Hi Guys, I’m new to forex trading and is thinking of starting an account with MB Trading. I understand that they have 2 plan for offer, Free EXN and Pay for Limits. I did some research and felt that Pay for Limits should be cheaper to trade in the long run, but i might have miss out something that experience trader like you can advise me.
Here is the breakdown of my findings, do take a look and let me know if there is any insight that i might have miss out
- 1 round trade, in & out
- Spread for [B]Free EXN 1.2[/B]
- Spread for [B]Pay for Limit 0.9 [/B]+ $0.50 credits for 100,000 units trade for limit order OR cost of $2.50/100k for market order
- 10 Contract (lot): 100,000 units for EUR/USD @ $1.3175
- 1 pi price = $131,750 x 0.0001 = $13.175
- note that the spread between the 2 plan will varies across the day but will have a average of 0.3pi different.
a) Trade cost for Free EXN
2 Market Order x 1.2 x $13.175 = $31.62
b) Trade cost for Pay for Limit (2 Limit Order)
2 Limit Order x 0.9 x $13.175 - (2 Limit order x $0.50) =
$23.715 - $1 = $22.715
c) Trade cost for Pay for Limit (2 Market Order)
2 Market Order x 0.9 x $13.175 + (2 Market order x $2.50) =
$23.715 + $5 = $28.715
d) Trade cost for Pay for Limit (1 Market Order, 1 Limit Order)
2 Market Order x 0.9 x $13.175 + (1 Market order x $2.50) - (1 Limit order x $0.50) =
$23.715 + $2 = $25.715
From the breakdown above it seem that for Pay for limits plan, there is no way it can get more expensive then the Free EXN plan?
Thanks