MB Trading was a forex broker that offered trading services in various financial markets, including forex, stocks, futures, and options. However, the company has been out of business since 2015, and its clients were transferred to TradeKing Forex (Ally Invest). This article will explore the reasons that led to MB Trading’s demise and what happened to its clients.
MB Trading was founded in 1999 and was based in El Segundo, California. The company offered trading platforms that catered to both retail and institutional traders. The broker was known for its low pricing, advanced trading tools, and reputable customer service. In addition, MB Trading was regulated by the National Futures Association (NFA) and was a member of the Financial Industry Regulatory Authority (FINRA).
However, in 2015, MB Trading announced that it was exiting the retail forex market and would transfer its clients to TradeKing Forex. The move came as a surprise to many traders who had been using MB Trading’s platforms and services. The company cited increased competition, regulatory pressures, and changing market conditions as reasons for its decision to exit the forex market.
One of the key factors that led to MB Trading’s demise was the increasing competition in the forex market. The forex industry has become highly competitive over the years, with many new brokers entering the market. This has resulted in a price war, with brokers offering lower spreads and commissions to attract clients. As a result, brokers like MB Trading found it difficult to compete, especially with larger players in the market.
Another factor that contributed to MB Trading’s exit was the regulatory pressures. The forex market is highly regulated, and brokers must comply with various rules and regulations set by regulatory bodies such as the NFA and FINRA. These regulations are designed to protect clients from fraud, abuse, and other malpractices in the industry. However, compliance with these regulations can be costly and time-consuming, especially for smaller brokers like MB Trading.
Changing market conditions also played a role in MB Trading’s exit from the forex market. The forex market is highly volatile, and prices can fluctuate rapidly in response to various economic and political events. This can be challenging for traders and brokers alike, as they must constantly monitor market conditions and adjust their strategies accordingly. However, MB Trading may have found it difficult to keep up with the changing market conditions, leading to a decline in its performance and profitability.
So, what happened to MB Trading’s clients? In 2015, the company transferred its clients to TradeKing Forex (Ally Invest), a reputable forex broker that offered similar trading services. The transfer was seamless, and clients were able to access their accounts and continue trading without any interruption. TradeKing Forex also offered a range of additional services, including a wider range of trading platforms, educational resources, and customer support.
In conclusion, MB Trading was a forex broker that offered trading services in various financial markets. However, the company was forced to exit the forex market in 2015 due to increasing competition, regulatory pressures, and changing market conditions. Its clients were transferred to TradeKing Forex (Ally Invest), a reputable broker that offered similar trading services. While MB Trading’s exit was a loss for the forex industry, it demonstrated the challenges faced by smaller brokers in a highly competitive and regulated market.
