Traders buy or sell the base currency and sell or buy the quote currency. To score each test, the tests were divided into three separate groups and scores were given for the time taken to connect with each support representative and the ability of each representative to professionally and thoroughly answer each question. This particular display format is intended to accommodate a convention which is common to institutional forex traders and can generally be disregarded by the retail or occasional forex trader.
Interactive Brokers Competitors
A forex FX trade involves a simultaneous purchase of one currency and the sale of another, the combination of which is commonly referred to as a cross pair. In the examples below the EUR. USD cross pair will be considered whereby the the first currency in the pair EUR is known as the transaction currency that one wishes to buy or sell and the second currency USD the settlement currency.
A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as reference is called quote currency , while the currency that is quoted in relation is called base currency.
In TWS we offer one ticker symbol per each currency pair. You could use FXTrader to reverse the quoting. Traders buy or sell the base currency and sell or buy the quote currency. The price of the currency pair above represents how many units of USD quote currency are required to trade one unit of EUR base currency.
A buy order on EUR. Orders directed to IDEALFX that do not meet the minimum size requirement will be automatically rerouted to a small order venue principally for forex conversions. As a result, traders may have to adjust the currency symbol being entered in order to find the desired currency pair.
This is because this pair is quoted as USD. Depending on the headers that are shown, the currency pair will be displayed as follows; The Contract and Description columns will display the pair in the format Transaction Currency.
The Underlying column will display only the Transaction Currency. Specify the quantity of the trading currency you wish to buy or sell. The quantity of the order is expressed in base currency , that is the first currency of the pair in TWS. Interactive Brokers does not know the concept of contracts that represent a fixed amount of base currency in Foreign exchange, rather your trade size is the required amount in base currency.
For example, an order to buy , EUR. Orders may be placed in terms of any whole currency unit and there are no minimum contract or lot sizes to consider aside from the market venue minimums as specified above.
A pip is measure of change in a currency pair, which for most pairs represents the smallest change, although for others changes in fractional pips are allowed. To calculate 1 pip value in units of base currency the following formula can be applied:. IB's trading software reflects FX positions in two different places both of which can be seen in the account window. The Market Value section of the Account Window reflects currency positions in real time stated in terms of each individual currency not as a currency pair.
One interesting feature with order pre-populating is that you can repeat this process and have several orders that have not yet been transmitted but are pre-filled and ready for submission. Besides exchange-traded forex futures and forex options, Interactive Brokers offers two types of spot forex contracts: This is a neat feature that helps uphold transparency with regard to price execution.
Getting the platform configured is also a clean experience, as Interactive Brokers provides over a dozen default layouts that can be used, including one for forex trading. Shifting to charting within the TWS desktop platform, there are available studies that can be added to a chart, which is far above the industry average of 42 compared to other brokers reviewed, and only surpassed by thinkorswim by TD Ameritrade, which has , followed by Dukascopy Bank with , and then City Index with The drawing tools were not as extensive, with only 10 to choose from, and while the number of customizations that can be made in the TWS platform is impressive, the complexity and long lists of possible configurations can be intimidating to unseasoned investors.
Moving to the web-based version of the TWS, Interactive Brokers is light compared to the desktop version, as far as functionality goes.
It comes equipped with everything traders need to go about their business, specifically trading, but lacks the depth of its desktop counterpart. Unless you cannot access the desktop, or you prefer a more simplified trading environment, then web-based TWS is worth checking out. Otherwise, stick with the flagship desktop TWS platform. The advanced features of the desktop version are positive attributes compared to other platforms from multi-asset brokers that lack depth of options, such as Plus or XTB.
TWS finished Best in Class in our review. Interactive Brokers offers several mobile applications, including its TWS mobile trading app for Android smartphones and tablets as well as all iOS devices, including iPhone, iPad, and the Apple Watch. My testing was conducted using the Android smartphone app. Charting within the mobile app had nearly one-third less indicators than the desktop platform, but it still packed in 70 indicators, which is far more than most brokers offer in their mobile apps or even on their desktop and web platforms.
Surprisingly, one drawback was the lack of drawing tools, including the ability to plot a trend line. Otherwise, Indicators were easy to add, and can be saved as a template for quick analysis on other charts. Charting aside, the TWS mobile app is easy to navigate and offers a good range of sophisticated tools, ranging from the trading assistant to customized scanners, and most recently the iBot chat bot.
Other parts of the app, such as the complex order dialogue and watch list management, are not as easy to figure out, yet provide sophisticated functionality such as multi-leg options trading. Overall, Interactive Brokers provides a great mobile experience that competes among the best multi-asset brokers in the industry. Besides the algorithmic-driven orders, Interactive Brokers offers multiple options for algorithmic traders or those who wish to connect programmatically via API using various protocols across its trading platforms, including the FIX CTCI platform for traders who need to build their own trading systems.
In , Interactive Brokers launched Bitcoin futures, helping to position itself to cater to the growing demand from traders and investors who look for exposure to speculative digital assets within their portfolios. While futures are offered, CFDs are not, which reflects the conservative focus of Interactive Brokers management.
Until cryptocurrencies are well established, we do not anticipate further support beyond futures contracts. With nearly every type of forex instruments available across 85 currency pairs, including spot, forwards, futures and options trading, Interactive Brokers provides a diverse and bespoke offering for currency traders, on top of over CFDs across global markets.
For low-volume traders and beginners, I do not recommend Interactive Brokers. Even though experienced traders will require time to learn the TWS platform, Interactive Brokers is a great choice for professional and active traders. For our Forex Broker Review we assessed, rated, and ranked 43 international forex brokers. Each FX broker was graded on variables. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry.
Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 19 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative. For accounts that are not denominated in USD, commissions are converted from the USD trade value and then charged to the base currency of the account.
Forex commissions are calculated as a percentage of the value of each trade you place, depending on the applicable commission tier — where higher volume traders are rewarded with steeper discounts on commission fees. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work.
If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page. Likes Regulated in major jurisdictions and publicly traded Extensive range of global markets and asset classes Bitcoin futures trading supported Competitive fees and discounts for high-volume traders.
Dislikes High account opening minimum deposit Retail forex only offered to non-U. Interactive Brokers Competitors Select one or more of these brokers to compare against Interactive Brokers.
Best in Class 5 of 43 Overall.