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.

  • Why should I trade Forex?

    Forex is the largest and most liquid market in the world. The market is open 24 hours per day 6 days per week. You can go both long and short the market at anytime with no restrictions. See Risk Disclosures below

  • When is the market open for trading?

    The market opens at 4 p.m. CST Sunday and closes at 4 p.m. CST Friday.

  • 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).

  • How can I sign up for a demo?

    Click on the red "Register for a FREE DEMO" link in the right-hand navigation bar and follow the instructions.

  • How can I open an account?

    Call 1-800/691-2787.
  • What is your minimum account size?

    5,000.00 USD

  • 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.

  • What types of orders can I place?

    Many types of orders are accepted including Market, Limit, Stop, GTC (Good 'till Cancelled), and OCO (Order Cancels Order).

  • 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.

  • How do I calculate profit/loss?

    An example: The USD/JPY rate is quoted at 111.95 / 98. This quote represents the bid/offer spread for USD vs. Japanese Yen. You believe that the US Dollar will strengthen against the Japanese Yen and decide to buy or "go long" 500,000 USD/JPY at 111.98. The market does, in fact, rally and you take your profits at 112.65.

    The profit calculation is as follows:
      Size of Trade X (sell price - buy price) = profit or loss
      500,000 X (112.65 - 111.98) = 335,000 JPY

    To convert the JPY profit into USD at an exchange rate of 112.65:
      Number of JPY / USD/JPY Exchange Rate = USD
      335,000 / 112.65 = 2,973.81 USD
    This example represents a wholesale dealer transaction and does not include a dealer markup/markdown. The inclusion of a dealer markup/markdown for a retail Forex transaction could have a negative impact on the profitability presented. See "Retail Forex Pricing Disclosure" below.


RETAIL FOREX PRICING DISCLOSURE — Under US Regulations you may be considered a Retail Forex Customer. However, IBS Forex is operating pursuant to an exemption to the National Futures Association's definition of a Forex Dealer Member. Therefore, even though you may be considered to be a Retail Forex Customer, some or all of the protections available to you if you were conducting business with a Forex Dealer Member may not be available to you. For additional information, please contact IBS Forex Compliance at 312-582-6710.

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.

TRADING SYSTEM RISK DISCLOSURE — Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.