MB Trading Review
MB Trading Review 2015: Commissions, Fees, and Minimum Deposit
|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), $0.60 per contract (11-100 contracts), $0.35 per contract (101-249 contracts)|
|Mutual funds|| $9.95|
|Bonds Corporate/Listed|| 1 per bond ($10 minimum, $250 maximum charge)|
|Bond Treasuries|| free|
|Bonds Allocation|| $25|
|Pink Sheets & OTC BB|| $4.95 per trade + $0.01 per share, Maximum charge of 5% of principal value|
|Futures|| $0.85 per contract (1-250 contracts), $0.65 per contract (251-2000 contracts), $0.55 per contract (2001+ contracts)|
|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|
|Fees||MB Trading fees|
MB Trading has one of the worst new account registrations of all online brokers (this will definitely change after TradeKing takeover takes effect). 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 we 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. At TradeKing account application takes about 10 minutes.
MB Trading Review: Website/Trading Platform/Tools
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 maintenance or inactivity fees
MB Trading Review: Cons
- Surcharge of $0.005 per share for each share over the first 5,000, on extended hours trades, and orders
executed using the Reserve, Discretionary, or Pegged order types
- Stocks priced less than $1.00: $4.95 per trade + $0.01 per share, Maximum charge of 5% of principal value
- $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
In August of 2015 MB Trading announced that it is merging with TradeKing. With the addition of MB Trading’s renowned and award-winning trading
platform, TradeKing will offer a powerful, active trading experience for the most experienced traders, featuring the full spectrum of products,
including stocks and ETFs, options, bonds, forex and futures. To learn more about the combined company or to open a new account, go to
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 has penny stock surcharge, it also charges an additional $0.005 per share for extended hours trading and orders with over 5,000 shares. This could
be a deal-breaker for many traders, as most online brokerage firms don't charge these fees, 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.
Get $1,000 in Free Trade Commissions at TradeKing
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