Interactive Brokers to discontinue Forex margin trading for U.S. retail traders

4 stars based on 48 reviews

Interactive Brokers is one of the largest online discount brokers in the world. They average over 1, client trades every trading day and offer an incredibly wide array of products to trade. A lot of professional traders, hedge funds, and other institutions choose Interactive Brokers as their broker for stocks, options, futures, and forex in the US and abroad. We can see why. On the surface, Interactive Brokers looks like a great choice.

They have very cheap commissions and offer access to products that other brokers do not, like US dollar futures that trade on the Mexican Derivatives exchange or options on Euro-Bund futures. For one, IB charges for order cancelations. The exact pricing structure for canceling orders is opaque and not easy to understand.

Order cancellation fees are off-set be executed trades, but the problem occurs when total cancelled orders exceed the number of executed orders for the day. Very few brokers charge for oder cancelation, and IB is one of them. At The Options Bro, we like to put on a lot of futures positions and short options positions, and IB was not happy with this. IB is not paying employees to actively look at the risk of all of their client accounts. Instead, they have an algorithm that determines the daily exposure fee pricing and charges interactive brokers margin forex trading reviews accordingly.

We held this exact same position with three different brokers and there was no problem with the margin risk team at all — IB was the only brokerage firm that gave us a hassle.

We this said, we had an account with Interactive Brokers for approximately three months, and it was the worst three months of our lives — seriously. Not only were we charged a bundle of stupid fees, but we also had several interactive brokers margin forex trading reviews our positions auto-liquidated that resulted in moderate losses.

In one instance, we had too many futures positions in our account, and our margin buying power temporarily went negative due to futures exchanges raising the margin requirements for their products.

IB did not provide us this courtesy. This causes more forced selling and an eventual account blow up. Options spreads can often be very wide for a number of reasons. Plus, if you think the daily exposure fee for out short futures position is a gyp, the daily exposure fee for short options positions is ever worse, because the theoretical losses are much greater — if not unlimited. Our aim is not to speak negatively of Interactive Brokers. Rather, we are merely trying to state the facts and expose the truth.

And in this case, the truth is that Interactive Brokers is simply a bad choice of options and futures traders. If you are an existing Interactive Brokers client, access the IB login interactive brokers margin forex trading reviews clicking the appropriate button below. Futures trading offers traders access to stock indexes, fixed income, currencies, and commodities globally. Are you wondering where to buy bitcoin futures?

Well, bitcoin futures are now interactive brokers margin forex trading reviews to trade on the CFE, the Options Bro December 13, Auto-Liquidating High-Risk Futures Positions We this said, we had an account with Interactive Brokers for approximately three months, and it was the worst three months of our lives — seriously. Options Trading Nightmare We were certainly not the first IB clients to have issues with auto-liquidation algorithms.

Short Options Positions with Interactive Brokers Options spreads can often be very wide for a number of reasons. Final Thoughts Our aim is not to speak negatively of Interactive Brokers. Futures Options and Futures Trading Futures trading offers traders access to stock indexes, fixed income, currencies, and commodities interactive brokers margin forex trading reviews.

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Interactive Brokers is a large financial trading company that has more than 39 years of experience in the brokerage industry; thereby making it one of the most experienced and established commercial brokers on the planet. Interactive Brokers started its brokerage business in and is primarily run out of its headquarters in Greenwich, Connecticut.

Interactive Brokers is not to be confused with a regular Forex broker that operates entirely through an online platform.

Instead, Interactive Brokers is an established company that is answerable to different regulatory agencies with regards to their brokerage practices and is held accountable for all of the transactions performed on the Interactive Brokers platform. Interactive Brokers is one of the very few companies that accept US traders along with traders from different parts of the world without any reservations.

IB is currently estimated to be transacting more than 1 million orders per day through its representative brokers, introducing brokers, and affiliates.

First of all, Interactive Brokers is a large financial company that follows the traditional brokerage model, which is designed to offer unprecedented market access to investors to trade the market as it is supposed to be traded. IB offers direct market access for its traders in place of a market maker platform, which is the most popular option in the market. The broker passes every order directly to the interbank liquidity provider, and all prices are transparent in nature without any intervention from the company or its employees.

The commission for each trade can range from 0. Interactive Brokers has made it convenient for their traders to access all the financial products through a single trading account, which ultimately helps traders to choose a market according to their specific requirements.

The safety of the broker is another reason that helps traders to enjoy complete peace of mind while depositing large sums of money, which seems to be the most common cause for anxiety among modern day traders.

The account maintenance cost is one of the primary drawbacks of an Interactive Brokers account, since; some traders might choose to trade in smaller lot sizes or might not trade as frequently as other traders. The Interactive Brokers trading platform is also designed in-house to offer access to the different markets through a single trading account.

Ordinary traders that are familiar with the existing Forex platforms will have to face a steep learning curve to understand the various features and functionalities of the IB Trader Workstation. Traders will have to spend quite a lot of time to get familiar with the platform before actually starting to trade.

Interactive Brokers mobile traders are also provided the mobile version of the IB Trader interface, which is individually customized for the iOS and Android devices. The company has put particular emphasis on developing the iOS Interactive Brokers apps, which have several advanced features such as security, in-depth chart and market information. Some of these functions are indeed missing from the Android apps, which suggest that IB is looking to capitalize only on the popularity of the Apple products.

Interactive Brokers is an international Forex broker that boasts of lower disparities between winning and losing accounts. Therefore, IB sees itself as a market leader regarding client satisfaction and customer retention, which is consistently proved by the significant number of positive reviews that are left by existing Interactive Brokers clients.

The trading conditions may seem out of reach for smaller retail traders, but the company does not target smaller traders due to the risk of losses due to high leveraged trading. Hence, if you are looking for more relaxed trading rules and lower entry costs, other broker options in the market may be able to fit your needs.