Is MBT really an ECN ? | Page 5 | Forex Factory

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Is MBT really an ECN ?

  • #81
  • Nov 20, 2010 2:21pm Nov 20, 2010 2:21pm
Quoting RealPips
I use them because I am happy with their SERVICE(yes, we are paying them for their services, they are not leeching off of us.) and will continue to do so until I feel my relationship with them is no longer positive for me!
Your comments are in line what my buddies who trade through MBT say. MBT is a reliable and a good service business.
  • #82
  • Nov 21, 2010 10:50am Nov 21, 2010 10:50am
Quoting Karl_Vosp
As far as Duka goes, they are partly ECN and partly non-ECN. In some cases they are a counterparty and sometimes they are not a counterparty to their clients trades. You can read it in Duka's agreement.
Really? Can you show us the exact statement saying that?

Here is what Dukascopy said:

Quoting Dukascopy

Hi Guys, sorry for the late reply

From the legal point of view, all the trades made by traders with
Dukascopy Bank have Dukascopy Bank as the only counterparty.
  • #83
  • Nov 21, 2010 10:57am Nov 21, 2010 10:57am
Quoting Marv
Really? Can you show us the exact statement saying that?
Right here: (google the below and you'll find direct link to dukascopy pdf)

15. Conflicts of Interests

The User understands that the business model of the SWFX Swiss Forex Marketplace consists in ensuring
best execution for the transactions of the Users and matching the transactions between any of its Users or
Counterparties, each trade being instantly hedged with a countertrade. In that respect, on the SWFX Swiss
Forex Marketplace, Dukascopy is counterparty of each trade and counter trade. In some circumstances,
Dukascopy may not hedge entirely or may not hedge at all certain trades. In such cases, Dukascopy may
have opposite positions towards Users.

That "May" means "will" by the way.
  • #84
  • Nov 21, 2010 11:22am Nov 21, 2010 11:22am
Thanks, but I'm aware of that one.

I was talking about their being your "counterparty".

Karl said that Duka is sometimes your counterparty sometimes not, which is not correct. Dukascopy is your counterparty at all times. As for the statement you provided, it's basically saying that they may hedge their exposure against certain trades sometimes.

This does NOT mean that they are going to single you out and trade against you (it doesn't work that way), but that they are free to hedge their exposure when there is an unbalance in their internal orderbook.

In such cases where your trade ends up within that "exposure" zone which they are required to hedge against, they are (technically speaking) "trading against you", which means that if you (and the other people whose positions are part of the "exposure" that is being hedged against) win, Dukascopy loses, and vice versa. This, in legal terms, represents a "conflict of interest".

This process actually ensures a higher chance of your order getting executed, the cost being a relatively small possibility of a financial "conflict of interest" with the broker at times, which is not a bad thing unless the broker illegally manipulates price to make you lose and make themselves win during such hedges.
  • #85
  • Nov 21, 2010 11:29am Nov 21, 2010 11:29am
Quoting Marv
Really? Can you show us the exact statement saying that?

Here is what Dukascopy said:
You still don't seem to get it. It is not very important what your broker says on an internet forum. It is important your broker writes in legal documents.
  • #86
  • Nov 21, 2010 11:36am Nov 21, 2010 11:36am
Quoting Karl_Vosp
You still don't seem to get it. It is not very important what your broker says on an internet forum. It is important your broker writes in legal documents.
You said Duka states that they are sometimes your counterparty and sometimes not. You were wrong. Deal with it.

Of course it's the legal documents that matter, and those have been perfectly explained. You don't seem to get THAT, only make unsubstantiated accusations like most newbies do.

I've said my bit. I'm outta here now.
  • #87
  • Nov 21, 2010 12:00pm Nov 21, 2010 12:00pm
Quoting Marv
You said Duka states that they are sometimes your counterparty and sometimes not.
Yes.

Quoting Marv
You were wrong.
Highly unlikely. I think chances are you are wrong since you did not read the agreement in full.

Quoting Marv
Deal with it.
You deal with it. MBT is a market maker. And you may be a fool who was taken for a ride.
  • #88
  • Nov 21, 2010 2:49pm Nov 21, 2010 2:49pm
Quoting Karl_Vosp
you deal with it. MBT is a market maker. And you may be a fool who was taken for a ride.
lol
  • #89
  • Nov 21, 2010 4:07pm Nov 21, 2010 4:07pm
Ick this thread has gotten messy.

For legal reasons any broker, ECN market maker etc has to act as the counter party.

Reason being, if they legally sign the contract of counterparty to whomever your order is filled with and that person fails to pay out. You can take legal action against the broker. Thus they make sure your transactions get settled by taking on the risk of their partners/providers. If they were to say "we do not act as counter party, so are not liable for any non settlement by contracted parties" then you'd be screaming as well.

So much whinging going on about something that people know nothing about.
  • #90
  • Nov 21, 2010 5:29pm Nov 21, 2010 5:29pm
Takisd,

What is it: it swims and its name is a duck. Is it:
a) a fish or
b) a duck?
  • #91
  • Nov 21, 2010 5:40pm Nov 21, 2010 5:40pm
Karl, you're confusing ECN (which MB is) with Direct Market Access (which MB is not).
  • #92
  • Nov 21, 2010 9:20pm Nov 21, 2010 9:20pm
If MBT is not, who got access to DMA
  • #93
  • Nov 21, 2010 9:25pm Nov 21, 2010 9:25pm
Quoting Karl_Vosp
Takisd,

What is it: it swims and its name is a duck. Is it:
a) a fish or
b) a duck?
Ok so remind me when you get direct access to always be a counter party to you and not pay up. That way, I make money if I win, and you lose money no matter what...
  • #94
  • Nov 22, 2010 3:49am Nov 22, 2010 3:49am
Quoting torroray
If MBT is not, who got access to DMA
Jamie posted this some months back.
Attached File(s)
File Type: pdf NDD Forex Brokerage Models.pdf   475 KB | 764 downloads
  • #95
  • Nov 22, 2010 6:54am Nov 22, 2010 6:54am
Quoting Takisd
Ok so remind me when you get direct access to always be a counter party to you and not pay up. That way, I make money if I win, and you lose money no matter what...
Takisd, please answer the below question.

What is it: it swims and its name is a duck. Is it:
a) a fish or
b) a duck?

This should be easy. After you answer this one there will be one more, forex related question.
  • #96
  • Nov 22, 2010 8:48am Nov 22, 2010 8:48am
Quoting Karl_Vosp
Takisd, please answer the below question.

What is it: it swims and its name is a duck. Is it:
a) a fish or
b) a duck?

This should be easy. After you answer this one there will be one more, forex related question.
  • #97
  • Mar 11, 2011 9:25am Mar 11, 2011 9:25am
Well, These are typical spreads.. GU regularly goes to .10 spread and even negative. Euro was -.50 spread a lot tonight.

What I know is that when I trade with MB Trading, using the Pegged and Limit order types, I get super tight spreads, fantastic execution and I get PAID $3.90 roundtrip! No commissions. In what way would DMA be better?
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2011-03-11 at 7.17.32 AM.png Size: 21 KB
  • #98
  • Mar 16, 2011 12:27pm Mar 16, 2011 12:27pm
Quoting jagui
Karl, you're confusing ECN (which MB is) with Direct Market Access (which MB is not).
you are absolutely right,
DMA is what we all should strive for,
I want to get filled in milliseconds and trade directly with the banks
integral would be nice!
so far no luck finding a broker like that
a simular would be hotspot, but just for insitutional clients
do you have any sugestions?
Bulls are stupid Animals!especially when Im short!
  • #99
  • Mar 16, 2011 12:51pm Mar 16, 2011 12:51pm
Quoting RealPips
What I know is that when I trade with MB Trading, using the Pegged and Limit order types, I get super tight spreads, fantastic execution and I get PAID $3.90 roundtrip! No commissions.
It's pretty nice isn't it? Non-DMA brökers should at least be offering this kinda stuff. http://www.forexfactory.com/images/icons/icon6.gif
  • #100
  • Mar 17, 2011 12:38pm Mar 17, 2011 12:38pm
YES
Make your losses in demo. Earn your profits live.
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