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.
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.
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.