Why zero commision for MBT MT4?
Posted: 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):
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?
What does "swap" column mean (in MT4 "Account History" view)?
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):
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?
What does "swap" column mean (in MT4 "Account History" view)?