IBFX.com Review – A Company that Proved Regulation Means Nothing

For the last several years, Interbank FX (IBFX) has been a rapidly growing Forex broker in the United States. IBFX (member of the Monex Group) is notorious for having a huge, multi-bank liquidity pool. As a variable spread broker, it offers low spreads to its traders. With its comprehensive website, IBFX is easily accessible to traders who are just starting out. Their site contains a great number of explanations and helpful tips along with definitions of terms, all pertaining to the Forex market.

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TradeStation Acquires IBFX

IBFX persisted on selling its business and in November of 2011 was bought out by TradeStation. TradeStation was acquired by the Japanese Monex Group a few months prior to that. Once an acquisition agreement was reached, IBFX was purchased at approximately $17 million. At that time, IBFX’s average trading volume was $1.2 billion per day. Although IBFX had 27,000 funded accounts, it continuously lost money since 2009. Because IBFX was unable to regain its profitability, pressure from Spectrum Equity brought on a force to sell this entity.

TradeStation, which once went by the name TradeStation Securities is based in Plantation, Florida. It is an online Forex brokerage service notorious for its electronic trading and analysis software and furnishes its platform to active trader and specific institutional trader markets. Also featured with the TradeStation is electronic order execution. Likewise, this platform makes it easier for traders to design, test, optimize, watch, and automate their individual Forex trading strategies, futures, options, and equities.

IBFX Claims to Prospect Traders

According to their site (http://trade.ibfx.com), IBFX states that they are number one for performing the following functions: execution speed, processing trades according to quoted prices, and being best in more Forex categories than any of their competing brokers. When capturing a trade, high execution speed is crucial. Hence, traders can swoop up trades without waiting for a human to process their request. Trades are often rejected due to price changes that occur once an order has been placed. By minimizing latency, IBFX assures that this won’t happen to their clients.

Again according to what they claim, IBFX was rated best among surveyed traders for superb trading tools and robust platforms. This includes reliability and premium features as well as charting and effective usability of their platforms. Since they provide a large library of indicators, custom tools, along with Expert Advisors (Eas), they were able to improve MetaTrader 4 greatly. Also, considering their multi-bank liquidity and unsurpassed execution speed in addition to great back-end rates on executions, IBFX claims to provide an MT4 trading experience that cannot be matched by their competitors.

Do you need proof of what they claim is to be true? If so, their site has interactive buttons of functions you ought to see for yourself, under the section Why IBFX.

Platforms IBFX Uses

MetaTrader 4 (MT4), a very popular trading platform, is widely used by IBFX. It enables traders to either import or script expert advisors along with handmade indicators. By using MT4, traders supposedly have the greatest flexibility available in the foreign exchange marketplace. Because one of MT4’s best attributes is charting, traders can be aided with its superb charts. Boosting at a 99.9% execution rate, not only is MT4 fast, but also rarely ever requotes. In fact, the MT4 provides standards by which all other trading platforms are based upon. With the back-end software that IBFX utilizes, traders truly benefit from its quick execution rate.

TradeStation is a second and popular platform offered through IBFX. This award winning platform offers you the tools you need to execute intelligent trades. Because of its ever-changing market scanning and chart pattern recognition tools, you will find new opportunities awaiting you. Its included tools such as Scanner, Hot Lists, and Radar Screen, enable you to watch changes in foreign currencies and discover new opportunities throughout the trading day.

Likewise, you can analyze the market with TradeStation’s fully customizable back-testing and analysis of Forex along with its superb ability to produce accurate charts. Also, you can keep up-to-date with its research and news capabilities.

Spreads and Promotions

According to IBFX website, spreads that IBFX charges on trade transactions are simple and best of all, there are no commissions. With that in mind, accounting for trades is easy. However, the spreads are variable and thus, when conditions are normal, they are very small. For example, it is typical to see a 2 pip spread on the EUR/USD (which is too much for this currency pair as far as I know). Still, during the most volatile trading conditions, the markets have a tendency to widen.

Promotions offered by IBFX are continuously changing as it creates a new one each month. Currently, they offer new traders a 10% bonus on for deposits that exceed $2,000, but that is likely to change over time.

Download the IBFX Platform

Beginner to advanced traders who become clients of IBFX have an option: to open a Forex demo account. Those who do are able to experience all of MT4’s benefits while experimenting with their trading strategies under live market conditions. As they do, there is by no means any risk involved. The demo account was created especially for all traders to experience the IBFX trading platform and also leverage the full suite of their powerful trading tools. Also, customers who use demo accounts are under no obligation to fund their personal accounts. If you want to see how the account works, click the Download FREE Demo button and try it out on your PC.

This is not a big advantage these days because almost all brokers, from the worst to the best one, offer unlimited demo trading and free platform download.

Customer Support

Clients who are in need of assistance or support can obtain it via telephone, email, or live chat. IBFX also has international phone lines to enable people to reach customer service around the clock, providing that the Forex marketplace itself is open. There are staff members who speak many different languages to provide support in most all countries. Overall, IBFX has won awards for its premium customer support service and its ability to resolve a variety of issues.

Customer support is attainable in the following cities, continents, and countries: US, China, Australia, United Kingdom, Hong Kong, Taiwan, Malaysia, Indonesia, South Africa, Singapore, and New Zealand.

Pros and Cons of IBFX

As a person who has no experience with this broker, the below pros that attract your attention if you check their website and demo platform:

  • With its variable spreads, you can be assured they are tight. This reduces your expenses in executing transactions.
  • Automated processed requests ensure that traders need not be delayed waiting on their broker to respond.
  • Because the MT4 platform is versatile, you can make it grow with you plus customize it to fit your personal trading style.
  • You have access to virtual private networks (VPNs).
  • You will find their deposit process to be fast and easy.
  • Highest ranking by offering more categories than all other Forex brokers.

However, the below cons also make you step back even before you sign up for an account:

  • IBFX limits its traders to Forex. Hence, if you wish to trade commodities, stocks, etc, you will have to find another broker to work with.
  • If you are aiming to scalp the news announcement during news events, you will encounter issues with variable spreads.
  • Hedging is not allowed through IBFX.

Since most traders are already familiar with MT4, it is the most ideal platform out there. The number of free add-ons is another attractive feature MT4 has to offer. But MT4 is a platform that almost all broker support these days.

Deposits can be made via credit card or even mailed in checks. Also, the broker will return your profile in little time with the same card or check you used. As a trader, you can also obtain their debit card which enables you to obtain instant access to your account at any time.

Known to be a prominent broker, especially in the United States, IBFX (now TradeStation) is regulated in this country and also Australia. However, IBFX is the example of a highly regulated broker that has a terrible performance. It means regulation doesn’t do anything when a broker doesn’t want to offer a fair service.

There is no doubt that IBFX is a market maker. There are so many signs that indicate this. You don’t see any problems as long as you are not profitable and you lose. But as soon as you become profitable you prefer to close your account and leave. Although I don’t rely on the reviews people post over the Internet, 99% of IBFX reviews are negative. Also traders are not happy with IBFX support. In general, I don’t think IBFX is going to survive for long if it keeps on performing like this. I hope they open their eyes and make some good changes as soon as possible.

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Published by

LuckScout Team

"Whether you think you can, or you think you cannot, you are right." - Henry Ford

13 comments:

  1. hi
    i had a questin on the article: the best book has not been written”. would you please have a look on it.
    thanks

    1. Hi Behnam,

      I don’t see any comment from you on that page. Maybe it is deleted by mistake or it went to the spam folder. Please kindly ask your question again.

      Sorry for the inconvenience.

  2. Hi, well done and thank you for this work. My broker charges 3pips on EURUSD. Please which broker is good and offer low spread.

  3. hi
    You are welcome. i will ask my question again. thanks for your kind
    i read all the articles about : inside bar , harami and inside day patterns. would you please have description on their differences?

  4. Hi,

    I dont know what went wrong with my trading style or with my broker CM.

    Initially, I was winning 8 out of my 10 trades. And I made very good profit. invested 10000$ and earned 14500$ in April-2015 month. I requested CM for withdrawal for 4500$. They did deposit in 5 days.
    After that, I don’t know, what went wrong with my trading style. Most(9/10) of my SL were hit, the pity thing is, after hitting SL, the market changes and goes towards my TP 🙁
    I know, I alone cannot be singled out by CM while the entire world have the same market prices.

    I just followed candle stick patterns of Daily TF.
    have 1:1 R:R and taken big lots (1 to 3).

    I lost 5000+$ this May month itself. Now I am afraid to enter. I dont know what went wrong with my trading style.

    1. Prakash,

      It is not that hard to find the reason of your most recent failures. Just share 3 of your most recent successful positions and 3 of the ones that hit the SL recently. I will check and will let you know.

      Also I want to know whether you took only one position when several setups formed, or you took all of them, according to the below article:
      https://www.luckscout.com/ -trading-big-drawdowns-and-the-solutions/

      Even before I check your positions, I know what the problem is. You had a good month and made profit. It made you excited and overconfident (you got emotional). You over-traded the next month and took the setups that were not that strong, to repeat your success this month too.

      I am familiar with this problem which is so common among novice traders. They make a mess after a successful month. But it is part of the learning curve and there is nothing to be worried about. Once you find your mistake, you are one step ahead.

    2. Here are my positions.

      CCY Dated Buy/Sell EP TP Amount
      ===================================================
      EUR/USD 04/20/2015 Sell 1.07376 1.069 200K
      EUR/USD 04/24/2015 Buy 1.08009 1.09097 200K
      EUR/GBP 04/30/2015 Buy 0.71982 0.72843 100K
      GBP/NZD 04/30/2015 Buy 2.00800 2.03188 100K
      ————————————————–
      CCY Dated Buy/Sell EP SL Amount
      ===================================================
      EUR/GBP 05/01/2015 Buy 0.73794 0.733 200K
      GBP/NZD 05/01/2015 Buy 2.02698 2.00286 200K
      USD/CAD 05/07/2015 Buy 1.1212 1.19446 100K
      EUR/CAD 05/13/2015 Sell 1.35533 1.364 200K

    3. Hi Prakash,

      I checked your positions.

      April:
      https://www.luckscout.com/wp-content/uploads/2015/05/EURUSDDaily-86.png
      https://www.luckscout.com/wp-content/uploads/2015/05/EURGBPDaily-21.png
      https://www.luckscout.com/wp-content/uploads/2015/05/GBPNZDDaily-2.png

      May:
      https://www.luckscout.com/wp-content/uploads/2015/05/EURGBPDaily-222.png
      https://www.luckscout.com/wp-content/uploads/2015/05/GBPNZDDaily-3.png

      These two don’t look correct:
      USD/CAD 05/07/2015 Buy 1.1212 1.19446 100K
      EUR/CAD 05/13/2015 Sell 1.35533 1.364 200K

      I can almost see how you trade. Of course if you send me the last two positions once again, it will help me a lot, because those are your losing positions and it is important to know why you lost. You can save your account report and then copy/paste some of the rows of the table here, so that I can locate your position easily. I have explained how to do it here:
      https://www.luckscout.com/how-to-locate-your-previous-positions-on-the-price-chart-on-mt4/

      Now about the positions I located:

      Two of your winning positions (here), tell me that you have learned how to read the candlestick signals properly. Congratulations for that because it is a very important step for a trader. However, you can have a much better result with a proper risk management. The first position (short) had a too small profit, but the second position could have a much much bigger profit, but you got out with a 1:1. If you had a x5 profit at least, then you would lose with the first position (although you could get out at breakeven if you moved the stop loss to breakeven when the price reached the 1:1 level), but you would make x5 profit with the second position. It could not only recover the first position loss, but make a x4 profit more.

      The other thing I wanted to tell you is about the candlestick signals you take. Again, please look at your first 2 positions here. I like the second position, because I see so many good reasons to go long (although I don’t take these kinds of position personally), but the second position looks too risky (although you made money with it). It could be a losing position also, but luckily your target took you out before the price goes up strongly. Do you agree?

      I don’t see any problem with your broker so far, regarding these two positions, unless the start bothering with your other positions.

      Your third position (here) also looks not too bad. In this one your could get out with a bigger profit. If it was also a 1:1 position, then your stop loss was a little too wide. It was also a risky position because the previous candle closed right below the middle band. Luckily the next candlestick didn’t pay any attention to the middle band. Compared to your second EUR/USD position, this position was risky. Almost as risky as your first EUR/USD position.

      Your GBP/NZD position (here), look like a good position. I see the reasons you also saw you enter the market. With this one, you could also make a lot more profit. Do you agree?

      Your May Positions:

      1. In this one you entered when the market was overbought. You made a 1:1 profit with it, but it was risky.

      2. Was this position a long position? If yes, then it was a mistake to go long after such a strong upper shadow and Bollinger Upper Band breakout. If it was a short position, then you made profit, but I would not go short while bulls are still too strong.

      3. Is this information correct? It doesn’t make sense on the chart:
      USD/CAD 05/07/2015 Buy 1.1212 1.19446 100K

      4. It this position a short position really? It looks like a long position on the chart:
      EUR/CAD 05/13/2015 Sell 1.35533 1.364 200K

      Please answer my above questions.

      Conclusion:

      1. You are good in reading the candlestick signals. You could have a much much better price with a wider TP. You could secure your position by moving the SL to breakeven when the price reaches the 1:1 level.

      2. Some of your April position were risky. You were lucky that they also hit the TP. It doesn’t mean it will be always like that. Sometimes, all these risky position, and even the good positions can go against you. You have to prepared for it and secure yourself.

    4. Thanks for detailed review. Really grateful to get such a mentor.

      I am using CM trading platform not MT4 and I am not able track back my closed positions in it. I will check with CM team and update you with pics.

      Actually, I decide my SL and TP to the high/low/open/close of some previous CS, which approx comes to (Risk:Reward) 1:1 to 2:1. This approach was working good(may be lucky) in April but not anymore in May.

      I will read and understand my win/loss positions again and answer your questions.

      thank You,
      Prakash.R

    5. You are welcome Prakash.

      Please let me know when you hear back from them. I can check your losing positions precisely and tell you whether it was the broker’s fault that you lost or you would lose them anyway.

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