Forex Magnates reached out to Steve Sanders, EVP Marketing and Product Development at Interactive Brokers for his stance on the firm’s FX operations and regulatory operating headwinds. His full length interview can be read below.
1. As opposed to private firms, do you feel publically traded brokers dealing in FX have been under more pressure this year to meet earnings and revenues?
It depends on how the volatility story ends for the year. When volatility is low, trading drops off in any market, and there is pressure for public companies to meet their earnings and revenues.
2. Interactive Brokers has been one of the more established names in FX, how has the industry evolved over the years and does it stand at a key regulatory precipice?
Interactive Brokers always offered the tightest forex spreads and an explicit low commission. For many years this was a hard sell against those offering free commissions. I believe that more forex market participants now understand that free commissions don’t translate to best deal. There is talk that the SEC might release new rules for forex. We would then have to understand the new rules and decide if we wanted to move our forex business to IBUK.
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3. What do you feel are the advantages and disadvantages of being a US broker?
Advantage: safety of customer assets. Disadvantage: possible additional regulatory burden.
We continue to see robust growth as new customers located in more than 150 countries around the world see the advantages of opening an account at Interactive Brokers.
Consistent with our approach over the years, we will continue to add new local trading markets and expand our offering as the opportunity arises.
5. What makes Interactive Brokers unique, relative to other offerings?
- Our universal account that allows customers to trade stocks, options, futures, forex, bonds and funds from a single account on over 100 markets around the world
- Our transparent and low cost, commissions, financing rates and best execution
- Advanced technology