MB Trading Review



MB Trading are a small specialist broker that targets large scale experienced investors who are usually professional traders themselves.

They offer a number of specialist services particularly for black box traders, (traders who’ve developed automated trading strategies which are executed by computers). Obviously this is not for the faint hearted or inexperienced.

But what are they like as a mainstream broker? Read our review and find out.

 

Fees & Commissions

  • Stocks and ETFs: $4.95 for limit and market regular hours orders for up to 10,000 shares
  • Or $0.0075 per share with a $4.95 minimum per trade (proprietary order routing through MBTX system)
  • Executions on foreign stock exchange: $4.95 + 0.01 per share
  • Options: $0.95 per contract and no minimum ticket charge
  • Mutual funds: $12.95 flat rate for no-load funds
  • Bonds: $12.95 flat rate
  • Futures: $0.95 per contract
  • Minimum to open account: $1,000 for cash account, $2,000 for margin, $400 for a Forex, $500 for IRA

 

Website & Sign-up

MB Trading have a reasonable website, it’s easy to navigate around and find what you’re looking for. It looks a little disjointed but that’s a purely aesthetic thing and in no way detracts from its ease of use.

Signing up for an account couldn’t be simpler; they offer a single account which enables you to trade all markets including Forex. Completing the forms was a painless process which I completed within 10 minutes.

Once you’ve opened an account you simply choose the trading platform that most suits the types of markets you trade. MB Trading also offer integration with a number of third party tools so its easy to tailor the platform exactly the way you like it, but more on that in the next section.

 

Trading Platform & Tools

MB Trading offer a number of different platforms including web based and downloadable, it’s easy to select one that is most suitable for your trading style and experience.

I chose the original downloadable platform MBT Desktop; this is professional style platform with a number of professional grade tools available like MBTX one-button order routing for equities, futures, and options, Server-sided trailing stops, TTOs, and much more.

 

 

It’s a pretty robust platform that proved to be 100% reliable during my one month test. It’s both fast and efficient but it’s not particularly easy to use, fortunately it comes with a thorough manual which I urge you to read before trying to get to grips with it.

One great thing about the MB Trading platform is the ability to plug into a number of third party tool sets and data providers; they offer integration with over 30 leading providers of data, charts, analytic and resource providers.

This enables you to tailor the software exactly how you like it and integrate your favorite tools no matter what markets you trade or what type of strategy you operate. This functionality is useful for both intermediate and serious day traders and makes for a very accomplished professional style trading platform.

 

Pros

  • Good commissions on market and limit orders (regular hours only and below 10,000 shares)
  • Excellent trading tools
  • Great customer service
  • No ECN and exchange fees
  • No maintenance, inactivity or hidden fees

Cons

  • Surcharge of $0.005 per share for extended hours and orders executed using the Reserve, Discretionary, or Pegged order types
  • $30 annual fee for IRAs
  • High margin rates
  • $0.01 per share fee to exercise options contracts

 

Summary

MB Trading is a good broker no doubt about it, but they’re not suitable for everyone. If you’re a serous day trader, scalper or Forex trader then MB Trading could be perfect for you. They offer extremely competitive rates and a platform that can be tailored exactly the way you like it.

Add to that level 2 data access and a number of other tools including hosted VPS servers, perfect for any black box traders out there that need a hosted VPS near to the MB Trading servers to speed up execution times. As far as I’m aware they’re the only broker that offers this service.

But if you’re more of a mainstream trader, in that you use a broker to manage your IRA or you’re a part time trader MB Trading are not the right broker for you.

There are brokers out there that offer higher levels of support to intermediate traders. MB Trading pretty much assume their traders know the ropes and don’t offer much in the way of training or support.

For this reason they’re not a suitable broker for beginners either, there is no trading community to speak of and what little education there is set way above that of a beginner. If you’re a beginner you’d be much better off joining a broker like Zecco or TradeKing who tailor their service much more for rookies.




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