IB or MB Trading?

As you know I watch the threads about MB to assist if anyone needs help or correct any inaccurate information. MBT is a privately held company of which has no debt and has been cash for positive for many years. We simply do not share our financials because we are private. Penson, who we clear through, is where any customers funds are held. At Penson your account is insured up to 35 million. This consists of SIPC which covers 500k including 100k of cash and in addition Penson has purchased additional coverage not to exceed 35 million per account including a cash sub limit of 900k. In addition, MBT has been a privately held brokerage for almost a decade. Our financial stability is a matter of consistent regulatory review by the NASD and SEC both of which find us capable of maintaining the business we do to thousands of institutional and retail clients all over the world.

Regards,

Steve
 
Stav......

I would be happy to address any poor experience but I am unsure if possibly you might be confused with how we are setup. We do not have any servers in Florida so I am unsure WHAT EXACTLY HAPPENED. At MBT we train our reps to always interact at the highest professional level possible so I am surprised to hear that you had that kind of interaction. Our chat room is public to better serve our clients. There is no hiding behind one on one conversations unless the client is discussing specific account details. We have always performed in the public eye because we have always taken responsibility for our mistakes. Nonetheless we do make mistakes and as such the only way we can fix them is to know about them. Tell me exactly what happened and who the rep was so we can make sure no other client has an experience that would make them question the ability of MBT. This is my responsibility as an owner of MBT and I am right here to take it.

Regards,

Steve
 
Quote from libertad:

Anyone who thinks otherwise has some other reason behind their response....
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Worldcomm, Enron, Refco, Krispy Kreme .........

The above list of companies provide a small example of corporations which made their financials available to the general public, and ultimately, such disclosure provided little protection against fraudulent activity.

I in no way wish to imply IB practices fraudulent activity. I simply wish to point out the financial disclosure provides zero protection from corporate malfeasance.

One might conclude someone who places such a premium on financial disclosure, with so many examples of that disclosure providing zero protection for those investing their hard earned money, might have an alternative agenda behind their answer.

You correctly observe this as a "black or white" issue. However, the conclusions you reach, and the inferences you make, have little correlation with the reasons behind disclosure.

Google, Inc. didn't make their financials available until they made the decision to launch their IPO. Why? Because they simply were not required to do so. Your implications suggest you would have advised against buying the GOOG IPO because of the lack of previously available financial data.

Nothing sinister at all behind a corporation's desire to not provide publicly available financial data. Suggesting a negative correlation exists in such circumstances places a premium on information where no such premium exists.

Good trading to you all.

- Spydertrader
 
Quote from libertad:

Excellent Commentary


Look... this matter is very simple...and is about public disclosure...

What are the actual financials of the brokerage firm by which the public is invited to do business...?

You have one firm A who handily gives you this information...and you have firm B who will not provide you with this information...

This is a very clear question...and has a very clear answer

The fact that a firm does not offer to the public its financial report card is very telling indeed....
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Hint: There's a difference between a public company and a private company. Also, note that one of the co-owners of MBT has posted why they don't disclose financials. Now that's just another example of MBT being on top of things as far as "customer service" IMO.
 
Quote from MBT-Steve:

As you know I watch the threads about MB to assist if anyone needs help or correct any inaccurate information. MBT is a privately held company of which has no debt and has been cash for positive for many years. We simply do not share our financials because we are private. Penson, who we clear through, is where any customers funds are held. At Penson your account is insured up to 35 million. This consists of SIPC which covers 500k including 100k of cash and in addition Penson has purchased additional coverage not to exceed 35 million per account including a cash sub limit of 900k. In addition, MBT has been a privately held brokerage for almost a decade. Our financial stability is a matter of consistent regulatory review by the NASD and SEC both of which find us capable of maintaining the business we do to thousands of institutional and retail clients all over the world.

Regards,

Steve
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Good to hear that, but too little too late as far as i'm concerned.
The facts go back in 2003, July or August I believe but not sure. I dont recall the name of your rep. but he was sitting in Jay's chatroom, not yours, and he was simply unavailable when I was screaming for information. Your phones were busy during the length of this incident, ie most of that day.
In order to be fair with MB, I will add that they have fast executions and user friendly platfrom (back in 2003).

Stav
 
Excellent Responses............

The matter of this discussion is not whether one is public or private....

It is the fact that the public has a choice between knowing the financial state of a broker or not knowing the particular financials of the broker..

Most firms that are still around since the late 90´s are to be commended...and certainly deserve a round of applause...

However each brokerage has certain legal obligations as well as a clearing firm has its legal obligations...

IB has been a tough price leader...and there has been an incredible amount of broker fallout because of it...

Thus a prospective customer has a choice...to choose a firm whose financials are visible...or a firm whose financials are not visible...

This in no way implies that either firm is good or bad...It simply is a matter of financial visibility.....
 
Thank you all for the thoughtful responses.

I'm sure MB is doing fine financially. They've been around awhile iirc. In either case it's SIPC insured and held at Penson. if Penson goes under, that's insured as well. Penson releases financials, so that's what matters since assets are held there.

MBT Steve, want to sell me on MB vs IB?
 
Quote from bandit77:

Thank you all for the thoughtful responses.

I'm sure MB is doing fine financially. They've been around awhile iirc. In either case it's SIPC insured and held at Penson. if Penson goes under, that's insured as well. Penson releases financials, so that's what matters since assets are held there.

MBT Steve, want to sell me on MB vs IB?
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The fact that he took the time to post speaks volumes. IMO, Frank

BTW, Bandit ... don't sweat your decision ... sweat the trades LOL
 
Quote from libertad:

Excellent Responses..............
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I'm here all week. Try the veal.

Quote from libertad:

The matter of this discussion is not whether one is public or private....
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Except it is the fundamental reason behind why a difference in disclosure between IB and MBT exists. Private companies simple are not required to disclose their information. Public companies do not have such a luxury. In fact, evidence suggests that few companies would disclose their financial data without this requirement. If one places a premium on financial information, then one certainly should know the reasons behind its availability or lack there of.

Quote from libertad:

It is the fact that the public has a choice between knowing the financial state of a broker or not knowing the particular financial information of the broker..
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The trader has a choice between knowing the information provided or not knowing information not provided. The trader does not know whether the information provided is accurate, timely or fraudulent.

Quote from libertad:

Most firms that are still around since the late 90´s are to be commended...and certainly deserve a round of applause...
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They also deserve to have individuals posting about their operations do so without casting aspersions as to their continued viability.

Quote from libertad:

However each brokerage has certain legal obligations as well as a clearing firm has its legal obligations...
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Certainly, you do not mean to suggest that either MBT or Pension Financial has failed to meet their obligations?

Quote from libertad:

IB has been a tough price leader...and there has been an incredible amount of broker fallout because of it...
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Including fallout experienced by IB as documented among the many posts on this web site.

Quote from libertad:

Thus a prospective customer has a choice...to choose a firm whose financials are visible...or a firm whose financials are not visible...
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You suggest deemphasizing all other determining factors for choosing a broker. Financial Visibility doesn't even rise to the level of effective tie-breaker, because in this case, it is akin to comparing apples to oranges.

Quote from libertad:

This in no way implies that either firm is good or bad...It simply is a matter of financial visibility.....
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Scottrade has offices throughout the United States. Actual brick and mortar buildings a trader can visit in an effort to resolve any problem. Does such actual Visibility make them a superior company? If a trader ranks visibility at the top of their priority list, then for that trader, they can choose between many brick and mortar buildings or few (or none). Clearly better means for resolving a 'best fit' scenario exist.

By implication, you suggest 'financial visibility' as your determining factor for choosing a broker. Yet, sufficient safeguards already exist (SIPC, NASD audits, etc.) which makes such a determining factor moot. Moreover, execution speed, customer service quality, platform complications and price (when combined to create an overall impression) offer a better indication toward whether a trader finds a brokerage firm best suited to their needs.

Again, traders can arrive at their own conclusions as to which broker best meets their needs and trading style without individuals posting innuendo or aspersion.

Good Trading all.

- Spydertrader
 
Quote from Spydertrader:


Including fallout experienced by IB as documented among the many posts on this web site.
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What fallout?
 
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