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MB Trading Futures - Introduction

  • #1,741
  • Mar 7, 2008 10:47am Mar 7, 2008 10:47am
Two things here:
First a margin call by definition is just that, a call to the client to put more money into their margin account. Both security firms and futures firms do this. And yes sometimes they make a 100 calls a day to different clients about their margin accounts. Generally and depending on the client the broker makes the call before the position has hit its maintance margin limit. A lot of futures, equity brokers depending on the client, the asset being traded and the company agreement will give the client a day sometime two to make a wire.
Second, the reason this is different in the FX Market is because the market is much more volatile and instead of clients having 50% margin in the equities world they have 1% margin with FX. Leverage and Volatility are the two biggest reasons FX firms dont do this, they do not have the time to give clients a day or two. However, depending on the clients relationship with their FX broker some brokers do make actual calls to the client. Those clients are generally ECP's or member firms.
  • #1,742
  • Mar 7, 2008 11:40am Mar 7, 2008 11:40am
Quoting Pip Hunter E
Don't be a smart ass Justin. All types of trading make margin calls on accounts, which I assume you know.

I've never heard of a securities broker calling customers about their positions. I'm not sure why you would either. If a trader is not managing their account that's their problem. Liquidate some or all of the position, as any other broker would. Why you'd take responsibility to call clients about their positions is beyond me. (Don't give me some line about customer service either.)

Just close the positions like in every other type of trading. You'll have to if you are ever the size of a Merril, Schwab, TD, E-Trade, etc. You can't call millions of clients because they are not smart enough to manage their accounts lol.
Sorry...wasn't trying to be a smart ass and certainly wasn't directing it at you. I was merely trying to convey the message that traders need to be held accountable just as much as the broker and that we will always do the best we can to protect the client.
  • #1,743
  • Mar 8, 2008 2:03am Mar 8, 2008 2:03am
Quoting jleblang
Sorry...wasn't trying to be a smart ass and certainly wasn't directing it at you. I was merely trying to convey the message that traders need to be held accountable just as much as the broker and that we will always do the best we can to protect the client.
I think the traders should be held 100% responsible IMO, but that it should be handled with technology. My view is that a margin call is made when either a trader has grossly mismanaged their account, or when something catastrophic and unexpected happens. For me, I'm always going to make sure I'm not expending every last drop of my usable margin. So the only way I'd ever experience a margin call is is something went very VERY unexpectedly wrong with the technology, on my end really.

In the event that my trading systems go haywire (which naturally would never be put into production without thorough QA to begin with), I'd be glad for the technology on your end saying "nope, sorry can't do that".

For someone who is going to over-leverage themselves, they'll bust soon enough anyway. MB needs to protect themselves also for sure, but I think it's honest joes like me which MB should be concerned with on the customer end of establishing margin policies. The only reason I'm ever going to be even remotely close the my margin reqs is if something goes EXTREMELY wrong on my end, technically speaking. I can't be awake 24 hours per day (yet ) to continually monitor my systems, so I've got to count on the technology I put in to production at some level. Technology, as we all know, sometimes fails.

That's my 2 pips on the matter.

In any case, best regards to the now larger MB Trading. You going to make a new thread or what?
  • #1,744
  • Mar 9, 2008 4:35pm Mar 9, 2008 4:35pm
Hmm, interbank is trading yet EFX is closed...? Did you guys forget about daylight savings time?
  • #1,745
  • Mar 9, 2008 5:07pm Mar 9, 2008 5:07pm
Things settling down now, 6:05pm NY time
  • #1,746
  • Mar 9, 2008 7:20pm Mar 9, 2008 7:20pm
Quoting Trader KGB
Hmm, interbank is trading yet EFX is closed...? Did you guys forget about daylight savings time?
KGB ~

We were not open at 5pm EST, because we were having an issue with some of the banks and wanted to establish a solid connection before allowing traders on the system. Obviously the issue is fixed now; I apologize for the delay.
  • #1,747
  • Mar 9, 2008 7:35pm Mar 9, 2008 7:35pm
Quoting jleblang
KGB ~

We were not open at 5pm EST, because we were having an issue with some of the banks and wanted to establish a solid connection before allowing traders on the system. Obviously the issue is fixed now; I apologize for the delay.
No need to apologize. Dukascopy was down until 6pm EST too.
  • #1,748
  • Mar 9, 2008 8:31pm Mar 9, 2008 8:31pm
does EFX or its parent: MBT have automated trading capability.... i know that mt4 can be programmed to do many things, but i would love to be able to write a script to help me manage my existing trades..... like reduce / add lots at certain price area, exit at stops, target... and some complicated form of money management that can't be done with just normal limit/stop orders.
{Link Removed}
  • #1,749
  • Mar 9, 2008 8:53pm Mar 9, 2008 8:53pm
Quoting chiefraven
does EFX or its parent: MBT have automated trading capability.... i know that mt4 can be programmed to do many things, but i would love to be able to write a script to help me manage my existing trades..... like reduce / add lots at certain price area, exit at stops, target... and some complicated form of money management that can't be done with just normal limit/stop orders.
yes they have an API
https://www.mbtrading.com/fx/developers.asp
  • #1,750
  • Mar 9, 2008 10:30pm Mar 9, 2008 10:30pm
Hi Justin,
I emailed you with some questions and requests regarding my account approval can you please reply to me asap. I PMed you about it too i hope you look into it thanks

Wasil Ahmed
  • #1,751
  • Mar 10, 2008 1:23am Mar 10, 2008 1:23am
Justin,

When will you allow deposit by credit card? I have EFX and FXCM but probably the only reason I'm using FXCM is the ease of deposit.

Thanks.
"People sometimes mistake luck with skill"
  • #1,752
  • Mar 10, 2008 10:16am Mar 10, 2008 10:16am
Justin or anyone else,

Where do you go on the MB platform to find the swap rates? From what I have heard the swaps on this platform are terrible but I wanted to see it for myself.

Thanks for the help
  • #1,753
  • Mar 10, 2008 10:22am Mar 10, 2008 10:22am
Hi,

what's up with the main window of EFX website having a link to EFX Remote Trader Demo and the when you click on on it it says Demo for Remote Trader is not available?.. How do you suppose people starting using it without having tried it?

thanks
  • #1,754
  • Mar 10, 2008 10:33am Mar 10, 2008 10:33am
Hey, jasius.

I'm just guessing here but it may have something to do with the fact EFX was purchased by MBT.
  • #1,755
  • Mar 10, 2008 10:41am Mar 10, 2008 10:41am
Quoting opie999
Hey, jasius.

I'm just guessing here but it may have something to do with the fact EFX was purchased by MBT.
Could be... Still doesn't make sense, why advertise if you can't provide?..
  • #1,756
  • Mar 10, 2008 11:01am Mar 10, 2008 11:01am
I have been demo trading with MB to see if they are worth while. Now having found the swaps, and after calculating the commissions they're one of the most expensive brokers in the market (including dealing desks.) If you trade anything where USD isnt the base currency their commissions are rediculous. Spread on GBP/USD is usually somewhere around 2 pips. Commission going in about 2 pips. Commission going out about 2 pips. If I do a trade of 1M in GBPUSD it will cost me 200 dollars in commission and that doesnt inlude the spread. That is not even competitive with most dealing desks. Plus if you are short any of their pairs you get killed on the swaps but dont get much in return if you are long. With that being said MB doesn't make sense with all the other brokers out there that offer a much better deal. I am sure you could work out some sort of deal with them if you were a high volume guy but I doubt it would be as good as an ADMD at 12$ per million. Instead of making their money on spreads like dealing desks, they make a killing on commissions and a killing on rolls.
  • #1,757
  • Mar 10, 2008 12:26pm Mar 10, 2008 12:26pm
Quoting 20pips
Justin,

When will you allow deposit by credit card? I have EFX and FXCM but probably the only reason I'm using FXCM is the ease of deposit.

Thanks.




http://www.forexfactory.com/showpost...&postcount=269
Hi richy ~

Though I don't disagree that funding with a Credit card would make things much easier for clients, we do not fully believe allowing people to place debt on themselves to trade is the most ethical way of doing business. I realize not everyone would be in this situation with their credit card, but we have to think about those who are.

Kind Regards,
  • #1,758
  • Mar 10, 2008 3:05pm Mar 10, 2008 3:05pm
Quoting chiefraven
does EFX or its parent: MBT have automated trading capability.... i know that mt4 can be programmed to do many things, but i would love to be able to write a script to help me manage my existing trades..... like reduce / add lots at certain price area, exit at stops, target... and some complicated form of money management that can't be done with just normal limit/stop orders.
chiefraven ~

Currently in house we do not offer such services, but we do connect with NinjaTrader, NeoTick (Tradebullet) and other similar services that offer automated trading.

We also have a developers kit for those who wish to connect their own programs.
  • #1,759
  • Edited 2:16am Mar 11, 2008 2:14am | Edited 2:16am
Quoting fxtrader42
I have been demo trading with MB to see if they are worth while. Now having found the swaps, and after calculating the commissions they're one of the most expensive brokers in the market (including dealing desks.) If you trade anything where USD isnt the base currency their commissions are rediculous. Spread on GBP/USD is usually somewhere around 2 pips. Commission going in about 2 pips. Commission going out about 2 pips. If I do a trade of 1M in GBPUSD it will cost me 200 dollars in commission and that doesnt inlude the spread. That is not even competitive with most dealing desks. Plus if you are short any of their pairs you get killed on the swaps but dont get much in return if you are long. With that being said MB doesn't make sense with all the other brokers out there that offer a much better deal. I am sure you could work out some sort of deal with them if you were a high volume guy but I doubt it would be as good as an ADMD at 12$ per million. Instead of making their money on spreads like dealing desks, they make a killing on commissions and a killing on rolls.
dude, U have to consider the whole thing together: include but not limited to leverage, execution speed,liquidity,enviroment stability, possible interest conflict,average spread, then caculate these factors, u'll have answer. And I doubt any other retail brokers can beat MBTF or have obvious edge. Besides, most of us still had the nightmare of the various maneuvers of those market-makers.

Anyway, If I had 500K bucks to manage, I will certainly move to other institutional platform.

regards
  • #1,760
  • Edited 3:08am Mar 11, 2008 2:33am | Edited 3:08am
Quoting fxtrader42
I have been demo trading with MB to see if they are worth while. Now having found the swaps, and after calculating the commissions they're one of the most expensive brokers in the market (including dealing desks.)
I think the commissions are so high because there are two middlemen in the equation: MBT/EFX and 3DFOREX (and the banks as a third). I imagine that MBT/EFX alone can't lower commissions without renegotiating with 3DFOREX and their partner banks. It's unfortunate, because MBT/EFX has some minor advantages the other retail ECNs don't have. But for those trading larger accounts, $50 per million simply doesn't compete with $18-$30 at the other ECNs.

edit - Come to think of it, if MBT wanted to lower commissions, they'd also have to renegotiate with EFX. Perhaps their decision to buy out EFX was related to this. Now it might be a bit easier for them to drop rates and compete with IB, Duka & HotSpot. Wishful thinking

Quote
I am sure you could work out some sort of deal with them if you were a high volume guy but I doubt it would be as good as an ADMD at 12$ per million.
You'd have to be trading north of a few yards (billions) per month for that type of commission. Trust me, I asked them directly about it. ADMD has different tiers on their currenex hub depending on volume, and if you're placed on a lower one, the spreads are padded and are awfully inferior.
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