Why zero commision for MBT MT4?

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noone22
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Why zero commision for MBT MT4?

Postby noone22 » Tue Mar 17, 2009 1:03 pm

I've just signed up with MB Trading (further I'll call it MBT for simplicity)
and set up demo MetaTrader4 for their platform. Start playing around.

First impression: great! spreads - as low as 0.5 pip for EURUSD, low commision,
no 5 pips limitation (from current price) on limit orders (as my current Forex broker does).

New thing for me - is commision. Tried to figure out, what is it.
For example, for this trade:
sell EURUSD
entry = 1.29950
take profit = 1.29888
time: 17:03:44
profit: 6.2 pips

(see picture 1 below):

Image

according to MBT web-site commision must calculated as follows:

EUR/USD - Non-US dollar based currency
Use EUR/USD's purchase price:
MBT Commissions formula:
Deal Size x Deal Rate x 0.00005
10,000 currency (1 lot) * 1.30055 * $0.00005 = $0.6502 ~~ $0.65

Which match actual commision for this trade in the amount of $0.65 exactly.
Taking low spread (around 0.6 pips during this trade) into account,
I've easily made 6.2 pips profit minus miserable $0.65 commision,
totaling $6.30 profit. I cannot find out, why (exactly) profit is $6.30

According to my calculations, I should made $6.20 (for 6.2 pips) minus $0.65 commision,
totaling $5.55.

What I'm missing here?

Another mistery: some trades don't attract commisions at all (at least that's how MetaTarder
is showing them). For example, commision is zero for losing trade:
buy EURUSD
entry = 1.29925
stop-loss = 1.29881
time: 17:02:04
loss: 4.4 pips

Why commision equals to zero?
I expect it to be charged irregadless of trade result.

Two of the trades below: one winner, one - loser are also with commission, equal 0.
Why?

Image

What does "swap" column mean (in MT4 "Account History" view)?

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Postby noone22 » Mon Mar 23, 2009 12:16 pm

It seems, that nobody (apart from newbies) is reading this "Beginners Forum".

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Postby eudamonia » Mon Mar 23, 2009 3:35 pm

noone,

Also possible that no one knows the answer for sure :P

My guess though, is that MT4 is designed for use with Forex bucket shops. It probably isn't calculating commissions since it isn't structured that way (for Forex). Yes I know it has a comms column, but maybe it only works for Futures?

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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Postby noone22 » Mon Mar 23, 2009 11:04 pm

I see.

So demo MetaTrader from MBT is no more than a toy:

- it's not replicating real Forex data feed from MBT
- it's not filling exactly, as real MBT Navigator does
- results of the trades are not shown under MBT account
- it's not even calculating commisions properly

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Postby PTG » Tue Mar 24, 2009 12:07 am

noone22 wrote:I see.

So demo MetaTrader from MBT is no more than a toy:

- it's not replicating real Forex data feed from MBT
- it's not filling exactly, as real MBT Navigator does
- results of the trades are not shown under MBT account
- it's not even calculating commisions properly


I would ask them, they should know of all people. I find them to be very responsive and helpful. Good luck !

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Postby noone22 » Tue Mar 24, 2009 5:47 am

PTG wrote:I would ask them


Yes, I've asked them.

Today I saw on MBT demo MT4 platform a disaster 13,500 pips down-trend
on GBPJPY. Don't know, what it is (it was OK on other MT4 platforms
and Tradestation), but my first impression was similar to staying on railway with heavy road-train approaching. I don't want to be under such train in the opposite direction trade and without stop-loss...

Image

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Postby PTG » Tue Mar 24, 2009 10:56 am

I would ask them that too.

I did a few days ago by email. I had answers very quicky, They told me that during the beta-testing phase that they are in now, these glitches may appear due to server testing and updating. It will be over once the system goes live; they didn't want to say when only that things progress nicely.

Do ask them yourself though.

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Postby noone22 » Wed Mar 25, 2009 4:26 am

noone22 wrote:Yes, I've asked them


It's all sorted out now.
In fact, commissions did appear for each and every past trade I've done
so far and they are charged per each side -
so, it's around $1.40 per $10K trade.
The problem is, that they're appearing 1-2 days later -
but not immedeately after the trade done.

But I already know, that it is bugy MBT MT4 demo - so never mind
(I won't have much confidence to trade live via their MT4 after
such experience - at least for first half a year).

Exact response from MBT is following:

MBT wrote:
Let me answer your question about the swap column,
the swap column shows you the Interest rate that you would
be charged or credited (depending on if the number
is a positive number or a negative rate) if you hold the position
through rollover (switching to the next day,
overnight trade, 5:00pm EST).
I have include a link to our website
that explains swap in more detail.
http://www.mbtrading.com/forexRolloverPremRates.aspx

The commissions are charged on every execution,
so you will be charged on the Buy and on the sell.
If you are trading any USD (exp. USD/JPY or USD/CHF)
based currency pair the commission
is $.50 per mini lot. For EURO Based pairs the
calculation would be like this(see example below):
Price x Size x .00005 (base commission rate) = Commission
(this formula is good for all Non dollar based currency pairs)

EUR/USD: 1.3530 (price of the pair) x 10000 (size, 1 mini lot) x $.00005 (base commission rate) = $.68 per side.

http://www.mbtrading.com/commissions.aspx?page=Forex

The commission should be charged on EVERY execution,
if it for some reason did not show a charge for you on the
meta trader platform
(The links/screen shots you sent did not work)
then I would suggest contacting our MT4 support Reps



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Postby noone22 » Wed Mar 25, 2009 4:44 am

eudamonia wrote:noone,
Also possible that no one knows the answer for sure :P


Hi, Ed
Only just mentioned your games of word: noone - no one :lol:

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Postby eudamonia » Wed Mar 25, 2009 3:49 pm

noone,

That's pretty funny. Was totally unintentional, which makes it even funnier.

Edward
Eudaimonia (pron.: you-die-moan-e-a) (Greek: εὐδαιμονία) is a classical Greek word commonly translated as 'happiness'. The less subjective "human flourishing" is often preferred as a translation.

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