Yes, but the commission is 0.00002 of the currency trading value, e.g. 1,000,000 of EURUSD is USD20.00. I'd rather pay commission and have a 1 pip spread at these rates, than lose 2 - 3 additional pips in spread.
1M EURUSD is $100 pip from memory so I lose $200 in spread or $40 in commission..
1M EURUSD is $100 pip from memory so I lose $200 in spread or $40 in commission..
Spreadbetteur
Active member
- Messages
- 174
- Likes
- 3
Jonny
What hours can you trade ? Is it 24 / 7 ?
Spread
What hours can you trade ? Is it 24 / 7 ?
Spread
Current trading hours ar enot 24/7 but they are pretty extensive if you live in Europe or the USA
They provide there own data feed direct from the market. I use that in conjunction with Seirra Chart but there are free charting packages available to interface with IBs API directly.
JonnyT
They provide there own data feed direct from the market. I use that in conjunction with Seirra Chart but there are free charting packages available to interface with IBs API directly.
JonnyT
Better Spreads
It tends to be mainly size and volume. The bigger a broker is and the more liquidity they provide to the market, the better the spreads they can offer.
Its kind of why supermarket giants can sell milk, bread and eggs much cheaper than your local stores - they buy a lot a of produce from suppliers on a frequent basis and so can buy much cheaper. They can therefore sell for less. This is improved by the fact that they usually easily sell a whole lot more so they make more from selling cheaply. This is only a simple analogy.
Also, narrower spreads (cheaper prices) can also be offered to frequent volume traders to
1) encourage them to trade more often (and therefore more spread is earned) and
2) their frequent trading provides further liquidity to the market
3) the broker/MM can afford to offer narrower spreads because he earns about as much from wider spreads and fewer trades as he does from frequent trades and small spreads.
All make sense?
tehewo said:
It tends to be mainly size and volume. The bigger a broker is and the more liquidity they provide to the market, the better the spreads they can offer.
Its kind of why supermarket giants can sell milk, bread and eggs much cheaper than your local stores - they buy a lot a of produce from suppliers on a frequent basis and so can buy much cheaper. They can therefore sell for less. This is improved by the fact that they usually easily sell a whole lot more so they make more from selling cheaply. This is only a simple analogy.
Also, narrower spreads (cheaper prices) can also be offered to frequent volume traders to
1) encourage them to trade more often (and therefore more spread is earned) and
2) their frequent trading provides further liquidity to the market
3) the broker/MM can afford to offer narrower spreads because he earns about as much from wider spreads and fewer trades as he does from frequent trades and small spreads.
All make sense?
Just to clarify a few things here. IB's FX offering, IDEAL-Pro, has several liquidity providers which are major global banks. Furthermore, customers can play market-maker themselves. This is why the spreads are so low.
IB does not make any money off the spread - hence the reason why we charge a commission, which is equivalent to 0.2 pips.
I attached a screenshot to show the currency pairs offered.
IB does not make any money off the spread - hence the reason why we charge a commission, which is equivalent to 0.2 pips.
I attached a screenshot to show the currency pairs offered.
Attachments
seguna said:Whatever. But the true cost is still not just 1or 2 pips. So while it's a great spread, it's still a bit of a marketing ploy.
I can hear you now, 'there's just no pleasing some people eh?'
Marketing ploy?
OK so their stock, futures and option offerings are also marketing ploys as they charge commission there also?
Should they offer their services for free? IB does not get anything from the spread on ideal pro just as they do not get anything on stocks, futures or options. IB is a broker not a bucket shop or a market maker.
Btw. the spread on GBP futures has been 1-2 pips for ages why not trade them?
Also, you can earn the spread in ideal pro or futures as well as pay it. Do that for example on 1/3 of your executions and you end up paying net spread on 1/3 of your executions.
Bungle
SvenFoster
Well-known member
- Messages
- 250
- Likes
- 10
JonnyT,
Have you moved over to cash fully from futures now? Is cables liquity/slippage better on idealpro compared to the futures side?
thanks
Sven
Have you moved over to cash fully from futures now? Is cables liquity/slippage better on idealpro compared to the futures side?
thanks
Sven
Spreadbetteur
Active member
- Messages
- 174
- Likes
- 3
JonnyT
These spreads (1 Euro, 2 Cable) are for cash as well as future ?
Spread
These spreads (1 Euro, 2 Cable) are for cash as well as future ?
Spread
