Is MBT really an ECN ?
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Thread: Is MBT really an ECN ?

  1. #1
    Is mbt actually an ECN? If so then why the GBPUSD spread is at 1.9pips most of times??? That is unrealistic.

    That means MBT take profit from commission and spread!!!

    I check with FXPRO, it is market manufacturer, and calculating between them MBT is much more expensive! And mbt commission is 2.95 percent == 5.9 open and shut of base currency, not every dollar, therefore if we exchange GBPUSD when it's at 1.5000 then the commission is all about USD $9!!! That I think is too pricey considering the spread is not greater than a Market Maker such as FXPRO that dont have any slippage on stop loss unlike ECN.

    Please correct if wrong

  2. #2
    What a joke.

    If You Would like a REAL ECN that is MT4, check out FX OPEN.

  3. #3
    I started a different thread but this answers one of my questions. Anyone have any problems with Brokers?



    Quote Originally Posted by ;
    The only thing that brings me to MBT is it support Ninjatrader which I love, but there is a big big problem linking NT to MBT, when relationship dropped, we have to Restart Ninjatrader which could take a moment to load all the stuffs, really ANNOYING, imagine we have positions to handle and we have to wait a moment to see it back on line.

  4. #4
    Justin,



    How do you explain why the spreads are so secure?

    I tried out IB,Currenex, even AT from FXCM and those spreads vary a lot more gt; banks putting bids/offers and pulling them.

    For example the EUR/USD spread is about 0.9 pips the Majority of the time, when I watch the spread IB, it varies constantly between 0.2 and 0.8 pips

  5. #5
    Quote Originally Posted by ;
    They are not a real ECN....at not in the sense that most people think an ECN means they're trading on the actual market rather than contrary to their broker.

    MB TRADING FUTURES (MBTF) AS COUNTERPARTY
    THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. MBTF IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. THE PRICES MBTF OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.
    Flotsam,

    Sorry buddy but what you're saying is totally inaccurate and has been covered several times on our thread. If you utilize our platform and place Limit orders, you can quickly see that what you're saying isn't correct. Anything you send is submitted immediately, it is not held by us.

    Where the confusion comes in (and the main reason behind the terminology in the account agreement) is that you don't have a settlement agreement (and large deposit) together with the liquidity suppliers in our system. To put it differently, in the stock market, you are able to start an account with your broker (let us say us). You have an account. You are watching AAPL trade. You want to buy. There are numerous exchanges and market makers that produce the price, which transfers. You press the button to buy 1000 shares in the market. Our system looks and says,”Oh, XYZ firm is the cheapest offer price right now” and routes your order . They sell the inventory to”you.” You receive the stock at that price in your account from an accounting perspective immediately. However, what you do not think about is, you didn't buy from XYZ. You aren't a registered broker/dealer. The actual transaction happened for your benefit between them and us, that are registered traders. And over the following three days, we repay that trade by sending the money and getting the inventory behind the scenes. However, the truth is that if you watched the price and struck a destination, the actual inner workings of the transaction is that MB Trading purchased 1000 shares of AAPL out of XYZ, and we've got a clearing arrangement together through our clearing companies depending on the simple fact that we're both accredited BDs.

    From the FOREX world, we've got many liquidity suppliers that can place quotes in our system. If they set up a quote and then we route an order to them, they're expected to fill a specific sum in a minimum or the entire order. In order for us to do so, since FX doesn't function exactly the same manner as shares in terms of a centralized market, is that we must create the relationships with all these liquidity suppliers. That means putting a deposit together. That means setting up secure networks together. So just like in stocks, even whenever you opt to buy the GBPUSD, we route to the best price at the time. Whoever that strikes, you deserve to see your fill immediately, but again, make no mistake, YOU didn't only buy from ABC liquidity supplier since you don't have a clearing arrangement and agreement together that legally states we pay each other daily at settlement based on the amount of our trading action. We do that, since the FX broker. So while you find a price on the screen and you immediately know the price that you executed in into your account, the truth is that we have clearing relationships with these suppliers and also we have account relationships with you. So from a technical and legal perspective, we're the counter-party to your trade. But if we didn't provide you the true fill that you have from the road, then that wouldn't make sense, just like in the stock market. But none of the implies or suggests that we've got a dealing desk that chooses another side of your transaction and tries to profit from our client transactions.

    In fact, if we did that (had a bargain desk showing risk), we would have to hold a higher net funding under the latest NFA rules. They've verified that we're a legitimate STP/ECN broker, and thus we do not show routine risk of trading (beyond any errors).

    Thank you for your thoughts though. I know the need for due diligence. It's a common error that people assume when they see that speech in the account agreement.

  6. #6
    Asalada,

    I think commission is 2.95 per 1 standard lot (open and close), not to opening and shutting both ways, which will be approximately 0.3 pips. So if spread is 1.9 0.3 commission along with your total cost is 2.2 pips. Spreads generally appear to better and varies on MB Trading. What you ought to test is execution as even though you might conserve.2 pips on a few trades but can it always execute in the price you want. I have not tired MB trading live, but with bucket shops you can loose a lot more with requotes.

  7. #7
    $2.95 per $100k USD, each way.

  8. #8
    Quote Originally Posted by ;
    Is mbt really an ECN?
    They aren't a real ECN....at not in the sense that most people think an ECN means they're trading on the actual market rather than contrary to their broker.

    The frequent perception from retail traders is that by using an ECN they're trading on the actual interbank market, and their broker isn't taking another side of the trade. Nevertheless this really is an extract from the MB trading composed conditions:

    MB TRADING FUTURES (MBTF) AS COUNTERPARTY
    THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. MBTF IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. THE PRICES MBTF OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.

    When I spotted this I contacted one of their reps by email and asked them concerning this apparent contradiction in contrast to what they advertise on their website, and this was the email answer:

    As required by NFA law, MB Trading Futures (”MBTF”) must behave as counterparty to all client Currency Market transactions.


    So what does this mean for you? MB trading are carrying another side of your trade. If they can not pass that trade off in milliseconds to someone else, they'll lose if you win, or win if you lose, and therefore just the same as all other retail brokers, they have a vested interest in seeing you shed. So they're certainly not what they would like you to think they are.

  9. #9
    Quote Originally Posted by ;
    They aren't a true ECN....at not in the sense that most men and women believe an ECN means they're trading on the real market rather than against their broker.

    The most frequent perception from retail traders is that by using an ECN they're trading on the real interbank market, and their broker isn't taking the other side of the trade. However this is an extract from the MB trading written terms:

    MB TRADING FUTURES (MBTF) AS COUNTERPARTY
    THE FOREIGN CURRENCY TRADING You're ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. MBTF IS ACTING AS A COUNTERPARTY...
    Thanks for clearing this up, so my conclusion is MBT isn't real ECN and they still trade against trader.

  10. #10
    What would you guys consider FXPRO?

    I've some problems with requotes on FXPRO during fast market, but maybe not news time, along with also my lack of discipline makes me wait for superior price to escape, but then it occurred, it goes against me more and more. I know this is my dumb mistake however that requote things that happen many times does cause me to lose considerably more than it should.

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