FXTrader
W E B I N A R    N O T E S

 

Quick Links
There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.

 

Overview

With IB’s Universal Account you can trade foreign exchange worldwide from a single account with the TWS FXTrader, an order management tool that’s been designed specifically for Forex traders, with a world class competitive platform and quality of market for your Forex trades.

This completely customizable feature provides an optimized trading interface that can be modified to suit your trading preferences.

A significant difference from many other FX platforms is that Interactive Brokers LLC (“IB”) remains a completely neutral agent and does not take the counterparty of the other side of the trade. Our only priority is to execute the order at the best possible price.

So we use the same smart routing technology as for US stocks and options by continuously monitoring the quotes of various liquidity providers, and routing the order to the provider who at that moment in time appears at the top of book.

 

Interbank Platform

We provide two vehicles for the exchange of currencies, IDEALPRO, interbank platform, which allows a customer to trade Forex and IDEAL which allows a customer to convert their balances from one currency to another.

IDEALPRO is for larger orders – greater than 25,000 USD equivalent which are routed to the interbank market. IdealPro is actually a SMART routed venue where we consider each liquidity provider as an exchange.)

IDEAL is our small order book facility for orders under $25,000 USD or equivalent and should be utilized to convert funds -- the closing out currency balances you get when trading products denominated outside your base currency.

Note: Liquidity is provided by Timber Hill LLC, an Interactive Brokers LLC affiliate, and other IB customers. Bank prices do not feed this venue.

The main function for Ideal is to convert those funds back to your base currency. ie: trading in Euro stocks or Euro futures generates a Euro balance (+ or -). To convert it back to US dollars use Ideal.

 

image

 

Costs to Trade at IB

 

Access to FXTrader

Universal Account features that include trading products outside your base currency and FX trading permissions are not available for cash accounts. Since a margin loan is created in the non-base currency, to trade currencies you will need a margin account for forex trading. Account permissions can be upgraded through Account Management.

 

TWS FXTrader

 

Trading Cell Components

FXTrader displays a 3x3 grid of "trading cells" designed to complement the way an FXTrader operates, with the standard elements of our order management modules provided at the top. The page is completely customizable, allowing you to increase or decrease the number of cells in the grid, invert a quote, change colors, and modify the way price and size is shown.

The trading cell in FXTrader has many helpful features including:

 

Create Orders

Market is structured like an ECN with an order book that allows you to set orders away from or between the markets, and trade with other IB clients as well as with the liquidity providing banks.

Order Limitations

 

image

 

 

Order Types

Order types available are dependent on the IDEAL/IDEALPRO destination. Refer to Exchange page Global tab for specifics.

 

Order Management

 

Order Presets

To trade more efficiently you can predefine commonly used order criteria as defaults. A "default" order parameter automatically appears on your order management line when creating an order. The system uses default values to save time and to expedite entering orders. So instead of a blank order management line, when you create an order each field is pre-filled with a default value.

 

image

 

Currency Settlement Holidays

 

Account Window Values

 

image

 

Market Value

Real-time FX position value displays in the Cash field of the Market Value section.

 

image

 

FX Portfolio

The FX Portfolio section displays a “virtual” position – a specialized view created for FX traders and does not represent your actual cash balances for the associated currencies which can be found and traded in the Market Value section of the account window.

Important - If you are tracking the contract style P&L values in the FX Portfolio be aware that doing a currency conversion will change the ‘virtual’ position.

Since this window tracks currency trades, a currency conversion of your trade gains or losses back to your base currency will distort the virtual position tracking.

If you are tracking the ‘virtual position’ values, a currency conversion will appear as if you increased/decreased that virtual position.

 

image

 

Please note that this feature does not implement any changes to your portfolio. It is designed to allow you to separate out currency exchanges from FX position values.

Note: FX Portfolio in order management tab is linked to the account window which updates every 3 min., whereas the position P&L in currency cell updates real-time.

 

Configuration

FXTrader is customizable on many levels, from the color and number of cells to the method used to calculate order quantity.

 

Right Click Menu

Additional functionality and navigation shortcuts provided with a right click in the cell:

 

image

 

Hotkeys

Several Hotkeys have been pre-set. To view the keystroke combinations use Ctrl+H

 

image

 

Chart Currency Movements

To access charts from the FX Trader use the right click menu on the cell you want charted.

 

image

 

 

There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest charges on borrowed funds must be considered when computing the cost of trades across multiple markets.

Any symbols displayed are for illustrative purposes only and do not portray a recommendation.

Interactive Brokers LLC is a member of NYSE, FINRA, SIPC