Converting Currency Balances
Account holders may find themselves holding balances in currencies other than their designated Base Currency as a result of trades in products denominated in a different currency or from profits/losses directly associated with Forex trading. In these cases, IB does not act to automatically convert balances back to the Base Currency as this action would require assumptions as to the account holder's desired currency exposure as well as the trade price at which they would be willing to close the position.1 IB does, however, provide those account holders who are not active Forex traders an expedited 3 step process for converting such positions at an individual or aggregate currency level. These steps are outlined below.
Please note the feature below is specific to Trader Workstation. If you are using WebTrader, you must place an order to convert currency. Please see the following link for more information on WebTrader Order Entry: WebTrader Order Entry
Step 1 – View Currency Balances
Select the Account icon from the TWS header.
Step 2 - Select the Position(s) to Close
From the Account window, scroll down to the section titled "Market Value - Real FX Balance", place your cursor on a currency you wish to convert and right-click on the mouse to display the Close Currency menu option. You will be provided with two options, Close Currency Balance which will close the single currency you've selected and Close All Non-base Currency Balances which will close all.
Depending upon the currency quantity you are converting and the market rate, a residual balance may remain as conversions can only be performed in whole currency amounts (e.g. no cents). The following message will appear advising of this situation and the automated conversion which will take place thereafter.
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Step 3 - Review & Transmit Order
Next, an order line for the conversion trade will be populated on the TWS. The order will be set up with default conditions of a market order (“MKT”), good for that day and for the current position quantity2. Select "T" to generate the Order Confirmation window using the default conditions or set the price and time conditions as desired.
Note: At times the use of a market order when performing a currency conversion may result in an order rejection due to margin requirements. In order to avoid this, traders may wish to update the order type to a limit order (“LMT”) and set up a limit price. The limit price is the worst price you are willing to trade at; if a better price is available your order will be executed at a better price.
Preview the order from the Order Confirmation window. Note that if your order size is below the IdealPro USD 25,000 equivalent minimum, it will be routed to the odd lot order book. Select the Transmit button when your desired order has been set up.
Once your order has been executed, it may be reviewed through the Trade Log icon from the TWS header.
In the event a residual balance remains, it will be displayed within the Account window (e.g. MXN 7 equals approximately USD 0.56) until the following business day at which point it will be automatically converted to the Base Currency.
For additional information on IB Forex, please see: An Introduction to Forex (FX)
1 IB will act to automatically convert non-Base Currency balances only where the balance is nominal (i.e., below USD 5 equivalent and assuming no subsequent trade activity through settlement) and when the customer requests to close the account (where the balances are below USD 1,000 equivalent)
2 Note that the position quantity created by this default will not include balances which are in an accrual state (e.g. interest, dividends).
Compatibility between MetaTrader and Interactive Brokers
Übersicht:
Interactive Brokers (IBKR) provides to its account holders a variety of proprietary trading platforms at no cost and therefore does not actively promote or offer the platforms or add-on software of other vendors. Nonetheless, as IBKR's principal trading platform, the TraderWorkstation (TWS), operates with an open API, there are numerous third-party vendors who create order entry, charting and various other analytical programs which operate in conjunction with the TWS for purposes of executing orders through IBKR. As these API specifications are made public, we are not necessarily aware of all vendors who create applications to integrate with the TWS but do offer a program referred to as the Investors Marketplace which operates as a self-service community bringing together third party vendors who have products and services to offer with IBKR customers seeking to fill a specific need.
While MetaQuotes Software is not a participant of IBKR's Investors Marketplace, they offer to Introducing Brokers the oneZero Hub Gateway so that MetaTrader 5 can be used to trade IBKR Accounts[1]. Clients interested would need to contact oneZero directly for additional assistance. Please refer to the Contact section from the following URL.
Note: Besides oneZero Hub Gateway, different vendors such as Trade-Commander, jTWSdata and PrimeXM also offer a software which they represent, acts as a bridge between MetaTrader 4/5 and the TWS. As is the case with other third-party software applications, IBKR is not in a position to provide information or recommendations as to the compatibility or operation of such software.
1: oneZero is not available for Individual Accounts, please click here for more information on Introducing Brokers.
Ninja Trader Integration with TWS - FAQs
Q: Is Ninja Trader Compatible with the Trader Workstation (TWS) / IB Gateway*?
A: TWS / IB Gateway Application Program Interface (API) accommodates connection to a variety of third-party vendors, including Ninja Trader, who offer complementary order entry, charting, back-testing and analytics software programs designed to expand the functionality of TWS. Please refer to the following Ninja Trader website link for details: http://www.ninjatrader.com/ConnectionGuides/Interactive-Brokers-Connection-Guide
* IB Gateway support is available with Ninja Trader 8+
Q: Can Ninja Trader be tested with the TWS platform demo* which IBKR makes available to prospective clients?
A: Yes, but only on a limited basis as the platform demo is solely intended to demonstrate the functionality of the TWS and its API. As background, the TWS demo provides only delayed market data and does not offer the historical data necessary to populate Ninja Trader charts requiring a combination of streaming and historical data. Once your live IBKR account is approved and funded a paper trading account may be requested, the market data subscriptions to which will accommodate full testing of the Ninja Trader application.
*Demo can be accessed from the login screen of TWS (No Username? Try the Demo or during the opening process of an Account.
Q: Is Ninja Trader compatible with all versions of TWS?
A: No. There is an inherent lag between the time IBKR releases a TWS update and that at which any third-party vendor can reasonably respond with a corresponding software upgrade. In the case of Ninja Trader, its application is compatible solely with the Offline TWS platform (not the automatic update) and to determine the particular version currently supported, please refer to the following Ninja Trader website link: http://www.ninjatrader.com/ConnectionGuides/Interactive-Brokers-Connection-Guide
Q: Can the free delayed market data feed from IBKR be used with Ninja Trader?
A: No. Though delayed market data is generally available through the API, some third-party vendors does not utilize these functions. Account holders seeking to use IBKR as a data source must subscribe to a real-time data feed through the Client Portal.
Q: Is there any distinction between the rate at which Ninja Trader seeks to load chart data and that which the IBKR market data feed supports?
A: As queries which request the same historical data within a short period of time may result in excessive back end server load, IBKR imposes pacing restrictions which, if violated, will generate error codes. In certain circumstances, the pacing of data requests through IBKR may delay the loading of the data through Ninja Trader, particularly when multiple charts and or symbols are loaded simultaneously. For details regarding the limitations IBKR imposes with respect to historical data queries, please refer to the following IB API guide link: https://interactivebrokers.github.io/tws-api/historical_limitations.html
Q: Does IBKR support the market data required to populate Ninja Trader Range Bar charts?
A: Range Bar charts generally depict the movement of price for a particular instrument over a defined time period (e.g. month, day, 5-minute, 3-minute, etc.) or tick increment. At this time many software vendors has not made the necessary updates to offer the tick-data provided by Interactive Brokers. Ninja Trader Bar charts require an alternate data source to eliminate data gaps.
Please refer to the following Ninja Trader website link for a list of supported connectivity providers as well as the historical and real-time data provided by each: http://www.ninjatrader.com/support/helpGuides/nt7/index.html?historical_data.htm
Q: It is possible to use different data source vendor between TWS and Ninja Trader interface?
A: Yes. It should be noted that Ninja Trader does not operate as a vendor of market data and use of this application requires provision of data by a third-party connectivity provider. While IBKR can serve as this provider for real time prices, these prices are not provided on an unfiltered tick-by-tick basis, a prerequisite for fully populating Ninja Trader charts. A common setup therefore, is to use Ninja Trader as a front-end order entry platform, routing orders to the TWS for execution and clearing by IBKR and bridge to a third-party vendor for market data.
Q: Is Ninja Trader compatible with IBKR’s paper trading (simulation) account?
A: Yes Ninja Trader connects to the paper trading account in the same manner as to the live account. To familiarize oneself with the configuration and operation of these applications, IBKR strongly recommends conducting test trades through the paper trading account prior to submitting orders through the live account.
Q: How can orders submitted through Ninja Trader for execution through TWS monitored with TWS?
A: Classic TWS contains a quote monitor page denoted by a tab marked “API” within the main window through which open orders submitted via Ninja Trader or any third party software application may be monitored.
Q: Is Ninja Trader compatible with IBKR’s Financial Advisor and Friends & Family account type?
A: Yes, although not with the full order allocation functionality provided directly through the TWS. While Ninja Trader can be used to submit orders for a client sub-account through the Advisor master account, it does not allow for a single order to be allocated to more than one sub-account: http://www.ninjatrader.com/support/helpGuides/nt7/account_groups.htm. This is in contrast to the TWS user interface which provides for multi-client trade allocations from a single order (through the Account Group or Allocation Profile options).
Q: How does one determine the cause of orders which have been submitted via Ninja Trader and subsequently canceled or rejected?
A: An order which has been canceled or rejected will be accompanied by an error message generated by Ninja Trader and/or TWS depending upon the source of the action. Order cancellations/rejections may be attributable to a variety of factors including IBKR credit policies, exchange restrictions or an invalid user request. In situations where the error message is not self explanatory, the user will need to contact the technical support teams of IBKR and Ninja Trader to diagnose and troubleshoot the problem.
How to Place a CFD Trade on the Trader Workstation
How to place trades in U.K. CFDs on the Trader Workstation
Accessing the WebTrader Language Selection Menu
Übersicht:
IB's Webtrader allows the user set the system display in a variety of languages including English, German, French, Italian, Spanish, Japanese and Chinese.
Background:
Account holders who need to reset the global language setting in the WebTrader may no longer be presented with the selection menu at the point of login as the setting has been saved by their browser. Outlined below are the steps which are required to be taken in order to again display this selection menu using Internet Explorer as the sample browser.
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IMPORTANT NOTE: Please note that these steps require that you delete temporary internet files and cookies in order to reset your WebTrader layout to the default settings. By taking this step you will also remove any customized settings or layout establsihed in prior WebTrader sessions and will also clear all private data stored in your browser.
Step 1
From the browser main menu, select Tools and then Internet Options
Step 2
Select the tab titled General and click on the Delete button
Step 3
Check the boxes marked Temporary Internet files and Cookies and click on the Delete button
Step 4
Close and then reopen your Internet Explorer browser and login to the WebTrader. The login screen should now display the language preferences.
Step 5
If the language preferences are not displayed, you will then need to manually delete your cookies. To do so, return to the Tools and then Internet Options menu options and select the Settings button.
Step 6
From the Temporary Internet Files section, click on the View Files button. Then highlight ALL files and delete. Close and then reopen your Internet Explorer browser and login to the WebTrader. The login screen should now display the language preferences.
IdealPro - Large-Size Order Facility
Übersicht:
The IdealPro Forex market center provides a Large-Size Order facility specifically intended for accounts which regularly submit orders in quantities greater than standard order maximums and are willing to trade outside the NBBO associated with the standard order minimum/maximum bands in an attempt to obtain faster fills.
Background:
Standard orders submitted through IdealPro are subject to minimum and maximum size restrictions which, when expressed in USD equivalents, generally range from $25,000 to $7,000,000 but vary by currency (see Forex Min/Max Order Sizes Chart). These size restrictions serve to provide for the most optimal combination of liquidity and spreads, minimize the impact of erroneous or “fat finger” entries, and are intended to minimize any distortion which the submission of a large-size order may have upon supply or demand.
Orders submitted at a quantity below the standard order minimums are considered odd lot orders and are subject to special handling and price quoting considerations (see Odd Lot FX Transactions). Account holders who wish to submit orders at quantities above the standard order maximum must first request to be qualified for the Large-Size Order facility. Unlike standard orders for which the quote covers any quantity within the stated minimum and maximum size restrictions, the quote associated with a Large-Sized Order is specific to the order quantity entered. In an effort to obtain the best execution possible and also to limit any market impact, Large-Sized Order quotes are
generated based upon an aggregation of quotes provided by interbank dealers along with
and internalized orders of other IB clients.
Outlined below are a series of FAQs addressing the features and considerations of the Large-Size Order
facility.
How do I become eligible to submit Large-Size Orders?
In order to become eligible to submit large-size orders through the Large-Size Order facility, you would need to first submit a request to Customer Service. Requests will be reviewed and considered based upon a number of factors including the applicant's prior trade history and account equity. Please allow up to 7 business days for completion of this review to take place.
What spreads are expected for Large-Size Orders?
In general, spreads for Large-Size Orders on IdealPro are expected to be greater than those for standard orders, however, other factors such as liquidity of the currency pair, time of the day and release of economic numbers or other data can also influence bid ask spreads and should also be taken into consideration.
What is the maximum available order size?
In general sizes up to 50 million of the base currency are available. As with bid-ask spreads, this may vary depending on a number of factors. The Large-Size Order facility will return the lower of the size requested and size available at the time of the request.
What order types are supported?
Account holders are strongly encouraged to use limit order types with the Large Size Order facility as market orders are susceptible to being filled at prices far lower/higher than the current displayed bid/ask particularly under volatile market conditions or where the order involves illiquid products. In addition, to protect from losses associated with significant and rapidly changing prices, IB will simulate client market orders as market with protection orders, establishing an execution cap seven basis points (0.07%) beyond the quoted bid/ask. While this cap is set at a level that is intended to balance the objectives of execution certainty and minimizing price risk, there exists a remote possibility that the execution of a market order will be delayed or may not take place.
How will prices be displayed?
The TWS quote line will display dealable prices for a predefined amount once access to the Large-Size Order facility has been provided. To display prices, right-click on a given currency pair and then select the Choose RFQ and Submit RFQ menu options (Exhibit 1). You will then be prompted to provide the currency amount and then hit enter (Exhibit 2). The prices displayed (Exhibit 3) will time out after a certain time and you would have to repeat the request process to get another price again. We do not publish prices through other channels at the moment. The handling of the orders remains the same, regardless whether sent using the Large-Size Order facility, the quote screen, FX Trader or sent using an API.
Exhibit 1
Exhibit 2
Exhibit 3
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Order Management Overview
BACKGROUND
IBKR’s order management and routing systems are negatively impacted when the volume of orders submitted by clients is significant relative to those which are actually executed. Left unchecked, unproductive orders have the potential to slow system performance, adversely impact other clients and increase capacity requirements and costs. To minimize the load of such orders on internal systems and to comply with exchange policies, certain of which impose a surcharge for excessive messages, IBKR monitors order activity and may place restrictions upon clients who routinely submit a disproportionate number of unproductive orders.
MEASUREMENT & REPORTING
The Order Efficiency Ratio (OER) allows IBKR to evaluate order productivity by comparing aggregate daily order activity relative to that portion of activity which results in an execution. This ratio is as follows:
OER = (Order Submissions + Order Revisions + Order Cancellations) / (Executed Orders + 1)
An OER above 20 is generally considered excessive and indicative of inefficient order management logic. Clients who routinely report an OER above 20 will receive notification of their ratio and are advised to review and optimize their logic and those who fail to take action or who report a particularly egregious ratio may be subject to trade restrictions.1
TAKING CORRECTIVE ACTION
Clients submitting orders through an API can often realize significant declines in their OER through slight modifications to their order logic. Please review KB1765 for a list of the most common techniques for optimizing this ratio.
1 It should be noted that these actions are not aimed at the client who submits 200 orders and receives 10 executions but rather those using automated systems to submit thousands of orders with negligible interaction with the NBBO.
TWS Messages - Your account is restricted from placing orders at this time
Account holders receiving the following message 'Your account is restricted from placing orders at this time' are not allowed to place any opening or closing orders without prior assistance from the IB Trade Desk. Questions regarding this restriction should be addressed to the Trade Desk via Customer Service (see contact information link below).
Links:
