #12
  • Sep 26, 2006 11:36am Sep 26, 2006 11:36am
So are you saying that they normally give you a 2 pip spread when they post the normal at 3 pips, even on their advertising? How is this refund handled?



Quoting summitfx
Another Quote:


We don't control it, but we can do something about it when its not right.
_________________
adAM

Lets go skate.


I'll get off of my soapbox but I've just learned that when the spread on the USD/JPY suddenly widends to 4 pips instead of the usual 2 that it's a mistake and Customer service can fix it and perhaps issue a refund. We as traders should not accept everything they brokers put on us. Here's proof!
  • #13
  • Sep 26, 2006 11:38am Sep 26, 2006 11:38am
No, that is not it. I am trying to get an idea of what your complaint is...

What did they charge you? And I agree the person on the phone was not very polite... Thanks Scott


Quoting summitfx
They have a Public Forum. I know they advertise so it's tricky for you. I'm just fed up with all the BS on spreads. It seems wrong that they flucuate so widely. I'm never been one to accept the unacceptable! I'll drop it. If you trade real MONEY- you shouldbe concerned with flucuating spreads! Maybe collectively we can force change. It's happened before.
  • #14
  • Sep 26, 2006 11:44am Sep 26, 2006 11:44am
I'm dropping out of this dicussion. It seems pretty self explanatory to me. Most times the spread on the us/jpy is 2 but the last fews days it's been 4. If you trade say 5 lots that adds $100 to your trading costs. Right? You Follow?

So you investigate and they say sorry it's the Banks. Then suddendly, a Customer Service person jumps in to say -I can fix this and magically the spread goes back to 2. Something stinks?

People on this forum allow the brokers to do anything and then say stop your whinning- Idiots in my opinion. I'm signing off for good!

Later!


Quoting smjones
So are you saying that they normally give you a 2 pip spread when they post the normal at 3 pips, even on their advertising? How is this refund handled?
Trade what you see - Not what you think
  • #15
  • Sep 26, 2006 11:45am Sep 26, 2006 11:45am
It wasn't a phone conversation. They did not refund my money from the problem spread but maybe they should

Quoting smjones
No, that is not it. I am trying to get an idea of what your complaint is...

What did they charge you? And I agree the person on the phone was not very polite... Thanks Scott
Trade what you see - Not what you think
  • #16
  • Sep 26, 2006 11:48am Sep 26, 2006 11:48am
Summit my firend I can see that this has made you angry. I am not trying to defend IBFX I was just trying to figure out how much we are talking about. and by what criteria... Thanks for your explanation. I also will let it drop.

I hope your day improves, Scott


Quoting summitfx
I'm dropping out of this dicussion. It seems pretty self explanatory to me. Most times the spread on the us/jpy is 2 but the last fews days it's been 4. If you trade say 5 lots that adds $100 to your trading costs. Right? You Follow?

So you investigate and they say sorry it's the Banks. Then suddendly, a Customer Service person jumps in to say -I can fix this and magically the spread goes back to 2. Something stinks?

People on this forum allow the brokers to do anything and then say stop your whinning- Idiots in my opinion. I'm signing off for good!

Later!
  • #17
  • Sep 26, 2006 11:48am Sep 26, 2006 11:48am
Scott as you know you pay the difference in spread so I'm being falsely charged if the spread has widened to 4 when perhaps it should be 2 or 3 and maybe according to the customer service agent it was out of whack and should be fixed. Come on you trade it's not complicated


Quoting smjones
No, that is not it. I am trying to get an idea of what your complaint is...

What did they charge you? And I agree the person on the phone was not very polite... Thanks Scott
Trade what you see - Not what you think
  • #18
  • Sep 26, 2006 11:51am Sep 26, 2006 11:51am
Anyone who trades with real MONEY should be angry when the spreads widen unexpectedly and you pay for it. I'm confused as to why people on this forum just say oh get over it.


Quoting smjones
Summit my firend I can see that this has made you angry. I am not trying to defend IBFX I was just trying to figure out how much we are talking about. and by what criteria... Thanks for your explanation. I also will let it drop.

I hope your day improves, Scott
Trade what you see - Not what you think
  • #19
  • Sep 26, 2006 11:53am Sep 26, 2006 11:53am
Well in your first post you said this.
"This week they have expanded tremendously"

I did not realize what that meant. For you it means 2 pips... I now understand... thanks . really, I mean no disrespect. I just wanted to quantify what you meant... I truly hope your day improves.. Thanks again, Scott



Quoting summitfx
Scott as you know you pay the difference in spread so I'm being falsely charged if the spread has widened to 4 when perhaps it should be 2 or 3 and maybe according to the customer service agent it was out of whack and should be fixed. Come on you trade it's not complicated
  • #20
  • Edited 12:10pm Sep 26, 2006 11:58am | Edited 12:10pm
nevermind
Trade what you see - Not what you think
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