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Interbank FX (IBFX) - Open Discussion Board





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trader

February 27, 2009

I just filled out an application for an account with interbank fx. I had to read a paragraph and check off that I read it. That paragraph stated that they will be taking the opposite side of my trades and that they may delay processing of my trade while some department examines it. Also they may give me quotes different than some of their other customers. Sure sounds like a dealing desk and not an STP as you have listed.

BrokerGuru

February 27, 2009

Let me quote them:
"...IBFX’s unique platform enables both retail and institutional customers alike to trade forex without the hidden obstacles or potential conflicts of interest of a dealing desk broker. Because IBFX currency prices are derived from its financial institution liquidity providers, its price feed most accurately reflects the natural movements of the interbank FX market. In addition, IBFX trading profits are generated exclusively on its markup to institutional prices, and never from a dealing desk trading against customer positions." (http://www.ibfx.com/company/newsmedia/pressrelease/2008/08_02.aspx)

They'll take the quotes from the interbank and then based on that make their own markups and quote you a spread. This is a hybrid model of an STP, you won't see a real interbank dealing rates, since you'll be trading on quotes form IBFX, but they won't trade against you using a dealing desk.

trader

March 13, 2009

IBFX is market maker, his spread is widen like crazy, slow execution on SL

BrokerGuru

April 16, 2009

If you trade live, you definitely have facts.

I can only post the answers I got from IBFX today:

My questions: Do you have a dealing desk? Are you a market maker?
IBFX: No, we do not have a dealing desk. No, we are not a market maker. We have 7 liquidity providers(banks). They can take the other side of your trade. They will send bids and offers. The best price is what you will be quoted minus a small amount of the spread.

trader

August 3, 2009

I seem to be having an awful problem with the IBFX server connections - when I should be trading my system is getting "no ping response" returns and then cannot connect messages (puzzling when my other net connections show no break at all), am I being singled out or is this a general problem? I have had this question totally ignored by IBFX so I am trying to discover others who are going through this, and possibly their locations (to see if there is a pattern).

BrokerGuru

August 4, 2009

My best guess is that it is the first week when we have new NFA rules in effect. Earlier before July 31st, 2009 IBFX stated that the functionality of their MT4 platform will remain unchanged and old trading EAs, strategies, stops etc will work as usual for their clients. While to meet the NFA FIFO standards IBFX will use their backoffice system for daily and monthly statements for FIFO offsetting procedures. Well, I'm sure as a client you've heard about it already.

May be there some problems with their "systems", which they don't want to report about... after all NFA is watching from above.

BrokerGuru

August 4, 2009

Another guess, that clients at IBFX has been recently shaken by NFA fines against Interbank FX, which created some emergency and extensive position management resulting in multiple order execution requests across numerous trading accounts.

Here is the story:

NFA fines, Interbank FX LLC

July 30, Chicago - National Futures Association (NFA) has ordered Interbank FX LLC (Interbank) and its principal, Todd Crosland to jointly pay a fine of $225,000. Interbank is a Futures Commission Merchant and Forex Dealer Member of NFA, located in Salt Lake City, Utah. The Decision, issued by NFA’s Business Conduct Committee, is based on an NFA Complaint filed in July 2009 and settlement offers submitted by Interbank, Crosland and Amanda Albretsen, also a principal and former compliance director of Interbank.

The Committee found that Interbank, Crosland and Albretsen failed to implement its anti-money laundering (AML) program and failed to adequately supervise its electronic trading system. Additionally, the Committee found that Interbank, Crosland and Albretsen failed to adequately supervise the solicitation of non-Member solicitors who used deficient promotional material. The Committee also found that Crosland failed to supervise Interbank’s activities.

Interbank and Crosland must also submit to NFA within 180 days a final independent review of its electronic trading platforms conducted by an outside party to ensure that Interbank’s electronic trading platforms are in compliance with NFA requirements. The charges against Albretsen will remain open for one-year and will be dismissed if Albretsen is not charged by NFA for failure to supervise during the one-year period.

trader

January 16, 2010

I have been trading with IBFX for more than a year and so far that "one pip of spread"they are offering is not for real. in every market conditions I have always had 2 pips.

trader

February 2, 2010

IBFX is not any more STP brokerage.

BrokerGuru

February 3, 2010

Thank you.
I've researched on the subject and here is the official answer from IBFX:

"The NFA’s definition of a dealing desk is a broker who holds clients' trades. We do hold some trades--mainly the trades for very small lot sizes of about 0.01 lots; and the NFA's definition of "dealing desk" is all or nothing. That said, IBFX is obligated to say that it is a dealing desk in compliance with the NFA's definitions of "dealing desk" and "non-dealing desk."
However, the general public perception of a dealing desk is a broker that sets its prices based on clients' open positions. We do not set prices based on client positions, and we do not trade against our clients."

An IBFX's representative continued:

"I can explain that basically the requests you make to open or close your trades on your platform essentially get confirmed with liquidity providers through IBFX's technology. So the main thing I am trying to emphasize is that IBFX does not trade against our clients and does not interfere with the pricing, but we do have to tell you we are a dealing desk because we hold some trades.
That's also the reason why we cannot say we are a straight-through processor because some trades - the small ones for 0.01 lots- don't go straight through."



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