- Does FIFO apply to all of my trades?
- First in / First out applies ONLY to trades of the same size.
So according to IBFX if you set trades of 0.11 lot and 0.10 lot then the FIFO rule does not apply. But if you scale into a trade using same lot sizing each entry then your stuffed.
So with IBFX my statements made in the first post would only apply if your EA makes multiple trades of the same size (which a large proportion of EAs do):
2) EA aided traders may be hindered; As an EAs often trades the same forex pair as the manual trader, if an EA trades opposite to the manual trader, than the trades will be made null, and one trade may be rendered useless. Post 6 page 1.
3) EA aided traders may be hindered; EAs can often trade more than one trade at a time, that is can trade in both directions. If this happens the one currency pair in MT5 the position will be nulled into one. Possibly at a loss.
4) Multiple EA traders are stuffed: if traded on the same forex pair. Post 16 Post 19, page 2.
- Will my Expert Advisor still work?
- All of your Expert Advisors will continue to work with all of your pre-programmed stops, limits and trailing stops... ( and the answer should then include unless your EA has more than one active trades of the same size (which a large proportion of EAs do) or you happen to manually trade the same size lot as the EA.
The exception to this must be unless the EA launches trades of the same size. Otherwise their statement above would be lie, how unlike a marketing department.
- Will I still be able to use Stops and Limits, Trailing Stops and Take Profits?
- Absolutely – With the IBFX solution, you won’t have to make any changes from the way that you are trading currently. No need to make any adjustments to Stops and Limits, Trailing Stops or Take Profits.
This was always a MT4 issue. However, if changing the ordering system behind the scenes on the broker execution side it seems IBFX have a work around for the NFA ruling. This seems to me that IBFX would not be able to call themselves an STP broker.
- Will I still be able to close any of my orders of the same currency pair in any order?
- Yes, with the IBFX solution, your trading will still be fully functional without any changes to your current trading strategies.
Strategy does not change... hmmmm... But below they mention their FIFO offsetting features and creative accounting procedures do change and above they mention you can not use same lot sizing on the one currency pair without FIFO affecting.
IBFX have claimed no changes to functionality at the following link http://www.fxstreet.com/brokers/news...6-2384e23c9804 . IBFX traders should try the following to determine whether it is truth:
- Try to use Forex Funnel, I bet you can't.
- Try to use FAP or FAPTurbo with multiple trades being allowed and MM turned off, I bet you need to change you strategy. There are probably other examples.
- Try to use FAP and FAPTurbo at the same time on the EURUSD with same lot sizing.
- Allow an EA to trade and then try to trade the same size manually.
- Try to use any combination of EAs with same lot sizing.
However, this is a very minor issue if the broker offers micro lots, like IBFX does. (0.01lots) This will determine whether IBFX are telling the whole truth and nothing but the whole truth.
- How will this affect my daily statements?
- Interbank FX Official Statements will come directly from Interbank FX’s proprietary back office system using our FIFO offsetting and accounting procedures. These statements will be accessible through a client’s Web Site Login. You will still be able to pull an Unofficial Trade Journal using the Trade Journal feature within the IBFX website. You will also be able to produce Unofficial Trade Journals using MetaTrader 4 as your Trade Manager.
Does this combined with the question above mean that you will not actually know your account balance exactly because of the accounting procedures mentioned above and that your trade journal will be edited. Because last time I looked MT4 kept a fairly accurate trade journal. However, this again is a relatively minor issue as it causes IBFX to be more accountable for their accounting and trading practices.
- Does this NFA rule apply to all U.S. based brokers?
- Yes, this rule affects any broker in the U.S. that is a member of the NFA. Other brokers have attempted different approaches to this new ruling. We at Interbank FX strive to make trading in the forex market as simple as possible for our clients, all the while in full compliance with the NFA.
So it seems that with creative accounting procedures and re-alignment of trade execution behind the scenes MT4 brokers will NOT have to downgrade to being MT5 brokers.
Maybe IBFX have a solution to the MT5 one position execution system, although at the expense of keeping an accurate trade journal...
That is definitely a step in the right direction for MT4 traders, and also shows that MT5 developers should be able to do work arounds to their one position currency trading if they choose.
Any MT4 IBFX traders are encouraged to tell us all of their results...
Now this appears to be a positive.
The first post in the link below will give you a list of MT4 brokers not struggling to agree to NFA rulings.
http://www.forexfactory.com/showthread.php?t=174626