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MB Trading Futures - Introduction

  • #321
  • Jan 15, 2007 12:00pm Jan 15, 2007 12:00pm
There is a discussion going on about EFX at another very large forum. In it, they discuss the swap rates. Here is an excerpt. It's all part of doing due diligence. To be fair to EFX, you should go read their response.

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I agree! The Swap they pay vs. the Swap they charge is waaay out of line. Even the really sucky brokers are not this greedy. Take a look at what they pay (1standard lot) on GBP/JPY... It's $5.97 and there are many brokers (even bad ones) paying 22-24 per standard lot. Of course if you go short they wack you with -$15.84.

Just so you know with a carry trade of only 1m that's around $4,809 they are taking out of your pocket every single month... Or around $57,708 per year.

On the USD/JPY the long would pay $7.48 (1 standard lot) and charge you -$23.73 (1 standard lot). Most brokers pay around $12-14 and charge around $14-15. So the difference on only 1m long per month would be $1376, but if you go short you pay an extra $2,919 per month (1m short carry trade for 1month) over what most brokers are at.

If you mainly daytrade and flat before 5pm ET this is a non-issue though. Other than that they look ok to me but I've not used them for the same reason as MountainTrader.

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  • #322
  • Edited 2:41pm Jan 15, 2007 1:59pm | Edited 2:41pm
I opened a LIVE account with EFX after much discussion and thought. But Iam very disappointed by the spareads. Its Monday 15-Jan-2007 1:50 PST and below are the spreads for the pairs i was intered in.

EFX OANDA
--------------------------------------------------
EUR/AUD=15 pips 9pips
AUD/NZD=13 Pips 9pips
EUR/CAD=8 pips 6pips
GBP/CHF=11 Pips 8pips
GBP/JPY=7 Pips 8pips

I never heard of 15 pips on a regular day for any pair with any other broker atleast not with OANDA.(I dont trade news). On top of it I have to pay Commission of $20+!!!.

This is very disappointing.I called the support and they said that the banks decide on the spreads and they dont get involved. And they have this regular answer of that they dont have a dealing desk. What is the use of having no dealing dealing desk if iam paying 15 pip spread!!. Now I have to look for a broker who can offer me fixed spreads for the above pairs.

EFX is good only if you are using major pairs I think!. I should have done more research before I moved to EFX. Now Iam planning to move to OANDA as they have less apreads for the Pairs Iam interested in.
  • #323
  • Jan 15, 2007 2:57pm Jan 15, 2007 2:57pm
Quoting rishi

EFX is good only if you are using major pairs I think!. I should have done more research before I moved to EFX. Now Iam planning to move to OANDA as they have less apreads for the Pairs Iam interested in.
Rishi

I don't think it's a reach to assume that more people trade the majors over the less major. That's sort of built-into the definition. Having said that, with EFX, you can still eliminate those spreads completely with limit orders. With Oanda, you can't. If you are buying and selling at the market each time, Oanda is the better answer for those less common pairs. If you are trying to get better pricing, EFX is the better answer. But yes, certainly most people trade on EFX for the huge liquidity on the majors.

FXChant
Singing the World of Forex
FXChant Singing the World of Forex
  • #324
  • Edited 10:07pm Jan 15, 2007 9:07pm | Edited 10:07pm
"Having said that, with EFX, you can still eliminate those spreads completely with limit orders."

FX Chant

Thanks for your reply. 90% of the time I use pending orders and I dont see/know how to eliminate these HUGE spreads. Would really appreciate if you can elaborate on the same. Iam new to this platform and Iam trying to figure it out.

I would rather stay with EFX if there is a way to avoid these spreads.

Thanks for your time.

Justin-Can you pls shed some light on this?
  • #325
  • Jan 16, 2007 6:03am Jan 16, 2007 6:03am
When I close a position in my demo account using a TTO order, why does the system close it and then enter the trade again? This has happened a couple of times. Hopefully it is just a demo issue. Please advise.
  • #326
  • Jan 16, 2007 7:28am Jan 16, 2007 7:28am
Quoting rishi

EUR/AUD=15 pips 9pips
AUD/NZD=13 Pips 9pips
EUR/CAD=8 pips 6pips
GBP/CHF=11 Pips 8pips
GBP/JPY=7 Pips 8pips

I never heard of 15 pips on a regular day for any pair with any other broker atleast not with OANDA.(I dont trade news). On top of it I have to pay Commission of $20+!!!.

.
Rishi,

Thank you for your post, but I wouldn't really call Monday January 15th a regular trading day considering it was MLK Day and the US banks were closed.

Here are the same pairs and the spreads today on a regular trading day. Some will remain the same as the do not have much liquidity, but others are much tighter.

EUR/AUD 9
AUS/NZD 8
EUR/CAD 3
GBP/CHF 5
GBP/JPY 4
Attached Image
  • #327
  • Jan 16, 2007 7:31am Jan 16, 2007 7:31am
Quoting Marley89
When I close a position in my demo account using a TTO order, why does the system close it and then enter the trade again? This has happened a couple of times. Hopefully it is just a demo issue. Please advise.
Hi Marley ~

It sounds like you might be leaving multiple positions in place that our triggering the 2nd trade. Could you please contact me directly at 877-212-1112 or [email protected] so I can work through your order entry process in detail?

I look forward to hearing from you soon.
  • #328
  • Jan 16, 2007 7:44am Jan 16, 2007 7:44am
Quoting rishi
"Having said that, with EFX, you can still eliminate those spreads completely with limit orders."

FX Chant

Thanks for your reply. 90% of the time I use pending orders and I dont see/know how to eliminate these HUGE spreads. Would really appreciate if you can elaborate on the same. Iam new to this platform and Iam trying to figure it out.
With EFX Group there is no minimum pip requirements for stop or limit orders, so traders are able to place a limit order right between the spread.

Example: Trader wants to go long GBP/JPY [BID 235.60 / ASK 236.65]

Could go long at the ASK 236.65, but the trader would have a five PIP spread.

So trader places a limit order to go long at 235.63 for 10 lots.

The traders limit order becomes the best BID price and he/she has a pending order now to go long at 235.63. While the new spread is 235.63 / 235.65.

See Screen Shot:
Attached Image
  • #329
  • Jan 16, 2007 9:00am Jan 16, 2007 9:00am
EFX Group: Advanced Navigator Training

Wednesday, January 17, 2006

Start Time: 8pm EST

Finish Time: 9pm EST

This webinar will be cover;

1. The use of different order types.

2. Trading with Level ll (In between the spread)

3. Time for Q&A

I hope to see many of you there.

https://www.gotomeeting.com/register/427450284
  • #330
  • Edited 10:21am Jan 16, 2007 9:59am | Edited 10:21am
Quoting traderandreas
Hi Justin,

The efx trading platform is the worst in the industry, very difficult to use, to place a stop and limit, and even to close the trades is very poor. Can the platform be modified so it works similar to MT4.
thanks,
Trader
i think the platform is OK,i'm using both the navigator and the pro...

the only thing efx lack is 'free' charting...

1 pip makes a different...
  • #331
  • Jan 16, 2007 11:35am Jan 16, 2007 11:35am
Justin;
1. I signed up for a DEMO account, but whenever I tried logging in I received a error message stating "login rejected for reason: Invalid username" I have send you a personal email but no respond to date so I'm trying through this forum. My live acount with EFX works great, its one of the better broker around.

2. Can you elaberate on Project Omega.

Thx.
4x piping
  • #332
  • Jan 16, 2007 11:48am Jan 16, 2007 11:48am
Quoting 4xTREASURE
Justin;
1. I signed up for a DEMO account, but whenever I tried logging in I received a error message stating "login rejected for reason: Invalid username" I have send you a personal email but no respond to date so I'm trying through this forum. My live acount with EFX works great, its one of the better broker around.

2. Can you elaberate on Project Omega.

Thx.
4x piping
Hello.

I apologize you have not received a response. Please email me at [email protected] with the username and password you are attempting to log in with.

At this time I am unable to provide any details about Omega.

Thank you,
  • #333
  • Jan 17, 2007 8:13am Jan 17, 2007 8:13am
justin i know you explain safety of funds on your website and here but what happens to our funds if mb trading/efx group goes bankrupt.

Thanks in advance.
If I Go Broke Trying Then I Will die happy.
  • #334
  • Jan 17, 2007 8:18am Jan 17, 2007 8:18am
Quoting jleblang
Hi nd1377 ~

We did recently release this charting software; http://efx.tradesecuring.com/Misc/EFX.asp. Have you had a chace to take a look at it? Our free charting should be out in the coming months.

With regards to Saftey of Funds:

MBTF/EFX is insured with a Fidelity Bond 14 from a member company of American International Group, Inc (AIG), which protects the assets of MBTF against loss resulting from fraudulent acts committed by the management of employees of MBTF. In the unlikely case from various types of fraud, theft, or embezzlement the Bond offers the protection up to $1,000,000 per occurrence.

Another feature of the fidelity bond is the 'Forgery or Alteration Agreement' covers loss resulting from forgery of a signature or alteration involving most types of negotiable instruments. Also, losses resulting from written instructions directed towards the insured that have been altered, or bear a false signature, are covered.

However, please be noted that the bond does not insure against risk exposure on market loss.

From an accounting and operating standpoint, customer’s non-margined Forex funds and MB Trading Futures, Inc.’s (“MBTF”) operating funds are separately maintained. MBTF maintains a separate account at Wells Fargo Bank, a federally insured bank, for the exclusive benefit of customers in which Forex funds that are not used to satisfy margin or trading requirements will be deposited for safekeeping. Forex funds that are held in the separate account will not be used in the day-to-day operations of MBTF. While Forex funds are separated from MBTF’s operating funds, they are not segregated as defined under CFTC regulations.

Wells Fargo is a diversified financial services company that provides banking and other consumer related services to more than 23 million customers through 6,200 stores, the internet and other distribution channels across North America and elsewhere internationally. As of June 30, 2006, Wells Fargo had total assets of $500 billion and a stock market valuation of $113 billion.
justin i know you explain safety of funds on your website and here but what happens to our funds if mb trading/efx group goes bankrupt.
If I Go Broke Trying Then I Will die happy.
  • #335
  • Jan 17, 2007 11:11am Jan 17, 2007 11:11am
While Forex funds are separated from MBTF’s operating funds, they are not segregated as defined under CFTC regulations.


So what this statement is basically saying is that although customer funds are kept in a different account than operating funds, the customer funds can still be used as operating funds if necessary.

While it is great that customer funds are in a different account, it still does little to ensure the safety of funds.
  • #336
  • Jan 17, 2007 3:50pm Jan 17, 2007 3:50pm
Justin

Monday was bank holiday and the spreads were tooo high according to you. But look at today:

AUDNZD=14 pips!!!!
EURAUD=17 pips!!!!
EURCAD=13 pips!!!
GBPCHF=16 pips!!!
GBPJPY=10 pips!!

am I missing anything here?. Why so rediculous spreads?. is there anyway to avoid these spreads?
=========================================================

Quoting jleblang
Rishi,

Thank you for your post, but I wouldn't really call Monday January 15th a regular trading day considering it was MLK Day and the US banks were closed.

Here are the same pairs and the spreads today on a regular trading day. Some will remain the same as the do not have much liquidity, but others are much tighter.

EUR/AUD 9
AUS/NZD 8
EUR/CAD 3
GBP/CHF 5
GBP/JPY 4
  • #337
  • Jan 17, 2007 5:35pm Jan 17, 2007 5:35pm
Like I said before in my last post, majority of clients trade the major pairs. Unless u see a strong intraday trend in the non-majors, u'd see RELATIVELY high spreads in the non-majors, a sign that many are not interested in it ATM.
CCI decipherer
  • #338
  • Jan 18, 2007 5:02am Jan 18, 2007 5:02am
I understand the concern many have about the spread of a particular pair, but in all fairness to EFX, the spread is bank determined. Here are the spreads of a few of the minor crosses as of about 1pm gmt.
Attached Image
  • #339
  • Jan 18, 2007 5:17am Jan 18, 2007 5:17am
Quoting Moe
justin i know you explain safety of funds on your website and here but what happens to our funds if mb trading/efx group goes bankrupt.
Justin you think we can get an answer on this today. thanks
If I Go Broke Trying Then I Will die happy.
  • #340
  • Jan 18, 2007 6:42am Jan 18, 2007 6:42am
MB Trading has told me if they go bankrupt, Forex funds are not PREFERRED creditors (like stocks, options, bond traders).. so the preferred creditors get paid first, if there is any money left over then the Forex people..
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