Account application InterbankFX/Interactive Brokers - arbitration agreement

Hello,

I will open an account with Interbankfx next week. There is a form called “arbitration agreement”, which is optional, i.e. I don’t have to sign it. https://interbankfx.com/newapp/arbit..._agreement.php. It says:

“I/We (“Customer”) agree that any claim, grievance or controversy arising out of or relating to Customer(s) Account, to transactions pursuant to the Customer Agreement or the breach thereof, shall be settled by arbitration in accordance with the rules of the National Futures Association, the American Arbitration Association, or the exchange upon which the transaction giving rise to the claim was executed.”

So it doesn’t has to do with arbitrage techniques or taking advantage of temporal delays of the platform. There is also an “Arbitration agreement” in the Interactive Brokers application. My questions:

-Have you signed this document?
-Which pros and cons are there? I don’t see any advantage.
-Can there be problem, if I don’t sign it, i.e. will IBFX reject my application? It would be nice, if you can write your opinion/experience briefly to this topic.

Danny

The document has to do with arbitration...not arbitrage...2 different things.

Basically it says that you will take your case to arbitor if there is a disagreement rather than just suing them in civil court. It doesn't mean you can't sue them, it just means that rather than take your case public in case, you will at least attempt to settle any issues behind closed doors through arbitration.

I have signed the document. I'm sure if you don't, IBFX has the right of refusal, meaning they may not approve your application.

As far as advantages and disadvantages go, let's just say that they probably won't approve your application. It's not required, as you said, but neither is them accepting you.

Hi

Looking for feedback on InterbankFX. Does the spread change drastically during news hours. Any known disappointments

Thanks in advance

-RH