IB for Forex?

[roberk]

Sorry for any confusion but I am not an advanced forex trader. So could someone explain to me what is Globex, how you trade in it, where can you trade it, who else trades it. And are forex futures, just futures based on forex.

Thanks for any comments.

Ilia,]
when you use the word forex it means the interbank exchanges- to get in on that you have to go through the bucket shops -at least for now. They set their own margins, spread, rates and so on. They can refuse or accept orders based on whether they make money. It is open to major and minor scams.

Currency futures are not called forex and on operate on electronic markets (in this case Globex) which brokers feed into. No matter which broker you use the spread etc (but not commission ) will be identical. It is truly fair.

 

[ilia king]

I think I'm getting the picture here, however where do the bucket shops get the information about forex, and where does CME get its information.

Also is there a website about GLOBEX that I could look into

 

[ilia king]

They can refuse or accept orders based on whether they make money. It is open to major and minor scams.

Roberk would they be bothered to scam me if I would to trade with a £5000 and make about £100 per day? I would think that it's to small to even bother with. Also do you trade in Globex.

So correct if me I am wrong: You can get scammed on forex, CME provide an exchange called Globex, which lets you trade futures on Forex? Is that correct, if so could anyone tell me how I could open an account with IB, what would be the minimum amount of money I would have to put in, and what acount would I have to choose.

Everyone has been a great, great help so far, I feel as if I am asking for too much

 

[rossored]

Yes they would be bothered to scam you if you took £100 a day, believe it or not.

CME do provide an exchange called GLOBEX on which you can trade FX futures - EUR/USD, for example, which is the most worthwhile.

To open an account with IB, visit thier website - www.interactivebrokers.co.uk - to open an account you will need a minimum of around £1500, and to trade EUR/USD its currently $1650 per contract during normal EST trading hours.

Contract information is available on the IB website under Resources/Margin/Futures Maintenance, and scroll down until you see "Globex".

 

[ilia king]

Thanks rossored, but where would be the best place to open a Globex acount could I open it in CME.

Also where do they get the underlying securities price from? To determine the future. I have not traded futures but have done in covered warrants and options - are the any different.

Also would anyone know where I could find a website containing information about Globex, IB?

Thanks for all your kind replies - I have found every single one very usefull

Cheers

 

[ilia king]

PS - would anyne have a chart of the price of the futures compared to the actual EUR/USD

Many thanks once again

 

[JonnyT]

www.cme.com
www.interactivebrokers.com

JonnyT

 

[bored]

I've just looked at the IB site (I already trade with them) and noticed that Globex offer two instruments which seem to be the same thing -

EUR, euro fx
GE, globex euro dollar

Does anyone know the difference between the two.

 

[ilia king]

What would be the best company to go for in Forex, to open an account, IB?, GCI? Oanda? Fxcm?.

Any comments apprecitated - I would like to trade forex for a little while just to get a taster, then move to GLOBEX

 

[fillyerboots]

Bored

GE, Eurodollar is not an FX product. It is a short term interest rate contract that helps investors hedge US interest rates.

 

[ilia king]

Has anyone used Oanda? Is it better than IB?

 

[ilia king]

Are there any good add-ons for the TWS in IB for Forex, like Tahoe charts, IB Charts??

 

[oatman]

Any contract you are receiving a feed for in IB, you can put into any IB compatible chart package. I run Sierra.

 

[ilia king]

Oh, so could I import the data into Tradestation and TWS at the same time?

 

[FibCouple]

I've just looked at the IB site (I already trade with them) and noticed that Globex offer two instruments which seem to be the same thing -

EUR, euro fx
GE, globex euro dollar

Does anyone know the difference between the two.

Hi Bored

EUR is the Globex version of EUR/USD.
Eurodollar is an interest rae instrument I think.

Regards

 

[neil]

Difference

Has anyone used Oanda? Is it better than IB?

One trades the spot market ( spread 3 to 4 points or more)

The other trades CURRENCY FUTURES...major pairs about 1 point spread.

So its like comparing apples and oranges.


Visit the CME site to read up on futures.

 

[rossored]

Ilia, if you're new to the industry, it would probably be best not to trade Currency Futures just yet. Each pip is $12.50+commission ( thats each 0.0001 ) so it can be pretty expensive. Try out FXCM or Oanda first.

I've just switched to FXCM rather than IB currency futures as the position size is too large for me at the moment, and I cant trade it without worrying about the size - which isnt a good idea imo.

 

[neil]

Ilia, if you're new to the industry, it would probably be best not to trade Currency Futures just yet. Each pip is $12.50+commission ( thats each 0.0001 ) so it can be pretty expensive. Try out FXCM or Oanda first.

I've just switched to FXCM rather than IB currency futures as the position size is too large for me at the moment, and I cant trade it without worrying about the size - which isnt a good idea imo.

Good point Rosso.

Nice place Cambridge.

 

[roberk]

Just to note that IB will soon be offering Forex as an additional product. No word on what the minimum size will be.
One of the good things about forex is that the stops are usually guaranteed. Sometimes liquidity can disappear on currency futures and make it expensive to get out of a trade.

 

[ilia king]

Thanks everyone, I have been trading for 1 month now with FXCM and its very good.