OK, first of all ,this post is not meant to point out any fishy scam of retail FX broker like this one. Price feed and trade execution of IB are mostly flawless, I have no complaint about that, at all. Yes, the learning curve is steep in order to master the trading platform, TWS. To be honest, I hated it at first, however, after spending time watching IB webinars, and playing with the platform, I found the platform to be pretty stable and reliable.
Now, back to spot FX trading with IB. I found it to be a little bit troublesome, and, maybe, painful. IB charges commission for every trade. This is fine. The painful part of it is, if the underlying currency of the traded currency pair is different from your account base currency, you will have to convert your P/L manually back to your account base currency. And, yes, the conversion is considered as a new trade, and commission is charged. For example, you have just traded USD.JPY, and your account base currency is AUD, then you will have to convert your P/L in JPY to AUD once the position is closed.
Try making a couple of trades in IB paper account, and have a look at your account balance, you will understand what I am trying to say.
Well, overall, the commission might still be considered as low, but the whole process is a hassle. I am not sure if there is any workaround for this issue that I might be missing out. Shoot me a comment if you are an experienced spot FX trader with IB.
A broker with good reputation, financial strength, solid platform(provided you know how to use it), and easy access to any market in the world, I feel comfortable trading with IB, however, for spot FX trading, I am rethinking now…..