InterBank demo vs live spreads

Hi all,

Although I had already opened a different thread about IBFX and talked about the ways they cheat their clients, as I have found something new with them I had to open a new thread for it.

Today I found out that the spread they show in their demo accounts are different from the spread they have in live accounts. I was watching the same currency pair (eur/gbp) in the demo and live account at the same time. The spread was 10 in both live and demo accounts but suddenly it went down to 4 in the demo account but didn't change in the real account. So the trade I had in the demo account triggered the target and became closed but the same trade I had in the live account stayed open.

Then I decided to let the support knows about this problem. Becuase what you see in the demo has to be the same as live account otherwise you can not make a correct decision about opening a live account with that company.

I admit that the speed of placing the orders in demo and live accounts is different BUT the spreads should not be different at all.

Click here to know more about why I am trying to warn people against IBFX.

And here below please read the conversation I had with their support team and see how rude, arrogant and stupid they are:

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info: Thank you for contacting us. The next available agent will be right with you. Our goal is quality service. You may tell us how we do today by clicking HERE.
info: You are now chatting with 'Client Services 40'
Client Services 40: Hello, this is Thomas, how may I help you?
vahid: Hi Thomas
vahid: Is the spread you have on the demo account different from what you have in live accounts?
Client Services 40: Same spreads for all account types.
Client Services 40: The markets are very volatile now. There is an interest rate announcement coming up tomorrow from the FOMC and the speculation is that the US interest rate may be lowered from 1% to 1/2%.
vahid: But I was watching a demo and a live account at the same time. The EUR/GBP spread was about 10 in both. Suddenly the spread in demo account went down to 4 but it was not changed in live account.
vahid: How do you justify that?
Client Services 40: I don't justify it.
Client Services 40: The demo accounts are a means for clients to learn to use the platform and trade the currency markets.
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.
vahid: But just a few minutes ago you said "Same spreads for all account types", didn't you???
vahid: On the other hand, it was the live account that was stuck and didn't change and had lagging not the demo account.
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.
vahid: I read it.
vahid: and I answered you.
vahid: On the other hand, it was the live account that was stuck and didn't change and had lagging not the demo account.
vahid: So do you still say that "Same spreads for all account types" or you have changed your mind?
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.
vahid: It was the live account that was stuck and didn't change and had lagging not the demo account.
Client Services 40: Under normal market conditions.
Client Services 40: The spreads would be the same.
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.
Client Services 40: That is what is happening now.
vahid: ok! So now you are saying that "Under normal condition the demo and live account spreads will be the same not under all conditions."
vahid: is that correct?
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.Because of 10s of thousands of demo accounts there may be a lag in price changes.Because of 10s of thousands of demo accounts there may be a lag in price changes.
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.'
Client Services 40: What else can I say.
Client Services 40: The spreads you see are what you get.
vahid: Ok! So finally we came to this conclusion that the spread you see is what you get, right?
Client Services 40: Because of 10s of thousands of demo accounts there may be a lag in price changes.
Client Services 40: The spreads you see are what you get.
vahid: hmmmmmmmmm
vahid: You know what?
Client Services 40: Hello my name is Nicole, how can I help you today?
Client Services 40: Sorry, wrong button.
Client Services 40: Did I answer all your questions today?
Client Services 40: What else can I help you with.
vahid: No you are not trying to answer any question. You are trying to get rid of me.
Client Services 40: What else can I help you with.
vahid: Who is responsible in your company?
vahid: Who can we ask our questions from?
vahid: Give me his email address please.
Client Services 40: We are all responsible.
vahid: So you are responsible?
Client Services 40: [email protected]
vahid: so please answer my question properly.
vahid: Should the demo and live spreads be the same or they can be different?
Client Services 40: You keep asking the same question over and over.
Client Services 40: I keep answering that question over and over.
vahid: because you don't answer me. So I have to repeat my question.
vahid: Answer my question and I will not keep on asking it over and over.
Client Services 40: And the question????
vahid: Are the demo and live spreads the same or they can be different?
vahid: with the same currency pair and at the same time?
Client Services 40: Read above. I said that there could be a lag in the demo account quotes.
vahid: But this is not what you said at the begining.
vahid: You said "Same spreads for all account types"
vahid: didn't you?
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same.
Client Services 40: That is the answer.
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same
vahid: Ok so now you have learned that the spread is not the same in the demo and real account with the same currency pair and at the same time.
vahid: So next time that someone else asks you this question don't say that "Same spreads for all account types"
vahid: ok?
vahid: Now...
vahid: If you don't know, let me tell you that the demo account and live account spread HAVE to be the same under any condition.
Client Services 40: Please, what do you want?
vahid: you can not show something in the demo and then show something else in live accounts.
vahid: This is called "misleading."
vahid: I am telling you what I want.
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same
Client Services 40: That is my answer.
Client Services 40: Under normal market conditions the spreads will be the same or nearly the same
Client Services 40: Ok, then close your demo account and open one with another company.
vahid: shame on you
Client Services 40: You're from Canada. Open an account with Oanda.
vahid: It seems I am talking to a stupid robot who can only copy and paste and is not able to think and answer.
Client Services 40: Shame on you.
Client Services 40: Good bye.
Client Services 40: Thomas logging off.
vahid: You know what?
Client Services 40: Please do not chat back. We have many other clients who need our attention.
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I had a lengthy post last night on your other thread that responded to some of your complaints. At the last moment I deleted it instead of getting into it and may regret posting this one as well.

Those of us who have had live accounts with IBFX for any length of time pretty much know what to expect and what we're going to get when we pay our spread. They're not my ideal borker by any means, but I doubt I'd do all that much better somewhere else at the moment.

I don't like the new "minimum pip from price" rule they went back to after having gotten away from it some time back. I especially don't like the extreme spreads the first hour or so of the weekly open and sometimes the close as well. And I REALLY don't like the Eur/Jpy spreads at any time unless it's the what used to be the usual 4 pips. There's a few other things I wish were different as well. But overall, they'll keep my business for now.

But I have NEVER had anything other than courteous, knowledgeable, and prompt help from the client help desk. I have had several trades adjusted in my favor when i presented the documentation to them in a reaosnable manner. What you call rude, arrogant, and stupid is more a reflection of something else perhaps than the folks you were dealing with... and I think they did an admirable job given what they were having to deal with.

If I decide I can't live with a borker that gives the same level of priority to their demo platform as they do their live accounts which seems to be your main complaint on this thread, I'll change borkers, and suggest you do the same. I sure wouldn't expect them to.

Sorry, but your dog don't hunt in my opinion.

Wow!! I've been with Alpari-US so long I've almost forgot about the spread widening issue. They keep their spreads fairly constant. Give their Demo a spin and compare it to IBFX. You'll Like!!

It seems like they are not meeting their Service Level, in term of performance in the Trading Platforms (Servers) and their Customer Support Department. Since the Customer Support advised us to join another broker house, let us do so....

This Thomas who is giving this type of reply could be fired soon.

i can sorta see rudeness from both sides to be honest...

That is by far the worst customer service I have ever seen. I understand I could get grumpy at times, and I vent on the customer service at MGFOREX, but they put up with my crap. Isnt IBFX located in Utah? Do you think that their customer service is all mormon??? hahahah

Bored , and waiting for the news release

I became rude when he stubbornly told me that I can go and work with another broker. That was not my answer. Remember, customers are always right. This is the rule.

I don't know who has changed the title of this thread from "Stay Away from InterBank FX (IBFX)" to "InterBank demo vs live spreads".

Although this thread talks about the difference between their demo and live account, this is not the main thing I am trying to share with the others. I am really trying to say Stay Away from InterBank FX (IBFX).

I am sure nobody likes to be told by the support team that "you can go and open an account with another company" when he/she has a problem.

Is this what "support" means?

Bubble bursting time
Honestly, you folks that complain about MT4 shops. Get a clue - Your dealing w/ a bucket shop. They really can not care less whether you move on or not as they have 3 other suckers waiting to take your place.
As stated in ROASO:
"Well,' he said, `the customers are bound to lose their money anyhow, no matter what they buy, or how or where or when. When they lose their money I lose the customers. Well, I might as well get as much of their money as I can and then look for a new crop.'"

If your style of trading requires 'warm fuzzies' from your broker, then you best keep looking cause your not gonna get that in the retail broker environment. Sad but true.

I traded with IBFX when it used to be a good broker but left more than a year ago due to the spread widening. Many traders that I know also left at about the same time. Now this is more a broker for newbies looking for a forex casino.
I can tell you this: IBFX is the king of the bucket shops; you will not make money trading with them. They have changed every single rule in their favour:
- Requotes
- Off quotes
- Spread widening
- hitting stops at news time with even wider spreads
- Virtual dealer plug-in to delay execution

Too many things are skewed against us traders. Look elsewhere.

Found some history of IBFX (complaint made to NFA a year ago).

http://www.nfa.futures.org/basicnet/...10&contrib=NFA

Key point

COMPLAINT:

On April 4, 2007, NFA issued a Complaint charging Interbank FX and Crosland with failure to supervise. The Complaint also charged Interbank FX with use of misleading and deceptive promotional material and failure to uphold high standards of commercial honor and just and equitable principles of trade.

ANSWER:

On June 5, 2007, Interbank FX and Crosland filed an Answer to the Complaint in which they denied the material allegations contained therein.

DECISION:

On September 24, 2007, Interbank was ordered to pay a $100,000 fine. The allegations made against Crosland in the Complaint were dismissed.