MB Trading Futures - Introduction

the comm. is 50 $ / 1 m $ per side , right ?

at what monthly volume i will have a dicount ?

they charge 1 pip per round turn... its the easiest way to look at it. Most other ECN's charge somewhere between .2 -.5 pips. However, most dont allow 500 dollar accounts. As far as I can tell that would be the only reason to use MB.

For the EUR/USD it is more like 1.3 pip RT

No it is not, it is 1 pip. The value of that pip in dollars is around 1.30$.

Do any ECN's charging smaller commission have MT4 platforms, or some api that could be used with a robot? I would be interested in the names if you would share.

1 pip @ EUR/USD mini lot = 1 $

Jleblang , another question please , what about account protection or clients money segregation ?

thanks ...

Tar ~

Please email me at [email protected].

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.

thats mean clients money r not protected by the gov. , right ?

i sent u an email ...

Hi Justin,

Any updates on MBT web & mobile navigator?

Still in beta with a private select group - -feedback has been positive, but as far as time tables for release, I think we all know by now I prefer not to give any.

That's fine, good to hear progress is being made. I was devastated when I couldn't trade on the EFX web navigator anymore, as that was the only way I could trade during my full-time work hours

Doing our best to get you back up and running.

Justin,

I heard the NFA is no longer allowing hedging in the same account. Will hedging still be allowed using two separate navigator account. How is this going to effect the metatrader platform after it goes live. Will we be able to open two metatrader accounts to continue to hedge our positions.

Marcus

Regarding hedging, I’d like to take the opportunity to cover a few points. We have been making the case for years that hedging is a concept that has no benefit to a trader but benefits the deal desks. The only purpose that it serves is an accounting purpose, in that a trader can use hedging to control which entries go with which exits. Here’s an example.

Trader buys EURUSD at 1.3000 and separately at 1.3050. Trader wants to sell at 1.3025 half of his position. On a desk, he can sell the 1.3000 at 1.3025 and lock in “25 pips of gain” while maintaining the 1.3050 position (which is 25 pips at a loss). Trader could also “hedge” by going short at 1.3025 and then cover that position at 1.3000 on a pullback, locking in 25 pips of gain on the hedge, but maintaining the 1.3000 cost and the 1.3050 cost positions.

All of this is accounting and nothing more. The reality is that if you buy at 1.3000 and an equal amount at 1.3050, you have your total size at an average cost of 1.3025. If you sell half at 1.3025, you lowered your position to half of its size and still have a cost. Trying to assign your entries and exits doesn’t improve your profit.

In fact, it makes it worse. Consider this. Two examples of the same thing:

Deal Desk System:

You buy 10 EURUSD at 1.3000. It slips 30 pips to 1.2970. You think it might go lower for a bit, so you want to sell short 10 EURUSD at 1.2970. You don’t want to close the original position, so this is a hedge short at 1.2970. At this point, you are long and short equally and have no net gain from any movement on the EURUSD. You later close either position and lock in a gain or loss. This therefore requires 4 trades (two buys and two sells) total.

ECN System:

You buy EURUSD at 1.3000. It slips 30 pips to 1.2970. You think it might go lower, so you sell 10 EURUSD. The system now reflects your true position, which is flat. Two trades, a buy and a sell. No need to run more to get flat. If and when you decide to go long or short again, you place a new trade.

The NFA understands this and knows that the hedging concept forces additional trades that desks use to offset between customers and make spreads more and more. It is a bad practice, and they are putting an end to it, which is what we have said for years.

Having said that, the workaround for those that really feel the need is to open two accounts. You can be long in one and short in another. That will always be the case, as there is no way for the NFA to regulate what a customer is doing in the net of his accounts, and there shouldn’t be. The only thing that matters is that the brokers not be able to promote a concept that results in twice as many transactions for them for no reason.

any plans of lowering your commission? $5.00 per 100k is waaay above the other ECNs.

Could you be more specific on which ECN's you are referring to?

gain capital, dukascopy.

sure they have higher initial deposit requirements but the commission is cheaper

i tried to trade GBP/AUD using my demo account this morning and i took many trades to c how much slippage at this pair , and BTW the pair wasnt moving when i took my trades , i noticed 2 - 2.5 pips slippage in every trade ( entry , exit as well ) ...

GAIN Capital is STP, not ECN, but their spreads are somewhat comparable.

Still a valid point about commissions, specifically vs InteractiveBrokers (arguably MBT's primary competitor now that Hotspot was bought out).