Anyone using IB for forex trading?

[sccz97]

Thanks, Jonny.

The 'IdealPro' is a synthetic derivative market as per forex brokers / SB shops?

Can you trade this through the API?

I think you're getting things mixed up. IF anytihng, retail fx brokers are not a true reflection of the spot market. ANd even worse ... spread betting companies don't evne hedge themselves on best unless the bets are over a certain size. And I have no idea where you came up with phrase synthetic derivative, perhaps that would be more applicable if you were talking about going long gbpcad using gbp and cad fx futures

 

[BroadSword]

OK, perhaps I should have been clearer! I don't think I'm getting anything mixed up - I have (I believe) a very good understanding of how SB and retail forex works.

By synthetic derivative, I meant price is a second generation (relative to the Co's bank feed(s)) price, I.e. they make a market based on a price feed.

Whether they chose to manipulate / bias / stop run etc is their business based on how they chose to quote their price.

I was merely asking if this method (Idealpro) was a derivative market made by the MM (or bucket shop as JT calls them) or whether it was traded aginst other market orders from other traders...

I am perfectly well aware in theory of the differences and pro and cons of exchange traded markets, OTC spot markets and MM quoted bucket shop 'markets'

 

[JonnyT]

Yes, IdealPro can be traded through the API. I do it with my own APP.

JonnyT

 

[BroadSword]

Yes, IdealPro can be traded through the API. I do it with my own APP.

JonnyT

Thanks Jonny, I might look into it, as my current system is working well, and I perceive an API to help matters...

 

[Moneycat]

Or do you interface from the broker's platform to other software ?

I do it with Amibroker; I have heard others do it with Sierra Charts.

 

[Moneycat]

What is the smallest trade size you can trade with IB using the API interface on cable and dollar-yen?

Are these the Globex futures?

I have a strat that is really suited to using an API, and whilst at the minute I'm using a handheld PDA for alerts, and API would sure be interesting?

Thanks guys,

The minimum size is 25000 USD or equivalent in other currencies. Above that amount there are no "lots": you can trade 26000 USD or equivalent or even 25001 USD...

 

[sccz97]

By synthetic derivative, I meant price is a second generation (relative to the Co's bank feed(s)) price, I.e. they make a market based on a price feed.

This would be purely just a derivative of their liquidity provider(s) price feed unles you prefer to call all otc prices you receive from brokers synthetic derivatives of the actual underlying. But regardless, most fx brokers are more likely to base the prices they send to customers more from their exposure than the current interbank spot rate.

I was merely asking if this method (Idealpro) was a derivative market made by the MM (or bucket shop as JT calls them) or whether it was traded aginst other market orders from other traders...

IdealPro receives quotes from the 2 largest spot fx liquidity providers and I believe 2 or 3 smaller banks so is pretty much as close to interbank rates as you're going to get on a retail level. However, IB do allow you to trade against other IB customers orders. Please bear in mind that this is the only part of IdealPro that acts like an ECN. THe main liquidity providers have the choice to fill your trade or not i.e. prices by them do not need to be honoured. Depending on the aggressiveness of your trading this may not be an issue.

 

[BroadSword]

Thanks, Guys, that's helpful. I'll think things over, perhaps something for the medium term future.

Regards,

 

[Charlton]

I do it with Amibroker; I have heard others do it with Sierra Charts.

Moneycat

Thanks for the information. In fact I do have Amibroker, so that is a definite possibility.I am currently trying out Oanda, IB and FXCM. I must say that at present I would prefer to use IB, because I see several advantages on the brokerage side, but I have to be sure that the interface is suitable as well, hence my question.

Charlton

 

[Charlton]

What is it you want from IBs charts?

I use them for Forex without an hitch.

JonnyT

JonnyT

Your question is a good one - simple but hits the spot. This is my first forage into forex - it's been equities todate where charting software, free or otherwise, is quite sophisticated.

I have only been looking at Oanda, IB and FXCM so far and only for a few days now, so these were only first impresssions.

I have now downloaded IBs user guide and this certainly helps to put the interface in a more user-friendly light. I fully accept that 80% of the problem is me. I work in IT and it's a tendency there not to read user manuals !!

My initial impression of Oanda was that I liked the fact that the moving bid/ask lines were shown as horizontal lines on the bid or ask charts and that the orders and stops were indicated by little symbols on the chart, which made it very easy to track trades and potential trades. I have attached a screenshot.

In terms of other criteria and judging by comments on this site I am very likely to choose IB. Clearly I need to do a lot more work on the demo accounts to familiarise myself with them and I may well get back to you with a more organised list of questions/criteria.

Based on the advice and support you have given to others I respect your opinion on forex training and IB.

Thanks

Charlton

 

[Moneycat]

Moneycat

Thanks for the information. In fact I do have Amibroker, so that is a definite possibility.I am currently trying out Oanda, IB and FXCM. I must say that at present I would prefer to use IB, because I see several advantages on the brokerage side, but I have to be sure that the interface is suitable as well, hence my question.

Charlton

Then let's be more specific...

1. You need to have Amibroker Professional edition, or at least this is the one I have...
2. There is a specific plugin to allow you receiving TWS data into AB. Both (TWS and IB with plugin) have to run at the same time.
3. AB's plugin allows you to retrieve from IB up to 30 days of past data (backfill function) in 1 minute segments (or in a shorter time frame if you download a shorter period).
4. I think that no tick-by-tick data backfill is possible, so if you want to have tick charts you must keep AB running all time.
5. TWS allows max. 100 symbols to run: I suppose this includes symbols running in AB at the same time.

 

[JonnyT]

IB does do tick backfill, in small quantities

JonnyT

 

[Charlton]

Then let's be more specific...

1. You need to have Amibroker Professional edition, or at least this is the one I have...
2. There is a specific plugin to allow you receiving TWS data into AB. Both (TWS and IB with plugin) have to run at the same time.
3. AB's plugin allows you to retrieve from IB up to 30 days of past data (backfill function) in 1 minute segments (or in a shorter time frame if you download a shorter period).
4. I think that no tick-by-tick data backfill is possible, so if you want to have tick charts you must keep AB running all time.
5. TWS allows max. 100 symbols to run: I suppose this includes symbols running in AB at the same time.

Moneycat

I have AB Standard at present. I had some luck in downloading and installing the plugin and getting a feed from IB to chart , but this version seemed to only allow bid or ask or midpoint prices. So I think you are right that I would need the Professional edition.

On point 4, I would concur with you based on my reading of the user guidance.

Thanks for the information - it certainly looks promising once I get the upgrade

For anyone else who wants to try this you can find full instructions including URLs by going to the help search in Amibroker and typing in IB


Charlton

 

[Moneycat]

IB does do tick backfill, in small quantities

JonnyT

How small is small?

 

[Baruch]

I use IBs IdealPro.

The spreads can be only 1 pip on EUR and GBP during US open hours.

You have to be wary on stops as they are triggered on the bid being hit twice so remember that when setting them!

You can place stops/limits etc anywhere you want.

Compared to a standard Forex dealer they are like a Rolls Royce.

JonnyT

1 pips spreads on EUR and GBP sounds very nice. But what about the spreads when there are major news like NFP?