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Interactive brokers or hotspot?

  • #1
  • First Post: Jan 25, 2008 10:15am Jan 25, 2008 10:15am
Ive made a final decision to either go with the broker hotspot(the hotspot fx platform) or Interactive brokers.

Both of them seem to be good, but which one is best for currency trading?
  • #2
  • Jan 25, 2008 11:33am Jan 25, 2008 11:33am
There is no hard and fast answer, as it depends what you want to do.
You will have to compare platforms & commissions, flicking through hotspot's site, IB certainly are more up front about pricing.
The breaking of a wave cannot explain the whole sea.
  • #3
  • Jan 25, 2008 12:22pm Jan 25, 2008 12:22pm
Thanks for asking about this.

After the issues with some of the bucket-brokers lately (me at Velocity) and the shut-down issue at MB....I was looking to diversify my funds and had narrowed it down to these to as well.

I was leaning towards IB but welcome comments from anyone currently using them. Not opinions on which is best.....just which you use and why you favor.

Thanks!
  • #4
  • Jan 25, 2008 12:59pm Jan 25, 2008 12:59pm
Brunite: yes, these two seem to be the best choice for the retail market if you dont want to deposit 35k dollar to get a broker who uses currenex.
  • #5
  • Jan 25, 2008 1:15pm Jan 25, 2008 1:15pm
Quoting Craig
There is no hard and fast answer, as it depends what you want to do.
You will have to compare platforms & commissions, flicking through hotspot's site, IB certainly are more up front about pricing.
Exactly, you will need to provide more information (ie. trading style, pairs traded, etc. etc.)

Clearing firms and traders need to be paired correctly in order to maximize success in forex.
  • #6
  • Jan 25, 2008 5:13pm Jan 25, 2008 5:13pm
I use IB for the following reasons,

1. Free API
2. Regulated
3. Commissions are cheaper than MB
4. If you look on the NFA lists, they have one of the biggest capital bases
5. Range of products (basically everything you can trade)

I'm not as familiar with Hotspot, perhaps somebody else can comment.
The breaking of a wave cannot explain the whole sea.
  • #7
  • Jan 25, 2008 11:19pm Jan 25, 2008 11:19pm
Quoting Craig
I use IB for the following reasons,

1. Free API
2. Regulated
3. Commissions are cheaper than MB
4. If you look on the NFA lists, they have one of the biggest capital bases
5. Range of products (basically everything you can trade)

I'm not as familiar with Hotspot, perhaps somebody else can comment.

Thanks Craig.

Yes....the things you mention are what I found attractive. It's just that you don't hear as many folks talk about IB as you do some of the bucketshops. I understand the difference.....just nice to hear from someone who IS using them (happily) for the same reason that I felt important.

Thanks for the comments.
  • #8
  • Feb 7, 2008 5:00am Feb 7, 2008 5:00am
Quoting htbreaker
An example for heavy scalpers trading 10 Lots:

MBTrading: Commission: RoundTurn 100USD
Hotspot: " " 60USD
IB: " " 50USD

MBT/EFX have mostly the worst spreads, Hotspot has mostly the tightest (often 1pip or more tighter than MBT !!).

IB spreads are better than MBT, but mostly worse than Hotspot.

I would prefer Hotspot.

One thing to mention about Hotspot: they have an EU and an american branch. The american branch calculates commissions with "units traded", the european branch uses "USD-value traded". So for example 1 lot GBP/USD: american branch will charge $3 (100k units), european branch will charge ~$6 (100k GBP = 196k USD).
The EU branch has a nice platform, and offers accounts EUR(and other currencies), the american branch has the old platform and offers only USD accounts. Europeans can open at the american branch, but americans cannot open an account at the europen branch, AFAIK.

MB would charge ~10 USD in above example, and IB ~ 4 USD.
  • #9
  • Feb 7, 2008 5:36am Feb 7, 2008 5:36am
Quoting shrike
One thing to mention about Hotspot: they have an EU and an american branch. The american branch calculates commissions with "units traded", the european branch uses "USD-value traded". So for example 1 lot GBP/USD: american branch will charge $3 (100k units), european branch will charge ~$6 (100k GBP = 196k USD).
The EU branch has a nice platform, and offers accounts EUR(and other currencies), the american branch has the old platform and offers only USD accounts. Europeans can open at the american branch, but americans cannot open an account at the europen branch, AFAIK.

MB would charge ~10 USD in above example, and IB ~ 4 USD.
They will allowed u.s. customers to use there euro platform if you ask them.
If I Go Broke Trying Then I Will die happy.
  • #10
  • Feb 7, 2008 5:50am Feb 7, 2008 5:50am
Id like to open an account with the euro division(because i want an EUR account), but with the american commission model
  • #11
  • Feb 7, 2008 6:12am Feb 7, 2008 6:12am
Quoting htbreaker

MBT/EFX have mostly the worst spreads, Hotspot has mostly the tightest (often 1pip or more tighter than MBT !!).

IB spreads are better than MBT, but mostly worse than Hotspot.

I would prefer Hotspot.

I would get a demo from each and review the spreads first hand..
  • #12
  • Feb 7, 2008 6:17am Feb 7, 2008 6:17am
Quoting drkyle
I would get a demo from each and review the spreads first hand..
^^amen

Test them all out and decide for yourself...
  • #13
  • Feb 7, 2008 9:42am Feb 7, 2008 9:42am
I use Interactive Brokers, for short term trading via an API link

I think alot of people are put off because of the way they settle trades (its actually the correct way of doing it) but you always get left over with a few of what ever currency you are trading.

I let them build up and then settle them out all together.

Swap is poor unless you trade huge amounts. comission and spreads are good and i get good fills the majority of the time even if the market is moving quickly
  • #14
  • Feb 7, 2008 10:08am Feb 7, 2008 10:08am
I highly recommend IB. Their commissions can't be beat in the ECN retail space (except by Dukascopy, but they're not technically retail). Their spreads are fully on par with the institutional ECNs.

As mentioned, they don't pay swaps on positions under $10k USD in value (in any currency). So if you trade small amounts and are looking for swaps, your best bet is probably Oanda.

Base margins are 50:1, cross rate margins are 25:1, these are initial and maintenance levels (so don't put on highly leveraged positions if you want to have any breathing room, they will begin closing your position if you violate those levels).

They have a delayed closing period of 17:00 - 17:15 every day, only an issue if you trade AUD or NZD with news around those times.

IB doesn't offer a live demo, but I imagine the spreads between ECNs are closely correlated (most likely they share similar banks in their networks).
  • #15
  • Feb 7, 2008 10:23am Feb 7, 2008 10:23am
I notice that EFX offers no charting. I am now using enson anything else you can recommend for charting?
GREED IS THE ULTIMATE INDICATOR
  • #16
  • Feb 19, 2008 9:44pm Feb 19, 2008 9:44pm
As good as their technical platform is, IB has absolutely the WORST customer service of ANY business I've had to deal with in my entire life! This is not because their reps are not knowledgeable enough (although they have plenty of those, too)... but god forbid you having to dispute anything with them. The most stuck up, insulting, condescending group of people working for a customer-facing company, IMHO.

Just last week I had to claw out of them a reversal of erroneous margin call that occurred because their mark-to-market rate for USD/JPY at the time was way off market... it took three phone calls during the most helpful of which I was told that the liquidation will stand as is no matter what. Then a manager called me back and without any apology said they would revert the liquidation. In fact, they had problems with the yen conversion rates 3 days out of five last week, resulting in incorrect cash balances in my account...

Bottom line - good for stocks/options/futures, not the best choice for FX, to say the least... also, if your stress level is important to you, look elsewhere.
  • #17
  • Feb 19, 2008 9:53pm Feb 19, 2008 9:53pm
Quoting Subdude
Bottom line - good for stocks/options/futures, not the best choice for FX, to say the least... also, if your stress level is important to you, look elsewhere.
IB was also down for about 8 minutes during the NY session today. They've been slipping up lately...
  • #18
  • Feb 19, 2008 10:32pm Feb 19, 2008 10:32pm
I have not used them live only demo but Interactive Brokers have the worst platform I have ever seen. Trying to navigate it is like finding your way in a maze.
  • #19
  • Feb 20, 2008 5:47am Feb 20, 2008 5:47am
Like others have mentioned, I guess you could always try both on demo, and see what you like. Although obviously demo isn't an accurate reflection of what will happen live. But at least you can play about with their platforms.
  • #20
  • Feb 20, 2008 8:34am Feb 20, 2008 8:34am
What is the HOTSPOT account minimum, margins and leverage compared to EFX for example?
"All good things come to those who wait..."
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