MB Trading FX

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Transaction Costs
a.Brokers make their money by charging you a routing fee or by padding the spread, plain and simple. They may claim they have commission-free trading, but they pad their spreads excessively or their “low commissions” may not really be that low. Make sure you are doing your homework here. Compare transaction costs, then compare them some more.
b.MB Trading FX proudly has some of the lowest trading costs in the world, as noted by Stockbrokers.com in 2011. Our proprietary MBTFX routing system connects you directly to liquidity providers for the best possible prices. The EXN (Electronic Xrossing Network) Pay for Limits program has some of the lowest routing fees and pays you for adding liquidity to our system. Our Free EXN model charges no commissions and still offers some of the tightest spreads you can find. Compare HERE.

Execution
a.Some brokers are deal desks that make money in the spread. Others route your orders to a single bank preventing best execution. Yet others claim to let customers trade with each other, but don’t allow you to post your Limits for others to see. How does one know what’s real?
b.At MBTFX, we combine liquidity from multiple banks with our Electronic Xrossing Network (EXN) to give you multiple liquidity destinations. Do other brokers offer an Electronic Xrossing Network? Use “The MBTFX Test” to decide. Pick any currency pair on any other broker’s system. (For simplicity, use a pair with a three or more pip spread.) Let’s say the Bid is 100 and the Ask is 103. Now enter an order to buy at 101. If you and everyone else on that system does not immediately see your new Bid at 101, thus now making the market 101 by 103, then you are not on a truly transparent Electronic Xrossing Network. It’s that simple. And with minimum spreads of only 1/10th of a pip on all pairs, customer orders help you to reduce trading costs. Click HERE to see how it works.

Trading Tools
a.Some brokers lock you into one trading platform with only a few order types. Some don’t allow you to connect with the services and tools you want or need to be a better trader.
b.MB Trading FX doesn’t handcuff your trading by limiting your trading tools With MBTFX, you bypass the middleman and trade directly with the biggest market participants for lower costs and quicker execution. MB Trading FX offers award winning platforms—including MetaTrader 4—with up to 28 order types, robust charting, and fast non-deal desk execution. MB Trading FX has customized MetaTrader 4 to remove the deal desk and eliminated the Virtual Dealer Plug-in. Trade your way on any of our 7 platforms, including MBT Web and MBT Mobile. We also allow third party developers to connect to us via our API and SDK. So if you outgrow our powerful charting and analytics tools, or want to add and automated tool, you are free to do so with any of our partners. We connect with the most popular products on the market. And for advanced traders with programming knowledge, we even allow you to create custom Expert Advisors.

Security
a.Can you point to Cyprus on a map? Do you know who is regulating traders in that third world country promising unbelievable leverage? Before you place your hard earned money with a broker, you should make sure it’s going to, well-regulated market, not a country where trading is still a bit of a Wild West show.
b.MB Trading FX is dedicated to protecting your information. We are regulated by the NFA and CFTC in the USA, organizations known for stringent rules and regulations, which most other countries use as their guide. We take additional measures, such as Redundant and Automated Manually Observed Risk Management systems, to ensure you can trade with trust and security.

Price Improvements
a.Other brokers may tout their price improvements as a reason to give them a try. But look closer and you may see that their “price improvement” is just the market fluctuating naturally. That is not a price improvement.
b.A price improvement at MB Trading FX means that the market was 10 when you wanted to buy and you got filled at 9. That is a true price improvement.

Fill Speed
a.Some FX brokers make some pretty outrageous claims about fill speed—beware of what they say! If they talk about fill speed in seconds, run away.
b.With MBTFX, we route your orders to our liquidity providers or other customers in milliseconds, not seconds. Our cancel speed (sometimes more important than fill speed) is even faster than our order processing speed, something every trader can appreciate.

Spreads
a.Don’t be fooled by claims from brokers implying spreads can be smaller than the minimum price difference (sometimes down to zero!). They are falsehoods. Make sure you are reading the fine print.
b.At MB Trading FX, our minimum spread truly is 1/10 of a pip and we continue to tighten our average spreads by posting your limit orders for all to see. An order resting on our limit book displays is not held by us—compare that to other brokers. They may allow you to enter prices away from the market but the true test is whether or not they display them to other clients. We do, that’s why our spreads continue to get tighter as we grow. We want you trading cost to go down.

Trust
a.Trust in your broker is crucial. Whether it is transparent trading, non-deal desk execution, or ethical conduct, your broker should have your back. Sadly, this isn’t always the case. Research the NFA and CFTC records. Some brokers have racked up millions in fines…and are still operating.
b.MB Trading FX is a privately owned company that is focused on you, the trader, and not our stock price. We have worked tirelessly to develop our proprietary EXN system to give you the cost effective and transparent way to trade FOREX. Check the NFA/CFTC for MB Trading FX— under regulatory actions you’ll see a big, fat ZERO.

http://www.mbtrading.com

Forex Market Trading

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The Forex Market

Forex is an interbank foreign exchange market, the trading volume of which exceeds all other financial markets. Forex trading is available 24 hours a day via global information networks. Not only banks, but also private investors can buy and sell currencies. Their primary purpose is the same as in the stock market: buy at low price and sell at high one.

The most popular currencies in the Forex market are the following: USD (U.S. dollar), JPY (Japanese yen), GBP (British pound), EUR (Euro), CHF (Swiss franc), CAD (Canadian dollar) and AUD (Australian dollar). In turn, the most popular currency pairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF.

Traders can access the foreign exchange market with the help of Forex Brokers. All that is needed is a computer with the Internet access and the MetaTrader 5 trading platform, which can be download absolutely free. The platform enables Internet trading, i.e. buying and selling currencies in the Forex market. Based on the fundamental analysis and technical analysis, the trader tries to predict the movement of the currency market: in other words, buys the currency cheaper and sells, when its price goes up. The resulting difference between the buy and sell prices is the profit of the trader.

Like with the stock market, MetaTrader 5 provides tools for mobile Forex trading. With the MetaTrader 5 mobile trading platform anyone can enjoy a full-featured and extremely comfortable trading in the foreign exchange market at any time and from anywhere in the world. It can be download for free (MetaTrader 5 iPhone & MetaTrader 5 Android). Automated trading using Expert Advisors is also available on the Forex. A robot created in MetaTrader 5 is able to analyze prices of financial instruments and trade currencies, carrying a large amount of calculations. In addition to developing robots, MetaTrader 5 includes options for writing technical indicators and other programs to run on the currency market.

Currency Trading Glossary

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Forex trading glossary:

ADX (Average Directional Index) — standard technical indicator that measures the strength of a trend.

Ask (Offer) — price of the offer, the price you buy for.

Aussie — a Forex slang name for the Australian dollar.

Bank Rate — the percentage rate at which central bank of a country lends money to the country’s commercial banks.

Bid — price of the demand, the price you sell for.

Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.

Cable — a Forex traders slang word GBP/USD currency pair.

Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.

CCI (Commodity Channel Index) — a cyclical technical indicator that is often used to detect overbought/oversold states of the market.

CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.

Commission — broker commissions for operation handling.

CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.

EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.

ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don’t discourage scalping, don’t trade against the client, don’t charge spread (low spread is defined by current market prices) but charge commissions for every order.

ECB (European Central Bank) — the main regulatory body of the European Union financial system.

Elliott Waves — a set of principles for chart analysis based on 5-wave and 3-wave patterns.

Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.

Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.

Flat (Square) — neutral state when all your positions are closed.

Fundamental Analysis — the analysis based only on news, economic indicators and global events.

Gap — a difference between the previous period’s close price and the next period’s open price. In Forex usually only occurs during weekends — between the Friday’s close and the Monday’s open price.

GDP (Gross Domestic Product) — is a measure of the national income and output for the country’s economy; it’s one of the most important Forex indicators.

GTC (Good Till Canceled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.

Hedging — maintaining a market position which secures the existing open positions in the opposite direction.

Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.

Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.

Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.

Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.

Liquidity — the measure of markets which describes relationship between the trading volume and the price change.

Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.

Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.

Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).

Margin — money, the investor needs to  keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.

Margin Account — account which is used to hold investor’s deposited money for FOREX trading.

Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.

Market Order — order to buy or sell a lot for a current market price.

Market Price — the current price for which the currency is traded for on the market.

Momentum — the measure of the currency’s ability to move in the given direction.

Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.

Offer (Ask) — price of the offer, the price you buy for.

Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.

Order — order for a broker to buy or sell the currency with a certain rate.

Percentage Allocation Management Module (PAMM) — a broker-side system that allows investor to invest with traders, and allows traders to manage investors’ funds using the broker’s platform.

Pivot Point — the primary support/resistance point calculated basing on the previous trend’s High, Low and Close prices.

Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).

Profit (Gain) — positive amount of money gained for closing the position.

Principal Value — the initial amount of money of the invested.

Realized Profit/Loss — gain/loss for already closed positions.

Resistance — price level for which the intensive selling can lead to price increasing (up-trend).

RSI (Relative Strength Index) — indicator that measures of the power of direction price movement by comparing the bullish and bearish portions of the trend.

Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.

Settled (Closed) Position — closed positions for which all needed transactions has been made.

SL — see Stop-Loss Order.

Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — “fast” market, low liquidity and low broker’s ability to execute orders.

Spread — difference between ask and bid prices for a currency pair.

Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.

Stop-Limit Order — an order to sell or buy a lot for a certain price or worse.

Stop-Loss Order — an order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.

STP (Straight Through Processing) — an order processing that doesn’t require any manual intervention and is fully automatic. In fact, 99.9% of all on-line Forex brokers support order handling with STP.

Support — price level for which intensive buying can lead to the price decreasing (down-trend).

Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.

Take-Profit Order — an order to sell or buy a lot when the market reaches certain price. It is used to fixate your profit. Usually is a combination of stop-order and limit-order.

Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.

TP — see Take-Profit Order.

Trend — direction of market which has been established with influence of different factors.

Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.

Useable Margin — amount of money in the account that can be used for trading.

Used Margin — amount of money in the account already used to hold open positions open.

Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.

VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user’s PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.