MBTrading review 2014

3.5-star brokerage firm rating

MB Trading Review


Excellent trading platform. Expensive to trade during extended hours.



MB Trading Review 2014: Commissions, Fees, and Minimum Deposit


InvestmentsCommissions
Stocks and ETFs $4.95
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 (1-10 contracts)
Mutual funds $15 Transaction Fee + $25 Commission
Bonds Corporate/Treasuries $25
Bonds Listed $2 per bond ($25 minimum)
Bonds Allocation $25
Futures $0.45 - $0.85 per contract
Pink Sheets & OTC BB $8.95 per trade, no limit to number of shares
Forex $2.50 per 100,000 traded

Investments stocks, options, mutual funds, Forex, futures, bonds, ETFs
MB Trading minimum deposit to open account $1,000 for cash account, $2,000 for margin, $400 for a Forex, $500 for IRA
FeesMB Trading fees


MB Trading New Account Setup

MB Trading has one of the worst new account registrations of all online brokers. At first, you are presented with short form where you indicate whether you are opening a forex or equities account and choose a password that has to contain special characters. Then you have to verify your email address. Click "Open new equity account" on the confusing screen that appears after you click on the link they email to you. You will be presented with lots of long forms, with lots of unnecessary questions, duplicate questions, and privacy-intrusive questions. (We don’t think it's MB Trading's business what other brokerage accounts you have and how much money is in them.)

Half an hour later you'll be done with the forms, after which you will have to wait for up to 48 hours for your account to get approved. Meanwhile, MB Trading will check your identity (but not your credit score) with Equifax. Next day we got an email asking us to verify our phone number by calling MB Trading, and since there was a discrepancy with our address to mail, fax, or email them a utility bill. After that was done, the next day we got another email asking us to verify our income. No other brokerage firm asked us for that, and it's none of their business anyway. Yet another day after that, we got yet another email asking us to describe what we do at our job.

We did get approved eventually. To setup ACH transfers with your bank, you have to mail MB Trading an authorization form along with a voided check. This delays the funding of the account for another week or so. The majority of brokerage houses don't ask for that, either.

Just to give you something to compare the process described above with: 15 minutes after we began opening our Scottrade account, we were able to start trading.


MB Trading Review: Website/Trading Platform/Tools


MB Trading review
MB Trading review

MB Trading's trading software, called MBT Navigator, is a stand-alone (non-browser based) application - clients have to download and install it. Because it's not browser-based, it offers many advanced features usually found only in a professional trading software. Barron's has consistently ranked the firm near the top for trading technology, though not as high as Thinkorswim (Thinkorswim Platform Review).

MB Trading provides some of the best charting among online brokers. Their intelligent order-routing is the standard for "smart" order routes, and it is available for CME, NYMEX, CBOT and COMEX.


MB Trading Review: Pros


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


MB Trading Review: 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
  • Very long and privacy-intrusive new account opening process


MB Trading Review Summary


MB Trading is targeting professional, experienced, active traders with low commissions and the number of powerful, versatile trading platforms. There is a very steep learning curve to master the software and, together with few educational materials, it makes the firm not an ideal choice for a brokerage for beginner investors.

Because of its $30 annual IRA fee, we can't recommend MB Trading for an IRA account. There are a lot of other online brokers that offer fee-free retirement accounts.

MB Trading doesn't have penny stock surcharges, but it does charge an additional $0.005 per share for extended hours trading. This could be a deal-breaker for many people, as most online brokerage firms don't charge this fee, and you sometimes need to execute an order before market opens or after it closes.

MB Trading offers MBT LightWave Trading Platform™, which is a comprehensive trading software package that allows users to view, analyze and execute trades in the same program. It manages the user's FOREX, stock, futures, and options trades from one central location. It also provides proprietary Pressure Charts that have been used by over 160,000 people in their trading, as well as Price Charts for more advanced trade analysis.

MB Trading is a good broker for frequent and experienced traders. For everybody else, especially beginners, occasional traders, and buy-and-hold and mutual funds investors as well as for IRA holders we recommend researching companies in our Best Brokerages list.

MB Trading Promotion Code


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MB Trading Reviewed by Brokerage Review on . Rating: 4


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