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MB Trading expensive?

  • #1
  • First Post: Jun 14, 2009 3:55pm Jun 14, 2009 3:55pm
Hi,

I often hear that trading with MB Trading is expensive. I don't understand why so maybe someone can explain it to me. If you trade EUR/USD 10 lots (1 standardlot) you have to pay:

100,000 currency (10 lots) x Deal Rate x $0.00005 =100,000x1,4017x0.00005= $7 or 5 EUR

That's approx 0.7 Pips.

Additional you have to pay the spread. As far as I have monitored the spread on the homepage it moves between 0.2 and 0.9 pips. This means you have to pay 0.9 pips up to 1.6 pips per halfturn. That's a lower spread than most of the bucket shops offer. When I add the low spread to the status of an ECN plus MT4 MB Trading seems to me very attractive.

So am I wrong?
  • #2
  • Jun 14, 2009 4:06pm Jun 14, 2009 4:06pm
Well, it's expensive compared to other, higher volume ECNs, but you have to have larger trades / bigger deposits on those systems.

It'd be nice if MB Trading had more clear for higher volume trades that were competitive with other ECNs so that we could do small and large trades on one system.
  • #3
  • Jun 14, 2009 4:18pm Jun 14, 2009 4:18pm
Quoting blazespinnaker
Well, it's expensive compared to other, higher volume ECNs, but you have to have larger trades / bigger deposits on those systems.

It'd be nice if MB Trading had more clear for higher volume trades that were competitive with other ECNs so that we could do small and large trades on one system.
Thx for your answer. So it's right that MB Trading claims lower transaction costs than bucket shops?
  • #4
  • Jun 14, 2009 4:34pm Jun 14, 2009 4:34pm
Well, they have sucky rollover swaps I believe. You can't really carry trade on MB Trading.
  • #5
  • Jun 14, 2009 4:56pm Jun 14, 2009 4:56pm
Most pairs have NEGATIVE swap on both sides!! - I dont care about making money on swap but usually the gains help minimize the swap losses. It sucks to lose on every trade (EURUSD) - the swap then become another expense + spread + commision
  • #6
  • Jun 14, 2009 10:01pm Jun 14, 2009 10:01pm
Hello,

Here's an actual trade from last Thursday. I traded 100,000 EURUSD and it cost me 7.05, BUT keep in mind that's one-way. So round-trip that is $14.10.

Trading GBPUSD is more. I usually pay $16.44 round trip for 1 standard lot of GBPUSD, and i very rarely get spreads under 2.

But keep in Mind you get what you pay for!!!

I've traded MB along side a "typical" bucket shop broker and there is a big difference. I often watch price move drastically with MB, but have little action with the bucket shop. It's like you don't get the benifit of the entire move with the bucket shop, which is a big deal if you are an Intra-Day Trader.

Which brings up a good point. Simply, do people really think they can use MT4 charting for daytrading, but use another broker (say Oanda) to trade???

Brent

Quoting MCFly
Hi,

I often hear that trading with MB Trading is expensive. I don't understand why so maybe someone can explain it to me. If you trade EUR/USD 10 lots (1 standardlot) you have to pay:

100,000 currency (10 lots) x Deal Rate x $0.00005 =100,000x1,4017x0.00005= $7 or 5 EUR

That's approx 0.7 Pips.

Additional you have to pay the spread. As far as I have monitored the spread on the homepage it moves between 0.2 and 0.9 pips. This means you have to pay 0.9 pips up to 1.6 pips per halfturn. That's a lower spread than most of the bucket shops offer....
  • #7
  • Jun 15, 2009 12:04am Jun 15, 2009 12:04am
Not the best deal out there but a good place to start.
  • #8
  • Jun 15, 2009 2:14am Jun 15, 2009 2:14am
Hello everybody,

I don't hold positions overnight so the swap rate shouldn't be a problem. I have a 1 min scalping system and 1 hour intraday system. I heard alot of aweful things about bucket shops and the only bad things I heard about MB Trading are the high transaction fees and maybe some platform problems.

Charting with MT4 and trading on another platform could work. I have checked Oanda as probably the best bucket shop broker. They seem to show the same behavior like the rest of the market maker: stop hunting, acc closing when you are successful...
Another thing is that they claim a 1 pip EUR/USd spread but normal is 2.5 and higher (that's what I have read. I have no experience with Oanda).
This would mean I have to pay $ 25/ 18 EUR per halftrip.

Choosing a broker for forex is really tricky.
  • #9
  • Jun 15, 2009 6:27am Jun 15, 2009 6:27am
Quoting MCFly
Hello everybody,

I don't hold positions overnight so the swap rate shouldn't be a problem. I have a 1 min scalping system and 1 hour intraday system. I heard alot of aweful things about bucket shops and the only bad things I heard about MB Trading are the high transaction fees and maybe some platform problems.

Charting with MT4 and trading on another platform could work. I have checked Oanda as probably the best bucket shop broker. They seem to show the same behavior like the rest of the market maker: stop hunting, acc closing when you are successful...
Another...
You might consider FXDD also. A bucketshop, but I consider them the best of the buckets. EU for example, no commission, 2 pip spread, but you can get rebates for 0.5 pip, so it comes out the same or better than MB, at least on that pair. If you don't know about how to get the rebates and want to know, you can PM me as I doubt I can post a link for that here.

I had an account with MB and closed it due to high commissions, but also what I considered slow execution that often resulted in bad slippage. At FXDD (not my only broker by the way), I almost always get the price I click, unless it's around news or some extreme volatility.
  • #10
  • Jun 16, 2009 9:03am Jun 16, 2009 9:03am
Quoting TC East
You might consider FXDD also....
Hi,

I would prefer to trade with FXDD currenex but you need $25000 to open an acc. I read some bad things about trading with FXDD as market maker.

Do you often considered slow execution? Thought ECN broker have the fastest execution.

I still don't get it why MB Trading is expensive. Is it worng to calculate with 0.9 to 1.6 pips for EUR/USD per halfturn?
  • #11
  • Jun 16, 2009 9:17am Jun 16, 2009 9:17am
Its easy with USD-based pairs like eur/usd, if eur/usd is at 1.4045 you pay 1.4045 pips per roundturn (with MBT commissions). For other pairs like usd/jpy its different.

If its expensive everyone can decide for themselves, other firms that are cheaper like IB or Hotspot do not offer trading small amounts at all or have a minimum charge per ticket so that they are even more expensive for smaller amounts (like <100K). If you trade bigger than that, then it is definitely expensive.

Its the same like everywhere else, like stocks or futures, smalltime traders pay higher commissions everywhere.
  • #12
  • Jun 16, 2009 10:33am Jun 16, 2009 10:33am
Quoting MCFly
Hi,

I would prefer to trade with FXDD currenex but you need $25000 to open an acc. I read some bad things about trading with FXDD as market maker.

Do you often considered slow execution? Thought ECN broker have the fastest execution.

I still don't get it why MB Trading is expensive. Is it worng to calculate with 0.9 to 1.6 pips for EUR/USD per halfturn?
Here's the accurate way to look at it. Most of the time when I trade EURUSD during normal trading hours on MB, the spread is under a pip. So, let's call it 0.8, I think I've seen a few reports with that as an average. Shrike is correct...if you are on the $5 rate at MB, then you are essentially adding 1.4 pips roundtrip, so the net would be 2.2 roundtrip on the EURUSD (spread plus roundtrip commission).

So compare that to brokers at 2 pips and it's essentially a wash, except that with MB, no games, lots of order types, no slippage, you can execute between the bid/ask with Limits, and they have been around a long time and known as a reputable company.

And of course, volume traders don't pay $5 per $100,000 with them, so it's really even cheaper for the bigger players.
  • #13
  • Jun 16, 2009 11:08am Jun 16, 2009 11:08am
Quoting IndyTrader
Here's the accurate way to look at it. Most of the time when I trade EURUSD during normal trading hours on MB, the spread is under a pip. So, let's call it 0.8, I think I've seen a few reports with that as an average. Shrike is correct...if you are on the $5 rate at MB, then you are essentially adding 1.4 pips roundtrip, so the net would be 2.2 roundtrip on the EURUSD (spread plus roundtrip commission).

So compare that to brokers at 2 pips and it's essentially a wash, except that with MB, no games, lots of order types, no slippage, you can execute...
Thx that helps alot.

Atm I'm monitoring 3 brokers. MB Trading and ATC both ECNs with MT4 and wh selfinvest an european market maker with capital protection and good client reviews.
  • #14
  • Jun 16, 2009 12:36pm Jun 16, 2009 12:36pm
Hi MCFly,

you can check the currenex website and look under white label partners, should give you some good choices as well.
  • #15
  • Jun 16, 2009 1:25pm Jun 16, 2009 1:25pm
Quoting aiyahmarklah
Hi MCFly,

you can check the currenex website and look under white label partners, should give you some good choices as well.
Okay I will do it. Thx.
  • #16
  • Last Post: Jun 17, 2009 7:37am Jun 17, 2009 7:37am
Quoting Fulltime247
Most pairs have NEGATIVE swap on both sides!! - I dont care about making money on swap but usually the gains help minimize the swap losses. It sucks to lose on every trade (EURUSD) - the swap then become another expense + spread + commision
As I don't have account with MBT and their swaps can only be seen inside their software, could you (or someone else) please post a screenshot showing swaps for majors? I'm thinking of using them as my next broker (their leverage is very good) but the swaps are a bit of an issue for me.

Thanks!

edit: hmm found this, is this accurate? http://www.elitetrader.com/vB/showth...hreadid=152163
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