FAQs — Frequently Asked Questions

  • What is the foreign exchange market?

    The Foreign Exchange Market ("FX" or "Forex") is the simultaneous buying of one currency and selling of another. Basically, it is the trading of money — exchanging one country's currency for the other. The Foreign Exchange Market is the largest and most liquid financial market in the world. Daily average turnover regularly exceeds 1.5 trillion U.S. Dollars, dwarfing the daily volume all other markets combined.

    Historically, transaction sizes of less than $1 Million were rare and limited access to this market to national central banks, large commercial banks, multinational, and industrial consumers. Recent technological innovations have allowed competition to open this marketplace to the average investor. IBS Forex gives you direct access to the off-exchange Forex Market.

    In many instances, exchange rates between the world's currencies float freely with Foreign Exchange transctions always occurring in traded pairs, for example British Pound v U.S. Dollar (GBP/Dollar) or U.S. Dollar v Japanese Yen (Dollar/Yen). Multinational companies, banks, governments, small business and even individuals have a natural need to trade Forex. Foreign Exchange trading is essential in order for business to complete transactions in a global marketplace, whether it be for hedging foreign exchange rate risk or completion of an actual exchange of currency to pay for purchases priced in another currency. It is this natural necessity that creates risk and opportunity 24 hours per day, 7 days per week.

  • Who is IBS Forex?

    IBS Forex is the trade name under which Integrated Brokerage Services, LLC conducts its foreign exchange dealing operations. Integrated Brokerage Services, LLC. is a registered Futures Commission Merchant (FCM) as well as a member of the National Futures Association (NFA).

  • What is the minimum deal size?

    IBS will quote any size transaction. However, it is important to note that the markets become highly illiquid with transactions below 20,000 units of a given currency.

  • What are the margin requirements?

    Margin rates are subject to change without notice. Please contact our offices for current rate information.

  • How can I open an account?

    Call 1-800/691-2787.
  • What is a PIP?

    The smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100th of one percent, or one basis point.

  • What is "the dealer's spread"?

    The dealer's spread is the difference between a principal market maker's bid price and ask price stated in PIPs. The bid price is the price at which the client would sell and the ask price is the price at which the client would buy a given currency pair at a given point in time.

  • What is a "Nostra" Account"?

    Deposit Account denominated in a foreign currency that is held on the books of a non-US Bank.


IBS FOREX PRICING POLICY — IBS Forex acts as a Principal in all Foreign Exchange transactions with its customers and as such takes the other side of your trade(s) for its own account and risk. IBS Forex may Mark-Up or Down the price(s) of these transactions. The amount of any such Mark-Up/Down will vary depending on the transaction’s size, amount of time to maturity and prevailing market conditions. IBS Forex may have offset its risk involved in these transactions directly or may have assumed the market risk of these transactions without taking any steps to hedge or reduce its market exposure.

For more information on IBS Forex’s Pricing Policies please contact the IBS Forex Compliance Department at 1-877-868-6780 Toll-Free.

FOREX RISK DISCLOSURE — Past results are not necessarily indicative of future results. Forex trading, even when done by a professional trader, presents substantial risk of loss, and only funds that a customer can afford to lose should be used for Forex trading. The off-exchange nature of this type of foreign exchange trading can increase the risks associated with such trading. Funds deposited with a Foreign Exchange dealer are not required and will not be segregated for the benefit of Foreign Exchange customers and no preferential treatment will be provided these funds in the event of a dealer bankruptcy. Foreign exchange transactions conducted online carry additional risk of loss in the event of a hardware/software failure or communication disruption. You should carefully examine whether or not Forex trading is suitable for you in light of your financial condition.