TheRumpledOne wrote:MB Trading has MT4 in it's future.
I have 3 live feeds, one being MT4.
Can you expound on this? Do you know for certain they will offer MT4, such as being told by someone at MB, and could you speculate as to when?
Thanks.
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TheRumpledOne wrote:I trade with www.efxgroup.com
They are an ECN. THERE IS NO FIXED SPREAD IN FOREX. Tell them THE RUMPLED ONE sent you.
You can google and find out what I really think about "FIXED SPREAD BANDITS".
I'll leave it at that so I don't get banned.
How do I avoid the spread?
I explained this to someone yesterday in an IM.
With EFX you pay a commission rather than having a "FIXED SPREAD".
It's "apples and oranges" so don't try to compare. "THE MATRIX HAS YOU" and you need to "FREE YOUR MIND" to understand what I am about to explain.
Let's say the current bid/ask is 1.5010 x 1.5015
The current spread is 5 pips.
You want to SHORT.
You SHORT at 1.5010.
You set a TP at 1.5005.
Bid/Ask becomes 1.5005 x 1.5009 and the current spread is 4 pips.
At EFX, you will get filled if the bid is 1.5005 and someone TAKES your offer.
Bid/Ask is now 1.5004 x 1.5009 and YOU HAVE YOUR PROFIT.
Note: the ASK never reached 1.5005. THIS IS IMPORTANT!
If you entered this order at a FIXED SPREAD BANDIT, whoops I mean broker, your order is STILL OPEN!!
The bid/ask must become 1.5000 x 1.5005 and your order HITS the Ask.
DO YOU GET IT?
If not, then read this over and over and over again until the LIGHT BULB goes off!!
The day I found out about EFX is the day I opened an account there and stopped trading with FIXED SPREAD BROKERS.
The simplest thing to do is to load up a demo account at EFX Group and see it with your own eyes.
When you place your TP Bid offer at 1.5005, your bid is displayed on Level II.
The point is with EFX your offer gets hit.
With FIXED SPREAD BROKERS you have to wait to hit their offer.
Maybe this might help:
First:
1.5010 x 1.5015
and price drops...
1.5009 x 1.5014
1.5008 x 1.5013
1.5007 x 1.5013
1.5006 x 1.5012
1.5006 x 1.5011
1.5005 x 1.5011 You may get hit
1.5005 x 1.5010 You may get hit
1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT
AND LET'S CONTINUE
1.5003 x 1.5008
1.5002 x 1.5007
1.5001 x 1.5006
1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.
Does that make it clearer??
What about the commission cost?
The commission varies depending on the pair trading.
It is $.50 per 10k minilot on USDJPY. So if I gross 2 pips, I am making money.
From the EFX site:
Commission Rates
Fixed spreads are a way for FCMs to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have ?no commission?, that should be a red flag. So how are they getting paid? Its simple: they are making money with the built-in markup/markdown in the spread.
Our FCM, MB Trading Futures, has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.
Commissions are based on total dollar amount traded: $5 per $100,000 traded.
Remember, tell EFX that THE RUMPLED ONE sent you
theperfectsun wrote:This is what you have written:
With FIXED SPREAD BROKERS you have to wait to hit their offer.
Maybe this might help:
First:
1.5010 x 1.5015
and price drops...
1.5009 x 1.5014
1.5008 x 1.5013
1.5007 x 1.5013
1.5006 x 1.5012
1.5006 x 1.5011
1.5005 x 1.5011 You may get hit
1.5005 x 1.5010 You may get hit
1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT
AND LET'S CONTINUE
1.5003 x 1.5008
1.5002 x 1.5007
1.5001 x 1.5006
1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.
I don't understand one thing:
With let's say some other broker you have BID and ASK the same, the spread is the same:
1.5010 and 1.5015. You hit limit order on Mb trading at 1.5005 ok? I hit instant execution on my broker-fixed spread bandit.
We both get filed right away, so much I have learned when you make a limit sell under current BID price you get filled right in with MBtrading. (This might be good for news time).
So as you explained what happens. Price reaches 1.5005 and 1.5010. We both are covered, except you have to pay the commission, right?
We have TP at 1.5005. Than means when ask hits that line we take our TP.
I see the catch is here: with MB trading your TP gets executed when bid comes to 1.5005( ask is at 1.5009 as you said) so you take 1 pip profit?
Because on my broker the ask needs to come down to 1.5005 for me to take 5 pips. But I can close the order manually at ASK 1.5010(1.5009) and make 1 pip as well?
So where is the difference. You have made 1 pip - commission and I have made 0 or 1 pip, because my broker uses a fixed spread.
Please enlighten me, thanks!
theperfectsun wrote:I don't understand one thing:
With let's say some other broker you have BID and ASK the same, the spread is the same:
1.5010 and 1.5015. You hit limit order on Mb trading at 1.5005 ok? I hit instant execution on my broker-fixed spread bandit.
We both get filed right away, so much I have learned when you make a limit sell under current BID price you get filled right in with MBtrading. (This might be good for news time).
So as you explained what happens. Price reaches 1.5005 and 1.5010. We both are covered, except you have to pay the commission, right?
We have TP at 1.5005. Than means when ask hits that line we take our TP.
I see the catch is here: with MB trading your TP gets executed when bid comes to 1.5005( ask is at 1.5009 as you said) so you take 1 pip profit?
Because on my broker the ask needs to come down to 1.5005 for me to take 5 pips. But I can close the order manually at ASK 1.5010(1.5009) and make 1 pip as well?
So where is the difference. You have made 1 pip - commission and I have made 0 or 1 pip, because my broker uses a fixed spread.
Please enlighten me, thanks!