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Interactive Brokers or ????

  • #1
  • First Post: Edited Jun 14, 2008 7:54am Jun 11, 2008 2:52pm | Edited Jun 14, 2008 7:54am
...I am looking for a good ECN style broker that meets the following requirements:

1) Allows scalping
2) Minimal spread 0-1 EUR/USD average
3) Minimal commissions total roundtrip should be less than 1 pip.
4) 100:1 leverage
5) ...and of course the usuals everyone wants, great liquidity etc.

Any recommendations?
  • #2
  • Jun 11, 2008 3:03pm Jun 11, 2008 3:03pm
Quoting fxRichard
...I am looking for a good ECN style broker that meets the following requirements:

1) Allows scalping
2) Minimal spread 0-1 EUR/USD average
3) Minimal commissions total roundtrip should be less than 1 pip.
4) 100:1 leverage
5) ...and of course the usuals everyone wants, great liquidity etc.

Any recommendations? Right now I am looking at IB and MBT however MBT has higher commissions while IB only offers 50:1 (if I remember correctly).
MBT is the only ECN that offers 100:1 (aside from a couple of Currenex PBs..). That being the only major difference between the two ECNs (I use both and the spreads are virtually the same), you'll have to ask yourself whether or not it's worth paying 2.5 times IB's commission rate for 100:1 at MBT ($20/M vs $50/M).

Although you are probably well aware of this, the risk of ruin of trading at 100:1 is exceedingly high. Whether or not it's worthwhile to pay such a premium commission for that one feature is questionable.

edit - You might want to also add CME FX futures into the mix (which are available at IB). They offer pretty much the best leverage/commission possible with spot-equivalent spreads. Right now the EuroFX contract offers intraday leverage of 125:1 at a commission rate of $14.70/M.
  • #3
  • Jun 11, 2008 3:10pm Jun 11, 2008 3:10pm
Thanks for the reply, this is what I was expecting but thought I would see if anyone else knew something I did not. As for the 100:1 leverage I am fully aware of the risks and implications, the way I trade takes this into account. Thanks!
  • #4
  • Jun 11, 2008 3:22pm Jun 11, 2008 3:22pm
There are future brokers that offer $500 or even $300 intraday-margin for EuroFX - thats 250:1 and more. Totally insane..
  • #5
  • Jun 11, 2008 3:46pm Jun 11, 2008 3:46pm
Yeah I just read of an individual that signed up with a broker offering 700:1 !!!! Crazy stuff! All i require is 100:1 to keep things going smoothly
  • #6
  • Jun 12, 2008 9:57am Jun 12, 2008 9:57am
if you find one with these advantages tell me also
  • #7
  • Jun 13, 2008 9:24pm Jun 13, 2008 9:24pm
Quoting fxRichard
...I am looking for a good ECN style broker that meets the following requirements:

1) Allows scalping
2) Minimal spread 0-1 EUR/USD average
3) Minimal commissions total roundtrip should be less than 1 pip.
4) 100:1 leverage
5) ...and of course the usuals everyone wants, great liquidity etc.

Any recommendations? Right now I am looking at IB and MBT however MBT has higher commissions while IB only offers 50:1 (if I remember correctly).



-----------------------------------------------------------------
Richard.
what is the minimum to join Interactive? for individual. ?
  • #8
  • Jun 14, 2008 7:54am Jun 14, 2008 7:54am
$10,000 as far as I can tell the only downside is 50:1 leverage.
  • #9
  • Jun 14, 2008 10:02am Jun 14, 2008 10:02am
At IB you have to pay margin on both legs of a trade if the account base ccy is not involved, for example: your account is in USD, and you trade EUR/JPY will increase margin requirement to 25:1. A EUR/USD trade will be 50:1 tho - since one leg is in USD. Atleast thats my understanding of the IB margin procedure from way back - if a current customer could confirm this it would be great.

I read that nowadays bigger accounts can use a portfolio-margin procedure (risk-based margin), where a single margin-requirement across all positions and asset-classes is computed (instead of putting up margin for every singlular position), possibly reducing margin requirement due to offsetting positions. I dont know how that works in detail tho.
  • #10
  • Jun 14, 2008 9:30pm Jun 14, 2008 9:30pm
Quoting shrike
There are future brokers that offer $500 or even $300 intraday-margin for EuroFX - thats 250:1 and more. Totally insane..
Which brokers are these?
  • #11
  • Jun 15, 2008 12:02am Jun 15, 2008 12:02am
Give ATC brokers a try. They just came out with the first true ECN MT 4 platform. The liquidity provider is Hotspot and the leverage is 100:1 vs. Hotspot's 50:1 and the opening balance is $3500. Also, they offer 10k lots as well.

EUR/USD spread is 0-1 and the commission is a flat $8 per 100k lot.
  • #12
  • Jun 15, 2008 8:40am Jun 15, 2008 8:40am
Ouch, that's a very steep commission rate, and I thought MBT was high! These commions are too high for my style of trading but may be good for someone else. Thanks
  • #13
  • Last Post: Jun 15, 2008 9:13am Jun 15, 2008 9:13am
Pipstar: for example global futures has very low intraday margins, and they run promos with evben lower margins on a regular basis.
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