Review of the FX Junction & IBFX Connect Social Forex Trading Platforms

ForexNewsNow –  FX Junction is one of the leading social forex trading platforms which socializes forex trading and allows expert traders to share their expertise with fellow traders. With the sharp increase in the popularity of social trading networks, FX Junction is well poised to serve the needs of the traders all over the world.

IBFX Connect is the social trading platform launched by Interbank FX, one of the world’s leading forex brokers. IBFX Connect is quite identical to FX Junction in its look and feel and offers similar functionality. In fact, IBFX has reused the same platform as FX Junction by licensing it from FX Junction. This allows Interbank FX to provided value added services to all the traders that use its platform for forex trading.

How The FX Junction and IBFX Social Trading Platforms Work

Regardless of which platform you choose, FX Junction and IBFX Connect work in a similar manner. The platform lets you browse through the list of expert traders and identify the best performing traders. You can use a variety of filters like the minimum trading duration, country of the trader, account type and account age to filter through the list of traders.

Once you identify the expert trader that you would like to follow, you make your selection. After selecting the preferred trader, all the trades executed by that trader will be duplicated in your account instantly. As Interbank FX is also a forex broker, you can be assured of instant executions at accurate rates. You have the flexibility to stop following any particular expert trader and start following someone else if you feel the need to do so.

Regulations

If you choose Interbank FX as your forex broker, it is regulated by the NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission) in the United States and by the ASIC (Australian Securities and Investments Commission) in Australia. Being regulated by these agencies, Interbank FX and IBFX Connect have to take proper measures to protect your funds from any scams or irregularities.

Trading Platform for FX Junction and IBFX Connect

The social trading platform used by FX Junction or IBFX Connect can work with any broker with the only restriction being that the trading platform in use be MetaTrader 4. These platforms can be used with any broker that offers MetaTrader to their customers for forex trading.

To use the FX Junction platform, you have to download and use the FX Junction Bridge as an Expert Advisor (EA) with your MetaTrader platform. Similarly, the IBFX Connect platform requires you to simply download and install the IBFX Connect Bridge on your MetaTrader platform.

Comparison With Currensee and eToro’s OpenBook

The social forex trading platforms offered by FX Junction and IBFX Connect are quite similar to other competing platforms like eToro’s OpenBook and Currensee in terms of functionality and offerings. However, there are a few differences in the cost of using each of these platforms to follow an expert trader.

FX Junction charges a 1 pip commission on a standard lot for copied trades which covers its own cost and the share of the trader whose account you are following. Currensee charges a flat annualized 2% service fee (calculated on the account balance) and a 20% commission from all successful trades. On the other hand, eToro’s OpenBook platform doesn’t charge a separate commission as the commission is already built into the spreads that it offers to the traders.

FX Junction offers a VPS for its customers at a cost of $35 per month. By using a VPS for your trading terminal, you ensure that it is connected on a high speed network with the broker’s network at all times. This lets you duplicate trades at the best possible prices. The other platforms don’t yet offer a similar service but can be expected to follow suit very soon.

Pros of FX Junction and IBFX Connect

1. It allows traders to follow and copy the trades of expert traders
2. Both these platforms provide detailed information on traders and their trading history to help you make an informed decision on which trader to follow.
3. Expert traders can receive compensation in the form of a share of the commissions for sharing their trades with the rest of the trading community.

Cons of FX Junction and IBFX Connect

1. These platforms are only useful for traders who use MetaTrader for forex trading.
2. Traders have to pay a commission for using the trade copying facility regardless of whether the trade is profitable or not.