Warning about Interbankfx - page 6
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In all fairness, I think they had sent out emails informing the customers that IBFX will be closed for a certain period of time on the July 4th. If you are concerned about your position, you should have closed it out before they stopped their dealing. I think if the broker gives you advanced warning, then it becomes the client's choice whether he wants to keep a position on or not.
By the way, if you really want to be treated fairly, then I think you should look at trading the currency futures traded on CME. That way, you are not trading against a bucket shop. The problem there is that you need a lot of capital to trade those contracts, even the minis.
yes I received a letter about them closing. The letter was received by email at 8:42 pm 7/3/06.
Due to the July 4th holiday our hours will be as follows:
We will be open for trading on Sunday the 2nd and Monday the 3rd, normal hours. We will be closing for trading at 8:00 a.m. EST on July 4th and reopen at 8 p.m. EST that afternoon. We will have some Customer Service Representatives available during these hours at 801.733.6910 or 866.468.3739
The Interbank FX Team
Since I don't know what minimum notification requirements if any they are required to meet I suppose I get to gamble with them until I find out and/or I find a broker that gives me greater UP FRONT clarity about their operation rules. One thing is for sure...I won't just let an EA run unattended before I find out the rest of the days that are closed. Perhaps we need to build in "off days" to our EA's so we can make them broker specific?
I have not been able to find any link on their website outlining days they are closed...guess it's time for another chat.
Closure Days for IBFX
Please wait for a site operator to respond.
You are now chatting with 'Customer Support'
Customer Support: Hello, My name is Jen, How may I help you?
you: I have been trying to locate the page on your website that outlines what days you are closed and I can't locate it. Would you please tell me the exact Url?
Customer Support: The following are the days that Interbank FX
Customer Support: will be closed to trading.
Customer Support: New Year's Day January 1
Customer Support: Martin Luther King, Jr. Day January 20
Customer Support: Washington's Birthday February 17
Customer Support: Good Friday April 18
Customer Support: Memorial Day May 26
Customer Support: Independence Day July 4
Customer Support: Labor Day September 1
Customer Support: Thanksgiving Day November 27
Customer Support: Christmas Day December 25
you: Thankyou for that information but you told me earlier today that it is on your website. I would still like the web link to the page that is listed on please.
Customer Support: On our website, on the bottom, it says the 4th of July schedule.
you: is it on this page?
you: http://www.interbankfx.com/
Customer Support: Yes on the Bottom, Where it says, "What's New"
you: i see but there isn't a full list on the website anywhere of these other days closed?
Customer Support: We just post up coming Holidays.
Customer Support: But, I have listed our closed Holidays above.
you: ok, how soon before the actual Holiday do you post the notice?
Customer Support: At least a week notice.
you: are the hours of your closures on these other days similar to today's downtimes?
Customer Support: Yes
you: are they exactly the same?
Customer Support: But, the exact times will always be posted for your convenience
you: What I'm wondering since I rely on expert advisor automation is if I can program the closure times into the program with precision in advance for when you will be closed
you: are they the same exact hours each closure?
Customer Support: As I said the time are similar.
Customer Support: But the exact times will be posted, 1 week notice on our website.
you: so the exact hours may vary?
Customer Support: But, the exact times will always be posted for your convenience
you: ok I take that as a "yes" is that correct?
Customer Support: Right, Yes
you: ok, thankyou for the information
....I verified that the http://www.interbankfx.com/PressRelease/PressRelease10.php
link is there.
I don't know but some experienced trader on another message board told me this, more or less:
On the real interbank market the standards you need to fulfill to participate are very high. Much too high for at least a big number of forex "brokers" (market makers). So they can't do that.
That does not mean that they don't pass orders through to the market in some way, but not to the interbank market. Maybe the work together with a bank or some banks, i don't know.
I don't really know either what they mean with trading against their clients. If it means that they take the other side it does not have to be a problem for the customer. As long as they don't go broke and you lose your money or as long as they don't give bad quotes in order to "cheat" you, run your stop losses etc. it does not hurt.
I think one broker where nothing of this happens is Interactive Brokers. If i am correct then they are a real broker, not a market maker, that means you don't do business with Interactive Brokers but with a bank. Interactive Brokers only connects you with the bank. And after the deal you can see which bank it was. But there are no mini lots there, i think 50'000 is the smallest.
Forgive my lack of knowledge on this subject... I've noticed that it apears most clearing firms in someway claim that they do not trade against the client and that also claim to pass your trades through to the so called "Interbank Market" (or buy the said currencies themselves, which the client orders). But I'm just curious whether or not someone or some entities (Some overseeing body) have actually evaluated the truthfulness of this as I feel I have reason to suspect that for the smaller orders they may take the other side of your trades as it is less hassle to go actually go onto the Interbank market?
Hi Typhoon,
It is my understanding that NFA actually requires brokers to protect their clients by hedging at a certain threshold, so in essence brokers are required to hedge - thus they are required to trade against you at a certain point (hence - "hedge") - So the amusing part is : they all say that they dont trade against you and they are licenced - But licence means "hedge"=trading against you at a certain point ......just ask them and they will admit that.
Why does hedge mean they trade against you? I think it doesn't. The way i think they do it is, if more customers are long EURUSD than short EURUSD then the broker will open a long position in EURUSD in the real market too. So if the customers win the broker will be able to pay their wins with the broker's own profit.
The broker will be positioned in the same direction as the customer so they both want prices to go in the same direction.
It's not against us, it's toghether with us, in a way.
Why does hedge mean they trade against you? I think it doesn't. The way i think they do it is, if more customers are long EURUSD than short EURUSD then the broker will open a long position in EURUSD in the real market too. So if the customers win the broker will be able to pay their wins with the broker's own profit.
The broker will be positioned in the same direction as the customer so they both want prices to go in the same direction.
It's not against us, it's toghether with us, in a way.Hey Eric,
1) They will admit this, just chat with them.
2) Just read the NFA rules.
3) The brokers pay their bank 1 pip and charge 2 pips of us. So win win for them.
4) When most are long - they go long at point x - and point x = NFA requirement - and at point x the brokers are all against those who are in opposite direction - and this is trading against us !!!!!!
5) Again just ask them - they will admit that - they are required to by law.
Why the NFA create such a regulation like that? So that's why we can enter the market anytime we want and quit anytime we want?
1 thing to consider by choosing broker find 1 u trust 1 who dont disconnect clients even only for small time of period ( disturbing EAs ) and 1 where u would feel comftable trading without stops. this cash market is full of unhonnest brokers currently i have skipped MT4 there is just sommething i dont like with most of theese mt4 brokers.
all the best to mt4 users
sailor