Broker Complaints …Get over it!

Just something to add to the topic of MBT <-> 4xMadeEasy connection. I just did a bit of google-work about 4xME and what they are all about. Here is a link with various information about them:

http://www.puddletown.com/forex/4xme/

Especially interesting is the San Francisco Guarding article. Highlights inlcude one guy being sued by the U.S. government in 2001 for using deceptive sales techniques to defraud 60,000 customers of $15.2 million, just for example.

Or look at the other guys NFA record:

http://www.nfa.futures.org/basicnet/...6&contrib=CFTC

I just dont get why MBT has an affiliation with such obvious conartists and scumbags with such a history.

I'm sorry, but this is not a conversation that I should engage in as you clearly don't even understand the platform. There have been many times where the offer shows 1000 lots (yes, minis) and I have gone to buy 5000 and gotten filled. Seriously, I don't even know where to begin with this conversation as you just don't even know. If you assume that somehow ALL of the liquidity available on the EFX/MBTF system is what you see in the Level 2, you haven't even scratched the surface. Cantor Fitzgerald? Seriously? That isn't even a conversation. Currenex? Doesn't EVERYONE include Currenex anymore? And the reality is that the Forex Made Cheesy people aren't encouraged to use any size. I've seen someone trading on their software at 1000 minis per trade, which is great when they are selling and I am buying.

Actually, the reality is that the Level 2 doesn't even show all of the size available. The individual banks in the system that create the Level 2 are actually good for much more than they show typically. They just don't show their full size as you never know when news comes out in Forex.

Yup. Now, do me a favor. Google Citibank, JP Morgan, and Smith Barney and their management. Check the filings against them with the NASD and SEC (you don't have to read the hundreds of pages). Now here is my question. Ever bought a stock for trading or ownership purposes? Do you care if the guy selling it to you was an idiot or a genius? Was he being told to do so by a representative of one of the above firms, or someone else, or doing it on his own? It just doesn't matter.

Markets are about liquidity. Smart and dumb people are going to buy and sell all of the time. If no one got people interested in forex, the volume in the market would be lower, which means that the spreads would be wider. This isn't about firms and their decision to make spreads wider or narrower. You can add up all of the scam operations in the world and realize that none of them really teach people how to trade good, but at the same time, if they didn't exist, liquidity would be much lower. When you make a decision to buy or sell, you hope that there is a lot of liquidity on the other side of that trade. When you trade with a deal desk, the liquidity on the other side is simply THEM. They decide whether to fill you or not. End of story. When you trade with an ECN, the liquidity on the other side is the MARKET. That means customers buying and selling.

I have to laugh at the logic of these conversations. When people look back at the change in the stock market execution over the last ten years, they see companies like ISLD and ARCA that were bought for almost a billion dollars apiece. They accounted for 75% of the volume on the NASDAQ stock market. No one says "well, were there people in your system buying and selling on a faulty premise?" Of course there were. Heck, the markets aren't a 50/50 proposition. About 80% of people lose. No one creating an ECN is saying "Hey, we have traders that only know how to make money trading." That would create a lack of sellers when people need sellers and a lack of buyers when people need buyers. The goal of a true trading platform is to get a lot of people trading on their platform. You do that by finding the companies that bring traders to the market.

What is disappointing to me is to continue to hear people act like they have an understanding of these markets while suggesting that they don't want to work with a liquidity provider as deep in liqudity as MBTF because of the traders that MBTF brings to the equation. This is a company that has more banks than any other single platform (including Currenex) as well as more individual customer orders (due to deals such as Forex Made Cheesy). And just to be clear, I HATE Forex Made Cheesy. No pro trader would ever use it. But the people that use it add to my market. To somehow say "I only want to trade in a market where executions are dependent on people that make good decisions," well, that's a horribly wrong and horribly naive approach. There are winners and losers to every trade.

Let's compare the two. A deal desk shows a spread of 3 on the EURUSD. That means that each time that I buy and sell, 3 pips are wasted if I flip the trade immediately, and 6 pips are wasted if I trade in and out over time. Great. Now. Let's say that I trade on an ECN. When I buy, I get a true market price based on the best sellers in the market including banks and retail sellers. When I sell, the same is true in reverse. In other words, the best buyer in the world gives me the price that I have to take when I want to sell, and vice versa when I want to buy. That can't be true in any other scenario, and the more people that make up the buyers and sellers determines how good of a price that I will get.

It just doesn't seem confusing to me. MBTF is like ISLD and ARCA for the stock market in the late 90's, and they will ultimately be rewarded as such because they are bringing liquidity to the market. How smart the traders are that sign with them doesn't have an impact.

Well I hate to stir up more contention in this thread - as I did with the last post But this just ended up in my inbox:

http://www.youtube.com/watch?v=EQUlbxubHx4

I think he actually does a pretty good job at simplifying the difference between the two. But again, interesting how MBtrading comes out as the winner............

Its not like Island and Arca actively collaborate with such sleazebags, whose business model is to lure in naive investors and sell them their $3000 scam software. I mean whats next, will mb hire Tony Soprano and the arm-twisters to get fresh newbies to trade on their platform?

It is a special deal that I have set up with a friend of mine who runs a futures firm. Due to his connections we can get you set up for those small amounts. We also plan to integrate the MetaTrader software with the price feed and add a companion to the Metatrader to make it better, especially for news traders. Plus we have lower commissions than MB trading does since this is a real institutional platform. Private message me if you are interested.

[quote=fxchant;1572669 What is disappointing to me is to continue to hear people act like they have an understanding of these markets while suggesting that they don't want to work with a liquidity provider as deep in liqudity as MBTF because of the traders that MBTF brings to the equation. This is a company that has more banks than any other single platform [/quote]

As much time as this guy spends writing novels to defend MB and make fantastic claims like this makes me wonder if he is an IB for them as well. Just to make sure that the rest of you know the truth, every ECN has orders you won't see and market makers willing to take a large order if you put it up there. As far as MB having the most banks on their platform, he can't prove that statement and I know for a fact that it is not the case anyways. Just FYI everyone Cantor is the firm which provides the market with it's pricing data, they sell it to Reuters. It's called Cantor Data check it out sometime if you want.

Yes, I do believe that felix is an IB for MBtrading. And I think he offers rebates.

/agreed

Just because you started with one broker doesn't mean you have to stick with it. That is why most Forex tutorials suggest that Forex newbies try many broker's demo before settling on a broker for real trading.

Only problem with MBTrading is that the user interface sucks. Oanda is easy to use. I have heard of programmers customizing broker platforms however.