After a brief foray into MB Trading's API, I've returned to using MetaTrader as the exclusive interfacing and execution technology. There are several reasons for this. MB Trading's API "consumes" a login, and clients (by default) get only 1 login. This means that their Desktop software cannot be used concurrently with an API client running. If the client logs in with their desktop, then the automated API client software is forcibly disconnected which is a big reliability concern. Would have been much better if the second login was booted, but it actually disconnects the login which is already connected ! So, in the default situation with a single login, the API client cannot safely be used, when there is the possibility (as there always would be) that the Desktop might log in concurrently. Only Forex traders are entitled to a free secondary login ID. This fact is not widely known, and that helps the situation slightly. All other account types, such as Futures and Equities accounts have a $25 fee monthly for the privilege of having a secondary login. If I were working in Futures or Equities, that would be a total show-stopper right off the bat. This means that an API client must replicate most of the key functionality of their Desktop offering, and that was simply too much work for very little gain. The performance gain was negligible, and the hassle factor was really a show-stopper for me. MB Trading should really automatically grant FREE additional login id's for API clients, and make sure that these will never interfere with a normal Desktop client login with their platform. Otherwise, API client development is just at risk, and can't be made reliable if there's any risk that a Desktop login might be attempted in the same account (as there usually is). So, I've returned to using MetaTrader Expert Advisors in order to do socket communication with my client software. Nearly anything can be programmed in an EA or in a couple of EA's and I am sorry that I even took the detour into MB Trading's API technology. Live and learn. I did pick up C# along the way, and that's a very useful thing to learn for a Java programmer, I guess, as it's so similar. So, although MB Trading's MetaTrader is a poor implementation, because of its slow fills, this is not something which is a major consideration, when weighted against the benefits of using MetaTrader. It must be said that MB Trading has good pricing, so I guess it's too much to expect fills much under 1 second execution time. Also, by using MetaTrader I am not locked into any broker's proprietary API and that's the real benefit. So, as they say, the Devil is always in the details. Brent.
My understanding is that Interactive Brokers is not really that strong in Forex. I could be wrong. I've done TWS (API) in the past with IB. The attraction of MB Trading in my specific situation for EUR/USD Forex is fourfold: (I'd love to find any other broker which meets these criteria... and which has fast execution (NON DEALING DESK). 1) Only $400 minimum funding, and 2) MetaTrader is supported !!!, and 3) They have an ECN/STP (non Dealing Desk) order entry execution model so interbank type pricing is good, even though performance is not that great... 4) Any Forex account can trade down from STANDARD, to MINI, to MICRO lots, and even sub-Micro lot sizes. (yes, I couldn't believe it either) ...and all from a $400 minimally funded account. So these make MB Trading very attractive for Forex, with some of the niggles noted in earlier posts. I don't believe there's any other Forex broker which has all of the 4 qualities noted above. Others, like ATC Brokers have a minimum of about $5k funding, I think, and you can't trade below mini-lot sizes. My trading style involves many many small entries, staggered at intervals, with profit-taking continuously. This means that scaling is a major factor, as well as risk management. Both entering and exiting the market is always "incremental". Brent
Oanda have gone live - beta with their MT4, not sure how small the orders can be if it goes below mini, but the data feed/trade execution is said to be faster than regular MT4s because Oanda are using their own feed, no $ minimum with Oanda you'll need to contact them to learn more, the MT4 Practice account as they call their demo: http://fxtrade.oanda.com/trade-forex/metatrader/demo-account-setup
Thanks for the info, I'll check it out. I forgot to mention of course the variable pricing spreads, which appear to average down near 0.5 pips plus or minus with MB. Pricing is very good indeed. I do a running spread average, and it's nearly always very good pricing. Commish is simply a flat rate, fully proportional $3.90 per side, which is $7.80 round trip. So if we scale this down to a micro lot, let's say your spread is 0.6 pips, and this is a $0.10 per pip micro lot size (1/100th of a standard lot size) so Cost of Trading is 0.6 pips or so PLUS commish of about .78 pips (market has to move .78 pips for commish), so you're making money ON AVERAGE maybe with market moves of 1.38 pips (ticks) more or less on each discrete entry... Now, if you can get better pricing getting in and out, then you can do slightly better than that, by using certain micro-strategies. But this is quite unlike Fixed Spread brokerages, especially those who build the commish into the spreads. So, I sound a little like an MB Trading Forex evangelist but I have to say that this is a great deal, especially considering the low funding requirements, and the wide ranges of lot sizes permitted for the smaller trader. I'm not a veteran of Forex but, from what I've seen, this is the way to go, and more brokerages are adopting an ECN/STP style of trading, where they don't trade against you with a Dealing Desk, and simply take a reasonable commission. If you compare the minimum exposure in the 6E futures contract market which is $12.50 per tick, then if you can get any exposure down to and including $0.10 per tick in the EUR/USD Forex market, then it's a no-brainer that this offers tremendous Risk Management possibilities. Incrementally scaling in with 10 mini-lots exposes you to $10 / tick and you can spread those entries to bring your cost basis or volume weighted average price in your favor, etc. Brent.
excepting the trading margin required to daytrade fx v 6E in North America at least is about $2,800 v $500, tho o/n it increases for the $125,000 contract to $4,320 an alternative are the mini and micro futures contracts but rt commissions work out to $1.05 and $1.99 per 12,500 lot, and you'd have to use NinjaTrader or similar their o/n margins are $62,500 / $2,160 and $12,500 / $243