NEW MT5 Seriously Stuffed For Traders Platform

My words in red. IBFX's promo department in black. What the below shows me is there is a work around to the one position system that lesser MT5 brokers will possess, as a present MT4 broker has already developed an agreeable execution method for the NFA ruling, that still allows multiple positions of a sort.

 

1. Does FIFO apply to all of my trades?

1. First in / First out applies ONLY to trades of the same size.

So according to IBFX if you set trades of 0.11 lot and 0.10 lot then the FIFO rule does not apply. But if you scale into a trade using same lot sizing each entry then your stuffed.

So with IBFX my statements made in the first post would only apply if your EA makes multiple trades of the same size (which a large proportion of EAs do):

2) EA aided traders may be hindered; As an EAs often trades the same forex pair as the manual trader, if an EA trades opposite to the manual trader, than the trades will be made null, and one trade may be rendered useless. Post 6 page 1.

3) EA aided traders may be hindered; EAs can often trade more than one trade at a time, that is can trade in both directions. If this happens the one currency pair in MT5 the position will be nulled into one. Possibly at a loss.

4) Multiple EA traders are stuffed: if traded on the same forex pair. Post 16 Post 19, page 2.

 

1. Will my Expert Advisor still work?

1. All of your Expert Advisors will continue to work with all of your pre-programmed stops, limits and trailing stops... ( and the answer should then include unless your EA has more than one active trades of the same size (which a large proportion of EAs do) or you happen to manually trade the same size lot as the EA.

The exception to this must be unless the EA launches trades of the same size. Otherwise their statement above would be lie, how unlike a marketing department.

1. Will I still be able to use Stops and Limits, Trailing Stops and Take Profits?

1. Absolutely – With the IBFX solution, you won’t have to make any changes from the way that you are trading currently. No need to make any adjustments to Stops and Limits, Trailing Stops or Take Profits.

This was always a MT4 issue. However, if changing the ordering system behind the scenes on the broker execution side it seems IBFX have a work around for the NFA ruling. This seems to me that IBFX would not be able to call themselves an STP broker.

1. Will I still be able to close any of my orders of the same currency pair in any order?

1. Yes, with the IBFX solution, your trading will still be fully functional without any changes to your current trading strategies.

Strategy does not change... hmmmm... But below they mention their FIFO offsetting features and creative accounting procedures do change and above they mention you can not use same lot sizing on the one currency pair without FIFO affecting.


IBFX have claimed no changes to functionality at the following link http://www.fxstreet.com/brokers/news...6-2384e23c9804 . IBFX traders should try the following to determine whether it is truth:

1. Try to use Forex Funnel, I bet you can't.
2. Try to use FAP or FAPTurbo with multiple trades being allowed and MM turned off, I bet you need to change you strategy. There are probably other examples.
3. Try to use FAP and FAPTurbo at the same time on the EURUSD with same lot sizing.
4. Allow an EA to trade and then try to trade the same size manually.
5. Try to use any combination of EAs with same lot sizing.

However, this is a very minor issue if the broker offers micro lots, like IBFX does. (0.01lots) This will determine whether IBFX are telling the whole truth and nothing but the whole truth.

1. How will this affect my daily statements?

1. Interbank FX Official Statements will come directly from Interbank FX’s proprietary back office system using our FIFO offsetting and accounting procedures. These statements will be accessible through a client’s Web Site Login. You will still be able to pull an Unofficial Trade Journal using the Trade Journal feature within the IBFX website. You will also be able to produce Unofficial Trade Journals using MetaTrader 4 as your Trade Manager.

Does this combined with the question above mean that you will not actually know your account balance exactly because of the accounting procedures mentioned above and that your trade journal will be edited. Because last time I looked MT4 kept a fairly accurate trade journal. However, this again is a relatively minor issue as it causes IBFX to be more accountable for their accounting and trading practices.

1. Does this NFA rule apply to all U.S. based brokers?

1. Yes, this rule affects any broker in the U.S. that is a member of the NFA. Other brokers have attempted different approaches to this new ruling. We at Interbank FX strive to make trading in the forex market as simple as possible for our clients, all the while in full compliance with the NFA.

So it seems that with creative accounting procedures and re-alignment of trade execution behind the scenes MT4 brokers will NOT have to downgrade to being MT5 brokers.


Maybe IBFX have a solution to the MT5 one position execution system, although at the expense of keeping an accurate trade journal...

That is definitely a step in the right direction for MT4 traders, and also shows that MT5 developers should be able to do work arounds to their one position currency trading if they choose.

Any MT4 IBFX traders are encouraged to tell us all of their results...

Now this appears to be a positive.

The first post in the link below will give you a list of MT4 brokers not struggling to agree to NFA rulings.
http://www.forexfactory.com/showthread.php?t=174626

Hi Aquaart.

We are trying to get our video showcasing how this works up on our website today. I think this will shed some light on this issue a bit. I will let you know when it goes up.
Thanks,

Marilyn (from Interbank FX)

you still can't put buy and sell pending orders in the platform at the same time.

Sorry guys.. video will be Monday.
Trader FX.. we are working on addressing that but will get through the FIFO implementation first.. Hopefully I will have news for you on this issue at a slightly later date.
Marilyn

i hope so, i realy like ibfx.

My words are in black:
"Certain US competitors have decided that their solution to the new FIFO rules are to move their customers overseas, rather than being compliant," said Todd Crosland, Chairman and President of Interbank FX. "At Interbank FX, we have embraced the NFA's efforts to help protect customers and provide a seamless solution without any changes to their current trading strategies."

Other brokers have major international bases to begin with... IBFX don't...
That is the real reason they are racing to make MT4 back end NFA compliant.

However, I think many MT4 traders would be greatful, once IBFX get it completely right.

Here is a list of MT4 brokers not needing to be NFA compliant.
http://www.forexfactory.com/showthread.php?t=174626

Hello,
my personal opinion is that people that talk about HEDGING don't even have the smallest clue about what hedging really is. Buying and selling the same thing is not an hedging strategy. It's being confused.
Now, these people that complain about MT5 and the brokers and the NFA rules should study a serious trend following strategy and forget about hedging, because hedging, my dear guys, is a very complicated process that requires really big knowledge and experience.
Unless I'm missing a point, I don't understand all this talks about hedging...

Alex

I guess you don't trade multiple time frames. I trade the 4hr and enter/exit on the 1hr, as bankers do. Right now the GPBJPY is down on the 4hr, but in a gang-war on the 1hr at 150 price. So going long on the 1hr might make sense until it hits a SR line. While the TREND is down, you forego 100 pips ignoring the 1hr.

With the American NFA system you have to exit your 4hr strategy to do the 1hr. It's the kind of thing that tells me to put US events on the backburner, like any banana republic. After all, you can't fix stupid. Death throes of a failing empire. On the upside the dollar demise should make Soros far richer. I saw what he did to the rouble going from 8 to 1000. I wonder what Americans will do when Soros makes a Jackson the new peso?

My problem too.

I trade the 4 hour for 7 pairs.

I trade the 1 hour (for the same 7 pairs, 19 out of 20 times the 1 hour trade direction will agree with my longer term strategy on the 4 hour, so no problem)

I trade the 5 min for 3 pairs and 15 minute for 2 other pairs (The 5 main pairs of the 7 above). I have worked out that this strategy agrees with the 1 and 4 hour about 70 percent of the time. This is my main trading timeframe. (30% of the time I would be hedging, not NFA or MT5 allowed)

Hence my Loss Choices...

1) Lose 30% of my main strategy and 5% of my 1 hour strategy.
2) Lose 30% of both of my secondary strategies (1 and 4 hour), and long term stability that longer time frames offer.
3) Trade 2 accounts lose leverage / protection and gain complexity in switching between 2 accounts.
4) Abandon longer term or the shorter term strategies.
5) Increase complexity of trade setting for the longer term strategies.

Hence MT5 and NFA have ONLY done damage to my trading style.


I have noticed that IBFX see it as a problem, otherwise they would not be trying to fix it. Hopefully they will post here with a COMPLETE fix.

Here is a list of MT4 brokers not needing to be NFA compliant and not downgrading to be an MT5 broker.
http://www.forexfactory.com/showthread.php?t=174626

Yeah i already made a profit on the 1hr GBPJPY, as it went up to a SR line then came screaming down. Still bearish on daily and mixed on 4hr. Perhaps there are hedging abilities in the futures market. I traded wheat in the past and hedging seemed not only easy, but essential. If you already have the physical wheat, then placing a sell hedges you. A trader would put up two positions for exact the same purpose, and he wouldn't need to bother growing any. Regardless, both participants are hedged. Anyone who claims hedging has no merit has obviously never produced a commodity. Thanks for being a rare light in a dark sea of ignorance.

Trends are cycles. How can people use cyclic indicators and yet claim that all the cycles are always 100% in phase? That's a mathematical impossibility. It's why we have overtones in music. Ignorance like that will eventually be found out. Unfortunately, not before it's codified in US law.

true...

this thread is waste of time and useless.. When MT4 came out same issues were posted... if you cant make money, you will always bitch about the platform...

Would you care to be specific? You know what they say about sweeping statements being a "waste of time and useless".

You said,

You obviously did not read the thread. The entire thread is about the differences between MT4 and the future MT5.

So, how can they be the "same issues"?


Please explain, otherwise your comment shows complete lack of understanding of this thread or FOREX in general.


Here is an MT5 broker free list, who are also MT4 brokers not needing to be NFA compliant.
http://www.forexfactory.com/showthread.php?t=174626

I guess Feardox meant to say that same issues where posted with the change from MT3 to MT4....... and I totally agree with him.
I think that when they can't get results, people blame the platform or the broker, but I know from experience that people loose because of the complexity of trading a market that it's far from being a game..
A platform can change, hopefully in better. Rules can change, not always in better. We need to adapt in order to have winning opportunities.

Alex

hi aquaart,

i have read very bad reviews about this broker at fpa.
do you still trade with gomarketsaus??

if yes, can you briefly share what the trading conditions are like now? regarding execution and are there any slippage? thanks

Below is a picture of their quotes.

Yes I trade with gomarketsaus, in the absence of a genuine ECN based in Australia that uses MT4.

They seem to be claiming STP, which is the same as saying "no dealer requotes" to me.

I have had no problems with execution. I have had no slippage issues (hard to tell now with the ECN style, not true ECN).

However, major server upgrade last week end (5th and 6th Sept), was aimed at removing any issues, in their marketing letter sent out (30th Aug), quoted below in blue:
"We appreciate that there are many trading styles used by our clients including the use of Expert Advisors, scalping, range trading and news. We have attempted to balance these styles of trading in our improved order execution style whilst also countering the problem of system generated requotes that some clients suffer from due to slow connectivity in fast moving markets. We are pleased to announce that we have been able to remove all minimum distances for placing stop and limit orders whilst also changing to market execution."

The above says to me, that some clients were having significant issues, and the week end of the 5th and 6th was aimed at eliminating them. BUT I had no problems to begin with (except I would prefer them to be a genuine ECN).

I can say spreads posted in the picture below are accurate for US and UK sessions and spreads do get very tight at times. Rarely look at the Asian session. The EJ and GJ are my main instruments, and they are normally about 3.3 pip and 5.5 pip respectively.

My deposit into my trading account turned up 1 business day later.

If you like other big movers like GA, GCa, EA and ECa the spreads are really good on those too.

All the USD and JPY pairs are pretty good.

thanks for your swift reply.

do you use market orders for entry? if yes, did you ever get slipped?
how is their customer service? are there issues with deposits and wihdrawals??

i visited their website just now. clicked on their live chat and it seems they're off. so their live chat is not 24/5 and it's a minus to me as i'm overseas.

from the picture of their quotes that you posted. it seems the spreads for eu is high. even during london and us session. thanks

Market orders no, I tend to use pending limit orders for entry. So they wouldn't slip otherwise it works in my favour.
However, "slippage" is very difficult to tell, as they are ECN styled, and so spreads are always variable.

Made one deposit with no problems with that one.

Made no withdrawals yet.


Customer service could improve in their knowledge base (but I am also soon to be a qualified foreign exchange advisor (an Australian requirement)), but probably ok for most clients.

[/quote]

I would have thought these spreads were pretty decent
EU 1.5 pip
UJ 1.4 pip
UCh 2.3 pip
AU 2.2 pip

just noticed you said overseas.

Unless you are NZ, I don't know whether gomarketsaus.com are available for international traders. Check with them...