Broker denied me from opening an account

You were turned down because you probably answered "Novice" under the Trading Experience section coupled with the low deposit.

MBT is a ECN therefore they are looking for clients with experence and/or financial worth. I'm sure if you'd put up a few 1,000 dollars to the account they'd be glad to take you as a client. ECN work this way.

All in all I wouldn't worry about it. Do you really want to be associated with anyone who doesn't want your business. Take your business to someone who'll appreciate you and your money. Don't spend time thinking about this, its pointless. We all get denied for services.

I was once denied to open a Mico Account with FXCM because my net worth was high so they peer pressured me into opening an account with FXCM (regular). No chance in hell. If I'm not good enough for Micro, I know I won't be good enough for Regular.

Same goes with life. I don't do business with any company that once denied me employment nor do I invest in those companies. Move on to a broker like Oanda, they'll take you on as a client and they're a good broker.

Kidspips,

Our firm policies are based on regulatory standards and obligate us to review each and every account for suitability. We are required to assess the income, occupation, and investment experience to see if opening an account for someone is appropriate. To protect your privacy I won’t disclose anything about your personal situation, but if any of the responses to the multiple questions on our online application don’t meet the requirements set forth by our regulatory agents, we have an obligation to deem a client not suitable to trade in the FOREX markets with our firm.

If you would like to disclose to everyone here on the boards exactly how you responded to the questions, including your age and occupation, please feel free to. At least that way everyone would know the whole story.

Otherwise, understand that this decision had absolutely nothing to do with your deposit size. Our minimum deposit is $400 and has nothing to do with suitability when opening accounts. We have many people that start their accounts with this amount to test their MT4 EAs with microlots. We certainly don’t discourage people to test their systems this way. Since day one on these boards I’ve said, skip the demo and open an account with $400 to really experience the live environment with minimum risk. I think any person considering a new broker should take this advice regardless if it is with MBT or another firm. Demo trading is never the same as Live executions.

Okay.

My occupation is I am a student and my age is 21 years old. I have 1 years trading experience.

But what is the problem with it?

Your income proabably or your lack of liquid assets.
Only trade money you can afford to lose. The more income and liquid assets you have the more you can afford to lose.
If you don't have any of that it is the right thing for a broker to denie your account.

Come on, it weren't fx brokers who started the crisis

I know but you know what I mean. A student with no job or money? That's probably his money for books or something. Some people that defaulted on their mortgages begged to be approved and were furious when banks gave them a hard time. Then when they default it's the banks fault. I would be more cautious and worried if mbtrading actually approved him!

That is not what you put on the application. Again, I'm not about to give away your personal financial information on these boards, but even that short sentence you posted does not match what you put, and it is the reason that you were denied.

Maybe he's 12 and not 21. Not sure they let Junior High School kids trade. But from reading this thread, it sounds like half of the people out there think anyone out of the womb should be able to open an account even if they live on the street.

Why is this even a thread?

You should get your eyes checked because most replies here point to the fact that this poster is an immature idiot.

No forex for you! Come back in 2 years.


Sincerely,

CFTC

+1 this post

would be better this way:

Best Wishes,
CFTC

Most ECN brokers have this kind of income requirement for their customers.

I heard that you need at least $25000 net asset proof with liquid asset (cash available in 24 hours) of $15000 to open an account with PFG. so it's not just MBT.

I initially opened an oanda account, then fxcm, then forex.com. Oanda cancelled my account after a week, fxcm cancelled my account after a month. forex.com closed my account 4 days after opening it. So now I am out of usa forex brokers. They refused to give me any reason why they were cancelling my account and I cannot find any kind of information online as to why. Any ideas?

Orabi, as he's speaking of US brokers, he must be a US resident, he won't be accepted pretty much anywhere outside the US. It's pretty sick by the way, but it's like this.

fxxxx, that's pretty impressive ! I would love to have more details on the kind of trading you were doing to be kicked out by brokers like this. If you didn't open an ECN account with FXCM, you were dealing with 3 market makers, and obviously they didn't like what you were doing. Were you winning money ?

If you have $10K to deposit, you can try Interactive brokers.

ha ha! NO! I was losing money. I made some great wins, but also some medium sized losses and many small losses. Enough that it was a loss overall. I am new to forex. I've read several books, and am just trying to get out there and develop my trading. I placed a ton of trades, so it's not like they weren't getting their pips out of me. Being that I didn't have a lot of money, I did play close to margin, but it's not like that puts them in any kind of danger. They will just close your position if you get to close. I wasn't scalping, but I was trying to chase some bounces and corrections and news release chaos. So sometimes I would be placing many buy & sell orders in short time frames going back and forth (which is probably amateur hour, but what can I say I am an amateur). Forex.com - I opened the account, and at that time I didn't have my wallet with me, so I put off the deposit, and was busy so didn't get to it for 3 days, and they cancelled my account. I tried to get on there today for the big FOMC meeting results and this time I deposited right away, and got an email an hour later saying they couldn't offer me an account. I've racked my brain to come up with possible reasons - they didn't like that I had less than 500 in my account, they didn't like my fast buy sell transactions (which my understanding of scalping is much more fast and usually is when you have a inconsistency in price while trading with two different brokers), I played close to margin (mostly on fxcm), maybe they do a credit check (but I don't think they do), I put that I had several years experience trading fx, futures, stocks, maybe they want more, or maybe they want none (no idea there), maybe they all have lists of people they don't want and they share with eachother (doubt that), I used indicators and other advanced trading methods but not consistently (maybe they want you using all that shit), I had my pc on with trades going nearly 24hours a day (maybe they didn't like that), I put my income as 50k/year and networth at 75 - maybe they want more. I never used the practice account because that is just creating unrealistic psychology (no real pressure when it's fake money - my real life trading will be much different) - maybe they want you to practice. To be honest I have no freaking clue. Super frustrating to read up, and get all stoked to try to make a living off forex and in the very beginning when I am just getting my feet wet - get blocked out of all the usa brokers. I contacted forex broker inc. and they said they'd take me - they are out of Europe so maybe. Peppermint is in Australia and said no. Any thoughts would be greatly appreciated!!!! We all had to start trading somewhere, I know I am not a super trader, but would like to get there someday.

I don't get it.
Someone has been denied from opening an account and this is bad news ?
If only all fx brokers would start refusing new accounts, the net worth of entire countries would go sky high !
All that money not lost would restore entire economies (not to mention a huge increase of well being and prosperity for the individual NOT doing forex)

Fxxxx: I understand your frustration. Now it doesn't make much sense, as forex brokers are here to do some business and earn some money for themselves. So why would they refuse you/kick you out, unless you have trading practices that is a problem for them (usually loss making for them) is ILLOGICAL. According to what you're saying, nothing you're doing in your trading seems to be "problematic".

Just for your information, "scalping" is doing very short trades, usually very often. It's not a problem for brokers usually, and you're right, they earn money each time a trader enters/exists a positions through the spread. Using an "inconsistency in price while trading with two different brokers" is "arbitraging". You take advantage of 2 different prices on the same product to do a risk free trade. Or you can trade only on one broker using the information provided by the other feed. This is a practice perfectly fine and legal, and even useful on markets, as it provides liquidity and make the markets more efficients by correcting discrepancies. But for a market maker, this is very annoying and for sure a reason to kick out people doing it, because when the broker slightly rig the price, the arbitrageur opens new trades in the opposite direction the broker would like.

Example: When a lot of people are long on a product, the market maker will lower a little the price, and ideally would like some people to sell (to offset all the people long, and with the price a little lower, it will increase the margin of the market maker between the 2). But people arbitraging will do the exact opposite and open more trades long as the price is a little lower than it should.

Now, about your case, I don't know. Forex brokers are here to take your money, one way or another (even if they do a perfectly good job, they are still here to earn a living like any company). They spend serious money on advertising to recruit new customers, and for most of them have introducing brokers fees they pay to other people to bring in new customers also. So again, doing what they did with you does not make any sense ! I would say, protecting you is not really their problem, unless it will cause THEM a problem (for example if you sue them after, or they get in trouble with regulators). The fact that you were using a high margin, not demoing, using/not using indicators, your experience or income/net worth shouldn't be the cause of what happened to you here.

"Maybe they all have lists of people they don't want and they share with each other (doubt that)": I didn't think about that, but this could be the case ! It's especially bizarre that it happened to you 3 times in a row, so why not... Such lists exists in many businesses, and this would make some sense. Now, why would you end up on that list ? Or some brokers have "know your customer/due diligence" external service providers they use to check on customers, maybe you're flagged with these service providers, but again, question is: why ?

Just ideas: Maybe you sued some companies in the past or went to court for something ? Broker would prefer to not do business with you and not risk being sued for some bad practices they may have ? (Especially if you have a small account). Maybe it's related to your job ?

Thanks for the response. I have not ever sued anyone, so that's definitely not it. I was definitely not scalping or doing arbitrage. So, I don't know. These three companies do have very low opening deposits and from my understanding have many low balance holders. So me being a little fish shouldn't be a problem. As you can see I've racked me brain to figure it out and can't come to any conclusion. In some ways it's ok because, well, forex is super risky, and I've already lost money. But I truly believe if you follow strict psychological trading mentality and have a trading plan in place (in which you actually follow your rules), and do your best to follow fundamentals and technicals that money can be made consistently. Apparently I signed up for a MB/tradeking account months ago when I was picking between that company and fxcm. I still have the account in spite of the fact I never deposited, so compared to my other experiences, MB sounds pretty good so far. Gonna see how that goes.

Fxxxx, you're right that "being a little fish shouldn't be a problem", as their goal is to get you "hooked" Nothing says you won't deposit more, even far more after... You even have brokers which offer a no deposit bonus to get you started, so ... But each company is free to have their own policies. I am curious too about what is the trick here, and even if nothing forces them to, they should tell the people they turn down why they do it, just out of respect for them. Not letting you ask yourself why they reject you, like you're now asking yourself.

Maybe the US brokers think differently, and indeed don't want small account holders ? Maybe there is something here: They consider they have higher costs per customer (due to "regulatory" reasons ?) than out-of-US brokers ???

Good luck with your trading with MB then !