What is MB Trading FX Commission? | Forex Factory

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What is MB Trading FX Commission?

  • #1
  • First Post: Jan 18, 2010 4:33am Jan 18, 2010 4:33am
They say that they are true ECN broker, with 2'95$ of commission of each lot. They animate you to open a demo MT4 ECN account that they say it's equal of live MT4 ECN, but when you open a mini lot you can see that:

http://img690.imageshack.us/img690/6271/mb1r.jpg

You can trade with MICRO lots!!! And THERE IS NO micro lots in real interbank market. But this is not all, if they change mini lots for micro lots, 1 real lot is in their demo 10 lots, so I open a possition with a real 1 lot and surprise:

http://img690.imageshack.us/img690/2521/mb2s.jpg

REAL commission isn't 2'95$, IS 4'24$!!!

I conclude that they are not a really ECN broker, but an ECN like broker, and plus the spread they charge you a higher commission than they say they'll charge you when you open an account. Be aware of that.
  • #2
  • Jan 18, 2010 7:51am Jan 18, 2010 7:51am
Any agent of MB trading can specify why if the minimum lot size to trade directly in interbank is 10K units, and with the maximum leverage that the offer (1:100), the margin requirement for the minimum lot size of EURUSD for example is right now 143$, why can I open a position with only 14$ of margin in their demo account if the MT4 ECN demo account is like the live one that they offer? This is only possible with OTC market makers that offer micro lots, not with mini lots of ECN/STP.

Please answer.
  • #3
  • Jan 18, 2010 9:27am Jan 18, 2010 9:27am
Quoting Trad3r
Any agent of MB trading can specify why if the minimum lot size to trade directly in interbank is 10K units, and with the maximum leverage that the offer (1:100), the margin requirement for the minimum lot size of EURUSD for example is right now 143$, why can I open a position with only 14$ of margin in their demo account if the MT4 ECN demo account is like the live one that they offer? This is only possible with OTC market makers that offer micro lots, not with mini lots of ECN/STP.

Please answer.
That's not a true statement. It has been hashed to death on these forums. Please go away and do some real research. A year ago, it was "MB Trading can't be a real ECN because they trade minis and the Interbank market only does full lots." Now it's "They can't be real because they trade micros and the Interbank market only does minis."

Truth is, the brokers put up a deposit with the banks with which they have relationships in order to trade with them, and they can negotiate to trade in any increment.
  • #4
  • Jan 18, 2010 9:50am Jan 18, 2010 9:50am
Quoting Trad3r
Any agent of MB trading can specify why if the minimum lot size to trade directly in interbank is 10K units, and with the maximum leverage that the offer (1:100), the margin requirement for the minimum lot size of EURUSD for example is right now 143$, why can I open a position with only 14$ of margin in their demo account if the MT4 ECN demo account is like the live one that they offer? This is only possible with OTC market makers that offer micro lots, not with mini lots of ECN/STP.

Please answer.
Trad3r,

I'm curious why you think the minimum lot size in the interbank market is 10k units? Did you read that on some forum, or are other brokers saying this now?

BTW - this is FOREX, there is no Interbank market. Each broker has their own agreements with their liquidity providers and due to the long and successful relationship we've had with our banking partners, we were able to develop terms in which they accept such orders.

A year ago the complaint was "its impossible to trade less 100k if you are an ECN....now all of sudden its impossible to trade less than 10k. What's next?
  • #5
  • Jan 18, 2010 9:56am Jan 18, 2010 9:56am
Quoting jleblang
Trad3r,

I'm curious why you think the minimum lot size in the interbank market is 10k units? Did you read that on some forum, or are other brokers saying this now?

BTW - this is FOREX, there is no Interbank market. Each broker has their own agreements with their liquidity providers and due to the long and successful relationship we've had with our banking partners, we were able to develop terms in which they accept such orders.

A year ago the complaint was "its impossible to trade less 100k if you are an ECN....now all of sudden...
uhhhh, how about "You can't have straight through processing with MT4!" LOL! Sorry I just couldn't resist.

I don't envy you constantly having to defend MBTrading. Great company.
  • #6
  • Jan 18, 2010 10:16am Jan 18, 2010 10:16am
Quoting magnumfreak
uhhhh, how about "You can't have straight through processing with MT4!" LOL! Sorry I just couldn't resist.

I don't envy you constantly having to defend MBTrading. Great company.
I like to think I'm educating and clearing up misconceptions - yeah that its.
  • #7
  • Jan 18, 2010 10:19am Jan 18, 2010 10:19am
Quoting Trad3r
Any agent of MB trading can specify why if the minimum lot size to trade directly in interbank is 10K units, and with the maximum leverage that the offer (1:100), the margin requirement for the minimum lot size of EURUSD for example is right now 143$, why can I open a position with only 14$ of margin in their demo account if the MT4 ECN demo account is like the live one that they offer? This is only possible with OTC market makers that offer micro lots, not with mini lots of ECN/STP.

Please answer.
If you got that information from an individual, might want to clear things up with him. If you got that information from someone at another firm, please give me the name of the company and person and I'll call them up and explain to them how their market works.
  • #8
  • Jan 18, 2010 10:21am Jan 18, 2010 10:21am
Quoting jleblang
If you got that information from an individual, might want to clear things up with him. If you got that information from someone at another firm, please give me the name of the company and person and I'll call them up and explain to them how their market works.



Nice answer. LOL. Bunch of trolls.
  • #9
  • Jan 18, 2010 1:00pm Jan 18, 2010 1:00pm
Quoting Trad3r
They say that they are true ECN broker, with 2'95$ of commission of each lot. They animate you to open a demo MT4 ECN account that they say it's equal of live MT4 ECN, but when you open a mini lot you can see that:

You can trade with MICRO lots!!! And THERE IS NO micro lots in real interbank market. But this is not all, if they change mini lots for micro lots, 1 real lot is in their demo 10 lots, so I open a possition with a real 1 lot and surprise:

REAL commission isn't 2'95$, IS 4'24$!!!

I conclude that they are not a really ECN broker,...
WTF cares if you can trade smaller lots? Is MB Trading closing your trades or delaying execution when you profit on smaller trades like a bucketshop might on larger trades? No, so why the hell does it even matter? Of course, I wouldn't expect someone who hasn't even traded with them in a live environment to know that. Just bitch and make accusations based on the demo.

Commission is $0.295 per lot per SIDE of the trade, and you also have to multiply that by the exchange rate for most currency pairs (such as EUR/USD). How about you people do your goddamn math right before spamming up the boards with these incessant attacks? But considering how many people don't even understand that a change from 100:1 leverage to 10:1 leverage = a 10x increase in required margin ... it doesn't surprise me that most can't even do a simple thing like calculate the rollover fee ... or in this case, the commission, either.
  • #10
  • Jan 19, 2010 7:30am Jan 19, 2010 7:30am
Quoting jleblang
BTW - this is FOREX, there is no Interbank market.
That's the question, Forex is a zero-sum game so, against who I'm trading in your ECN platform?

Against other clients of MB Trading? If this is the case, what happens if you can't hedge my position to another client? Then you take the other part? If this is the case there are no differences between you and a market maker: you hedge positions with clients and you want that your clients lose, because if they win you lose money (if all clients win you can't hedge that win positions with loser ones, and you go to bankruptcy and all clients lose their money)

And if you are sending my orders to a bank, for example, I sell 1000 units with margin of 1:100, a micro lot with 14$ of margin when EURUSD is at 1'4, then, you go to a bank and say hey guys I want that you change me 1000 euros for 1400 dollars, and when i close the position when EURUSD is at 1'435 you go to the bank and say hey guys give me back my 1000 euros and I'll give you 1350 dollars? If this is the case then your liquidity providers lose money when your clients are profitable, and they gain money when your clients lose, so they will mantain contracts with you while your clients lose money.

Tell me where are the orders sent in your ECN platform.
  • #11
  • Jan 19, 2010 10:44am Jan 19, 2010 10:44am
Quoting Trad3r
That's the question, Forex is a zero-sum game so, against who I'm trading in your ECN platform?

Against other clients of MB Trading? If this is the case, what happens if you can't hedge my position to another client? Then you take the other part? If this is the case there are no differences between you and a market maker: you hedge positions with clients and you want that your clients lose, because if they win you lose money (if all clients win you can't hedge that win positions with loser ones, and you go to bankruptcy and all clients...
Trad3r,

This has all been discussed for years on our main thread, so please search through it instead of taking up another thread for repeated information. Our system sends your order to whatever destination offers the best price and fastest response at the time your order is placed and marketable. For example, if you go to buy 10 lots EURUSD at the market and there is a seller in the form of another customer for 10 lots on the ask, your order will match off with that trader as it is the best price and sitting right on the ECN for immediate execution. If there are no customer orders at the ask, then the system routes your order to whichever banks are sitting on the ask. Your question shows a complete lack of understanding of the process, however, and here’s why. Your question implies that when you buy and then sell, either you made money or the bank/desk/customer on the other end did. That would be true of a deal desk or even an STP platform that is a front for one bank. However, that is not the case here because your buy order might get routed to one bank and your sell order when you close the position could get routed to a different bank based on who is on the bid at the time. Heck, you might even buy from a customer and sell to a bank. There’s no “round tripping” on an ECN/STP platform where one entity is the offset for all trades. If a bank really wanted to be the offset on just about all of our trades, there is one way they could try to do this, which would be to display their orders with a 0.1 pip spread or something like this. Now they would be the best bid and best ask all day long and most of the orders would get routed to them. But the reality is that beyond the old school deal desk world, this isn’t how forex works. A bank that is trying to sell EURUSD would put their quote so that they are the best ask on our system, and if they want to sell more, they lower the price until buyers hit them. They aren’t looking to buy at all in that case…they have a position to sell or they want to get short themselves.
  • #12
  • Jan 19, 2010 12:17pm Jan 19, 2010 12:17pm
^ Possibly the best post that has ever been written here.

If that explanation doesn't shut the cynics up, I don't know what will.
  • #13
  • Jan 19, 2010 12:22pm Jan 19, 2010 12:22pm
Quoting kibescorp
^ Possibly the best post that has ever been written here.

If that explanation doesn't shut the cynics up, I don't know what will.
Nothing will. That's why people like Trad3r exist...to never understand how it works.
  • #14
  • Jan 19, 2010 1:21pm Jan 19, 2010 1:21pm
Quoting jleblang
Trad3r,...

Thanks for the response, I will continue asking you some doubts in the "official" MB trading thread.
  • #15
  • Jun 7, 2010 7:00pm Jun 7, 2010 7:00pm
Hi jleblang,

What is the minimal lot size I can place in MT4 and MBT Nav Pro (Forex only)? I would like to hear clearly from you because there are too many messy information around the net. Some said 0.01 for MT4 and 0.1 for MBT Nav Pro.
  • #16
  • Jun 7, 2010 10:54pm Jun 7, 2010 10:54pm
considering open an account at MB Trading, I think MB Trading is good but their commission is too high.($10 per $100,000 round trip)
Does someone have experience with them? or recommend some reliable brokers, with whom i can trade 10K or less per lot.
Thanks!!!
  • #17
  • Jun 8, 2010 9:58am Jun 8, 2010 9:58am
Quoting Sharni
considering open an account at MB Trading, I think MB Trading is good but their commission is too high.($10 per $100,000 round trip)
Does someone have experience with them? or recommend some reliable brokers, with whom i can trade 10K or less per lot.
Thanks!!!
My recommendation is that before you open an account with a broker, you at least visit their website to gather information. Clearly, you haven't been there yet, as their commissions are not $10 per $100,000. All you have to do is go to their homepage to see that. Where are you doing your research?
  • #18
  • Jun 8, 2010 12:28pm Jun 8, 2010 12:28pm
Quoting Sharni
considering open an account at MB Trading, I think MB Trading is good but their commission is too high.($10 per $100,000 round trip)
Does someone have experience with them? or recommend some reliable brokers, with whom i can trade 10K or less per lot.
Thanks!!!
Sharni,

We lowered our commissions 6 months ago or so to $2.95 per 100k traded.

http://mbtrading.com/commissions.aspx
  • #19
  • Jun 8, 2010 2:20pm Jun 8, 2010 2:20pm
LOL, I forget this thread, I opened it many months ago when I thought that MBT were a bucketshop of Las Vegas.

I have to say that commissions may be a little high, but they are true ECN broker, you are not trading against them, they don't manipulate prices or spread, if you are thinking to begin in forex I recomend them, ECN will provide you a realistic environment of trading. Only few problems with Metatrader and sometimes with liquidity, I prefer Navigator Pro to trade. But they are (till now) reliable. Regards.
  • #20
  • Edited 3:37am Jun 9, 2010 3:20am | Edited 3:37am
Quoting jleblang
Sharni,

We lowered our commissions 6 months ago or so to $2.95 per 100k traded.

http://mbtrading.com/commissions.aspx

Hi jleblang,

Is metatrader and Navigator Pro have different liquidity?

regards
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