Intransparent roll over rates at MB - Who knows how to derive the from benchmarks?

Hi there,

I am looking at the roll over rates of MB and noticing several things. First they are not good (to put it polite!, for example up to 275 bps difference to IB - short GBP/USD)

However, this seems to be one of the prices you pay to be trading with them. How can I derive them from benchmarks, or what is their algorithm (comparable to the info provided by ib (http://www.interactivebrokers.com/en...?ib_entity=llc).

It seems that their rates are especially bad, if you are short one some contracts. Surprisingly they have slightly better rates then ib for some contracts, if you go long (for example long GBP/USD:130bps). I just do not get their system. Who can help?

Pete

go over all feedbacks from forexpeacearmy and you should know this without researching it yourself...

usually it's for day trading/scalping and news trading with leverage.

if you plan a small position or no leverage for carry trading,

a good market maker or try get an "isl" account will be better isn't it?

High volume traders can get better roll rates (according to MB). This would suggest MB is keeping a split of the rolls from smaller traders as revenue, in addition to the commissions. And in addition to the interest on customer funds, which they keep too.

@shrike: Any idea, what would be considered high volume?

You can email them and ask for volume tiers, but think a few hundred million traded per month (thats where other brokers start talking anyways). Obviously, you need quite a big account to archive this with longterm trading, where rolls play a larger role than with short-term trading.