IFX Markets Review

IFX Markets offers 24-hr Foreign Exchange trading to hedge funds, money managers and self-traders. The company is headquartered in Boston, Mass., with other locations in China and London.

IFX Markets offers a wide-ranging trading experience. Traders can trade among 27 currency pairs, with 2 point spreads on both EUR/USD and USD/JPY, and 3 point spreads in other major currencies (GBP/USD, USD/CHF).

Sign-up is easy and efficient, with quick (within a minute) email confirmation. You can use one of 10 currencies to fund your account, but must start with at least $500, which is much less than some other popular Forex sites. You may use a bank check, but it may take up to five business days for some checks to clear.  For deposits above $15,000, you must use a wire transaction. Unlike other sites, there was no clear information on using credit cards to complete transactions.

A minimum transaction size is 1 lot, or 10,000 of the base currency. An account with a margin deposit of 1 percent would open a US$10,000 position and would require an initial margin deposit of US$100.

With IFX Markets, you have the latest trading information at your fingertips. Through the online platform, you can execute trades directly from real-time streaming bid/ask quotes. Live prices are continuously updated via a trading software and you can at any time click on the current bid or offer and instantaneously execute a trade.

IFX Markets does a good job making its information accessible to everyone:  The platform is available in 14 languages, and the website itself in eight.

You can practice trading with a free demo account which is available in windows or java.  If you have additional questions or concerns, you can access the site’s user manual that walks you, step by step, through making transactions and reading the site. The manual uses both narrative and illustrations to clearly demonstrate how the site works.

The site also includes a comprehensive economic calendar to help you make your trading decisions. It lists events such as reports on U.S. existing home sales, retail sales, etc.

Executing a deal via the Internet is a simple, two-step process. Simply enter the number of lots and then click on the bid (buy) or offer (sell) for the currency pair you wish to trade - your deal is automatically executed. The dealing software automatically calculates the initial margin requirement based upon the notional amount of the deal, and if sufficient funds are available in your account, will accept the transaction. Deals are confirmed online, normally within one second, and the system instantaneously updates both your open position and calculates your current floating profit and loss.

The dealing platform provides sophisticated order entry and tracking. Orders may be entered at any rate - inside or outside the existing spread - using the following orders types:

• Market Order

An order based on a current market price.

• Limit orders

An order with restrictions on the maximum price to be paid or the minimum price to be received.

• Stop Loss orders

Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.

You can also place orders via telephone:

To get an idea of where your account stands, you can access your account statements at any time.

To withdraw funds or close an account at any time, fill out and sign the Withdrawal Form. Requests to withdraw funds will be processed in two business days.  For withdrawals of more than $25,000, IFX Markets deals with wire transfers only.