MB Trading announces Pay for Limits in Forex

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MBT-Steve

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MB Trading Futures Announces Payment for Limit Orders01.25.2011– (El Segundo, CA) – January 25, 2011 – Manhattan Beach Trading Financial Services, Inc. (“MBTFS”) and MB Trading Futures, Inc. (“MBTF”) (collectively “MB Trading”), which is a technology-driven, low-commission brokerage specializing in order routing in FOREX, Equities, Futures, and Options through various global exchanges and electronic networks, announced today that it will begin paying $1.95 per $100,000 in currency executed for Forex Limit orders posted that add liquidity to its FOREX ECN.

”This is a game changer for the retail FOREX industry and the next logical step for our FX ECN,” CEO Ross Ditlove states. ”Paying for Limit orders continues the drive to a fully transparent and efficient retail FOREX market place. It rewards our retail clients with lower trading costs and deeper liquidity.”

MB Trading consolidates quotes from major bank liquidity providers and customers, displaying them in the first fully transparent retail order book. Currently, customers pay $2.95 per $100,000 in currency executed on the MB Trading system. This significant change gives traders further incentive to post their Limit entries and exits on the FX ECN for all other retail participants to see.

“We continue to design our technologies to align our interests with those of our customers,” said David Lipsett, Executive Vice President of MB Trading. “Most FX brokers are not displaying client orders. This continues to put money in the pockets of those brokers as they hold Limit orders for themselves, thus maintaining larger minimum spreads to the detriment of their own clients.”

MB Trading will credit $1.95 per $100,000 traded immediately in the customer account upon execution of a posted Limit order. This applies to both MBT® MetaTrader 4 and MBT® Desktop accounts.

This new commission plan launches to all clients at the FX market open on Sunday, January 30, 2011.

Contacts: All inquiries can be directed to: David Lipsett - d.lipsett@mbtrading.com
 
Very interesting. Good on you guys for being the leaders on this. Hopefully you'll force your competitors to follow suit.

Just so I understand correctly, will a customer executing via a limit order get $1.95 and pay no other commission? Or will the $1.95 be deducted from the normal $2.95 commission meaning that executing with a limit order only costs $1.00?
 
Thanks Goldstandard......

The customer gets a credit of 1.95. It's independent of taking liquidity via MKT orders which would be a charge of 2.95

Regards,

Steve
 
Quote from MBT-Steve:

The customer gets a credit of 1.95. It's independent of taking liquidity via MKT orders which would be a charge of 2.95
More...

Still confused: just to clarify, if I am taking liquidity, it is -2.95 and if I provide liquidity, it is +1.95 - these are now just "routing fees" and MB no longer charges commissions on trades?

Even the website explanation is a little confusing.
 
Don't get too excited guys. They pay people for showing their hand. In forex market, no professional trader ever, I mean ever, puts a limit order in. I have worked in a dealing room before, not as a forex trader, but as a bond guy, but the forex traders were working next to me. If someone knows your next move you will be taken clean.

What limits order do is allowing a broker to hedge their risk better when Tier 1 market makers are not willing to do that, like during fast markets. This is legitimate and that is why they are paying.
 
Intradaybill,

You may have missed this one a little. Were you aware that MBT is an agency only firm and never takes a position of any sort?

Regards,

Steve
 
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