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Attachments: Biggest Spread in MBTrading
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Biggest Spread in MBTrading

  • Post #1
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  • First Post: Mar 28, 2008 2:52am Mar 28, 2008 2:52am
Hello Guys.. I'm just wanna share about MBT. They are ECN broker and some people claim MBT is the best broker for News trading. I've tried to trade demo account with them, and although MBT do have fast execution (1-3 sec), but their SPREAD are HUGE during NEWS time. At FOMC interest rate this 18 march'08, i got 40 pips spread for GBP/JPY. How can I gain profit with this (not mentioned the commission). Even oanda didn't have such big spread. Please share your comment and biggest spread experience with MBT (with news time, pips, pair). Thanks guys...
I'm not talking about the demo account. I mean with that big spread condition plus commission, i don't think we can get good profit (with live account of course).
I'm not sure what you want people to say, the spread gets big, talking about it isn't going to change it. If the spread is huge during the news, you can't trade the news, end of story.
The breaking of a wave cannot explain the whole sea.
  • Post #4
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  • Edited 12:00pm Mar 28, 2008 11:17am | Edited 12:00pm
Here's a chart of that time period.

The bars are on a 5 second timeframe.

I see the opporunity to go short (short at bid) over a period of 4 bars (20 seconds) and an opportunity to cover at ask "at the low" (again over a period of 4 bars) for a minimum of 155 pips profit.

Bar data:
open = bid
low = bid
close = bid
high = highest "best ask" during the 5 seconds

Was there a huge spread? Looks like it got pretty wide (not as wide as these bars, but no wider).

Buyer's bids dropped faster than seller's offers. Then "spread" tightened up as sellers offers closed in on buyer bids.
Attached Image (click to enlarge)
Click to Enlarge Name: FOMC.PNG Size: 22 KB
Yes. Spreads get big during news times from any "legit" broker who is not a market maker.

I saw 18+ pips on NZDUSD last night on MBT. This is just part of the game and part of the risk of trading around news events.

Check out the spread on currency futures during big news reports such as NFP, they get into the hundreds of pips!
Foremy,

If you could only use search function on this thread or maybe Google, you wouldn't ask the same question that's been answered thousands of times with explanations why it actually happens. But no, every now and then someone like you comes along asking the same question.

Don't mean to bash you,

FA
guys, thanks for the input.

My reason to put this thread so people can be aware the spread of trading news event especially with MBT. I don't have anything against MBT, in fact i'm one step further to open live account with them.
I'm a news trader and use 50%-80% of my margin. Therefore, spread awareness is crucial for me to allocate margin used in each news event so my trade wouldn't get margin call.
I'm sure there are traders same with my style, and i'm hoping this thread can be useful for them to.
Please share your experience with MBT the specific news event and spread happens due that time.
Thanks guys!
Trading the news is a higher risk with any broker...If u live in eastern standard time (north america) you'll find the easiest trades are after the news / before news.....5am to 8:15am. Good brokers with best spreads are; Interactive Brokers, EFX & MB Trading which are true ECN's not manipulated like FXDD and others.

Happy trading,
Peter
dude...if you see huge spread during the news...its because the broker is genuine ..yep...just read the detailed history on news spread by very smart people here on FF start with sticky..good luck
MB Trading, IMO is one of the best brokers out there, Top 5 in fact.

I have more than a few clients there and get less platform/trading related complaints there than any of the other brokers I work with.

We have an advanced program at MB that allows you to minimize that commission that you seem to be throwing in the mix as well..
Boston,

Are you an IB?
Quoting fxtrader42
Boston,

Are you an IB?
Does that really need to be asked? JK, sure sounds like one
the reason spreads r larger is that the MM's aren't in the business of giving away their money and the big money ( institutional ) doesn't trade like u do and the MM's know what's going on thus take advantage, simply they r willing to take ure action but at a higher spread...so don't trade GBP/JPY big news

Peter
Quoting fxtrader42
Boston,

Are you an IB?
, i think so, thats all he does is promote broker's he's an ib for.
If I Go Broke Trying Then I Will die happy.
Quoting Moe
, i think so, thats all he does is promote broker's he's an ib for.
Am I laying it on too thick for you guys? I can do nothing but good things for each and everyones trading -- there is no malice or dishonesty in any of my posts and my years in the industry have inspired me to point traders in the right direction.

My apologies to anyone who seeks them
Quoting BostonForex
Am I laying it on too thick for you guys? I can do nothing but good things for each and everyones trading -- there is no malice or dishonesty in any of my posts and my years in the industry have inspired me to point traders in the right direction.

My apologies to anyone who seeks them
Please tell me what good an IB can do for me. Oh thats right you can give me a rebate for all of my trades. This proves that you do not do anything for a trader. Your only way of getting clients is by paying them. Does anyone else see the disconnect here? See when you provide a service to someone they usually pay you not the other way around. BTW what kind of rebate do you give for those traders you introduce to MB Trading? For all of you out there, do not go through an IB unless they truly offer you a service that impacts your trading in a postive way. Most of them dont do that. In fact when the new regs come out you will see most IB's phased out and only the ones that truly offer a great service will be left. FCM's will also start to cut out IB's as their profits dwindle as the market consolidates. For example, Boston's firm is registered with the NFA as a CTA not an IB. This means they will no longer be able to introduce business unless they register as an IB. The reason Boston's firm is a CTA and not an IB is because they can say they are properly registered (even though they are not properly registered) and because it is 40X cheaper. Not to mention a lot easier.

Boston - you advertise on your website that you give rebates of 3.50 to 4.00 per standard lot. Can you do the same thing for MB Trading?
hahahahhaha! taking the easy way out!

that was a pretty good rant mate! enjoyed it

i agree that new regulations are gonna push these spread rebate scams that claim to be IBs out of the picture.

Also as more firms move away from the old fashion dealing desk model and towards STP type models there will be less spread to go arround making it near impossible to give a rebate large enough for someone to "go through said IB" AND have it worth it for the IB to give up so much of their rebate...

I agree that you will have to perform a service whether it is education or signals or something more creative.

Pony up the 40k and committ to a your business and do something useful!
Quoting fxtrader42
Please tell me what good an IB can do for me. Oh thats right you can give me a rebate for all of my trades. This proves that you do not do anything for a trader. Your only way of getting clients is by paying them. Does anyone else see the disconnect here? See when you provide a service to someone they usually pay you not the other way around. BTW what kind of rebate do you give for those traders you introduce to MB Trading? For all of you out there, do not go through an IB unless they truly offer you a service that impacts your trading in a postive way. Most of them dont do that. In fact when the new regs come out you will see most IB's phased out and only the ones that truly offer a great service will be left. FCM's will also start to cut out IB's as their profits dwindle as the market consolidates. For example, Boston's firm is registered with the NFA as a CTA not an IB. This means they will no longer be able to introduce business unless they register as an IB. The reason Boston's firm is a CTA and not an IB is because they can say they are properly registered (even though they are not properly registered) and because it is 40X cheaper. Not to mention a lot easier.

Boston - you advertise on your website that you give rebates of 3.50 to 4.00 per standard lot. Can you do the same thing for MB Trading?
I would really like to avoid forum drama -- but we are registered with the CFTC as an IB -- please refrain, again, from posting fallacies.

Fxtrader42, I understand that your multiple Forex accounts equate to millions & millions of USD but for the average retail trader who holds less than 20K, their account may not be held as highly at a clearing firms as your large accounts.

Charles Schwabb advertises on billboards:

"To most people, it's a small fortune; To my broker, it's nothing"

This holds true in Forex -- for those who don't have 6-figure forex accounts and want to be treated with the respect they deserve from a firm, they have the option of using a high-quality IB with strong relationships in the industry.

A 5K account at a big firm is nothing to them -- under and IB with 5 million USD worth of clients at a firm, you now have more clout and multiple contacts to utilize when the clearing firm abuses you.

In an industry growing as fast as Forex, and with shops closing their doors left and right, I'm more comfortable keeping my account at an IB to take care of my problems through their connect at the FCM instead of calling and getting a customer service rep.

But with those huge accounts, you must be calling directly to the COO at your FCM, is that correct fxtrader42?

I'm not on here to scam anyone nor get caught up in forum BS -- I will continue to post my input, as I know to be factual, on the boards and hope that any issues are dealt via PM instead of wasting server space
You see Boston, YOU ARE NOT REGISTERED AS AN IB. If I were you I would stop posting on here as you dont have a service and you are not even a trader. Be gone.
Quoting BostonForex
I would really like to avoid forum drama -- but we are registered with the CFTC as an IB -- please refrain, again, from posting fallacies. Who is posting fallacies, me or you?
http://www.nfa.futures.org/basicnet/...irm&firm=NCMFX



Fxtrader42, I understand that your multiple Forex accounts equate to millions & millions of USD but for the average retail trader who holds less than 20K, their account may not be held as highly at a clearing firms as your large accounts.

Charles Schwabb advertises on billboards:

"To most people, it's a small fortune; To my broker, it's nothing"

This holds true in Forex -- for those who don't have 6-figure forex accounts and want to be treated with the respect they deserve from a firm, they have the option of using a high-quality IB with strong relationships in the industry.

A 5K account at a big firm is nothing to them -- under and IB with 5 million USD worth of clients at a firm, you now have more clout and multiple contacts to utilize when the clearing firm abuses you.

In an industry growing as fast as Forex, and with shops closing their doors left and right, I'm more comfortable keeping my account at an IB to take care of my problems through their connect at the FCM instead of calling and getting a customer service rep.

But with those huge accounts, you must be calling directly to the COO at your FCM, is that correct fxtrader42?

I'm not on here to scam anyone nor get caught up in forum BS -- I will continue to post my input, as I know to be factual, on the boards and hope that any issues are dealt via PM instead of wasting server space
type in one of the krona pairs after 5 EDT. and look at 100 pip spreads throughout the night. ie usd/nok, usd/sek.
There are better ways of trading than the news and hoping that you gamble the right way. I 've been impressed with the quick fills when I traded the news at MBtrading, but it isn't a consistently winning strategy. It is a live account.
Trade the support resistance and trendlines, sell the rallies with the yen and buy the dips with the Euro.
and look out for the Euro to drop, after the G7 summit, since they won't lower rates to prop up the USD, and the USD won't prop itself up in spite of the wheres the beef comments from Paulson.
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