MBFX Trading Strategy
The MBFX forex trading strategy is one of the trading strategies that employ the price action system of analysis to create trading signals. Created by a 27-year veteran of forex trading, this strategy is a simple but very effective way of trading the markets.
The strategy runs on the principle of price reversals. It utilises two forex indicators to detect periods when the markets top out to create a possible selling area, and when the markets bottom out to create a region of buying. To put it very simply, the strategy tells the trader to buy when the price touches the green bars of one of the indicators, and to sell when the price touches the red bars of one of the indicators.
Top Forex Brokers UK
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Pepperstone provides forex spreads on the EUR/USD averaging just 0.12 pips with their Razor account. This is highly competitive. Their extensive portfolio includes over 100 currency pairs, which exceeds what most rivals offer. Furthermore, Pepperstone stands out by offering three unique currency indices: USDX, EURX, and JPYX, which are rare on other platforms. They have been recognised with our 'Best Forex Broker' award twice.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.4 0.1 0.4 Total Assets FCA Regulated Platforms 100+ Yes MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower -
XTB offers over 60 currency pairs with competitive spreads, averaging 1 pip on major pairs. The xStation platform is user-friendly, featuring over 30 indicators in its charting package and a variety of order types, supporting diverse trading strategies and risk management.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.4 1.0 1.4 Total Assets FCA Regulated Platforms 70+ Yes xStation -
FXCC champions its competitive forex trading environment. ECN spreads can drop to an impressive 0.0 pips during busy trading periods. Offering more variety than many competitors, it supports over 70 currency pairs. Furthermore, traders benefit from MT4, renowned for its exceptional charting capabilities, specifically designed for forex trading.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.0 0.2 0.5 Total Assets FCA Regulated Platforms 70+ No MT4, MT5 -
IBKR offers a vast range of over 100 forex pairs, including major, minor, and exotic currencies, outstripping most competitors except CMC Markets. Trading is available across multiple platforms with institutional-grade spreads beginning at 0.1 pips. There are also 20 sophisticated order types, such as brackets, scale, and one-cancels-all (OCA) orders, enhancing trading strategies.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.08-0.20 bps x trade value 0.08-0.20 bps x trade value 0.08-0.20 bps x trade value Total Assets FCA Regulated Platforms 100+ Yes Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower -
Vantage provides over 55 currency pairs, exceeding the industry norm, giving traders ample opportunities. With a robust liquidity pool, forex spreads start at 0.0 pips on the ECN account, often beating other options. Additionally, there are no commissions, deposit fees, or hidden charges.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.5 0.0 0.5 Total Assets FCA Regulated Platforms 55+ Yes ProTrader, MT4, MT5, TradingView, DupliTrade -
IC Markets remains dedicated to offering tight 0.0-pip spreads on major currency pairs like EUR/USD, ensuring outstanding execution with an average speed of 35 milliseconds. Ideal for traders seeking high performance, those dealing in large volumes can also enjoy rebates of up to $2.50 per forex lot.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.23 0.02 0.27 Total Assets FCA Regulated Platforms 75 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower -
FOREX.com remains a leading FX broker, providing 80 currency pairs with highly competitive fees. EUR/USD spreads can reach as low as 0.0, with a $7 commission per $100k, making it a standout choice.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.3 1.2 1.4 Total Assets FCA Regulated Platforms 84 Yes WebTrader, Mobile, MT4, MT5, TradingView
Pepperstone
XTB
FXCC
Interactive Brokers
Vantage FX
IC Markets
Forex.comSafety Comparison
Compare how safe the MBFX Trading Strategy are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| FXCC | ✘ | ✔ | ✘ | ✔ | |
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| Forex.com | ✔ | ✔ | ✘ | ✘ |
Payments Comparison
Compare which popular payment methods the MBFX Trading Strategy support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXCC | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| Forex.com | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the MBFX Trading Strategy at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| FXCC | iOS & Android | ✘ | ||
| Interactive Brokers | iOS & Android | ✔ | ||
| Vantage FX | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| Forex.com | iOS & Android | ✘ |
Beginners Comparison
Are the MBFX Trading Strategy good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| FXCC | ✔ | $0 | 0.01 Lots | ||
| Interactive Brokers | ✔ | $0 | $100 | ||
| Vantage FX | ✔ | $50 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| Forex.com | ✔ | $100 | 0.01 Lots |
Advanced Trading Comparison
Do the MBFX Trading Strategy offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| XTB | - | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| FXCC | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Interactive Brokers | Capitalise.ai, TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| Forex.com | Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✔ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the MBFX Trading Strategy.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| FXCC | |||||||||
| Interactive Brokers | |||||||||
| Vantage FX | |||||||||
| IC Markets | |||||||||
| Forex.com |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- Pepperstone now offers spread betting via TradingView, delivering a streamlined and tax-efficient trading experience with sophisticated analytical tools.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
Cons
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On XTB
"XTB excels for novice traders with its superb xStation platform, minimal trading costs, no required deposit, and outstanding educational resources, many of which are fully integrated into the platform."
William Berg
Reviewer
Pros
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- Setting up an XTB account is straightforward and fully online, requiring only a few minutes. This simplicity eases new traders into the world of trading.
- XTB offers a superb array of educational resources, such as training videos and articles, embedded within the platform to assist traders of all experience levels.
Cons
- Trading fees are competitive, with average EUR/USD spreads of about 1 pip. However, they are not as low as the most affordable brokers, such as IC Markets. Additionally, an inactivity fee applies after a year.
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
- The demo account lasts only four weeks, posing a challenge for traders wanting to fully explore the xStation platform and refine short-term strategies before investing actual money.
Our Take On FXCC
"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."
Pros
- FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.
- FXCC offers competitive and transparent ECN spreads starting from 0.0 pips, with no commissions. This makes it one of the most cost-effective forex brokers available.
- There are no deposit fees other than standard cryptocurrency mining charges, which benefits active traders.
Cons
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
- The variety of currency pairs surpasses most options, but the choice of other assets is limited. Notably, stocks are absent.
- FXCC's exclusive MetaTrader platform is a limitation, especially when compared to more versatile options like AvaTrade, which offers five different platforms to cater to various trader needs.
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- While initially targeting seasoned traders, IBKR has recently widened its appeal by eliminating its $10,000 minimum deposit requirement.
- IBKR offers an economical environment for traders, featuring low commissions, narrow spreads, and a clear fee structure.
- A wide range of third-party research subscriptions, both free and paid, are available for traders. Additionally, by subscribing to Toggle AI, traders can receive commission rebates from IBKR.
Cons
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
Our Take On Vantage FX
"Vantage is an ideal choice for CFD traders looking for a well-regulated broker with access to the dependable MetaTrader platforms. With a swift sign-up process and a minimum deposit of $50, starting trading is simple and fast."Tobias Robinson
Reviewer
Pros
- Opening a live account is both straightforward and swift, requiring under 5 minutes to complete.
- The broker recently expanded its range of CFDs, offering more trading opportunities.
- Vantage addresses the needs of passive investors through user-friendly social trading on ZuluTrade and Myfxbook.
Cons
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- It's unfortunate that some clients must register with the offshore firm, which provides reduced regulatory safeguards.
- Regrettably, cryptocurrencies are accessible solely to clients in Australia.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- In 2025, IC Markets earned DayTrading.com's accolade for 'Best MT4/MT5 Broker' due to its top-tier MetaTrader integration. This achievement highlights the broker's continuous refinement over the years to enhance the platform experience.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
Cons
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
Our Take On Forex.com
"FOREX.com excels in serving traders of all levels, offering more than 80 currency pairs, spreads starting at 0.0 pips, and competitive commissions. Its robust charting platforms provide over 100 technical indicators and comprehensive research tools."
Pros
- With more than two decades of expertise, strong regulatory governance, and numerous accolades, including a second-place finish in our 'Best Forex Broker' awards, FOREX.com is globally renowned as a reliable trading platform.
- An abundance of educational resources is available, such as tutorials, webinars, and an extensive YouTube channel, designed to enhance your understanding of financial markets.
- FOREX.com provides top-tier forex rates beginning at 0.0 pips, along with attractive cashback rebates up to 15% for dedicated traders.
Cons
- Demo accounts are typically limited to 90 days, hindering effective strategy testing.
- Funding choices are restricted when compared to top options such as IC Markets. Many popular e-wallets, including UnionPay and POLi, are noticeably absent.
- Although FOREX.com has expanded its range of instruments, its product offering is confined to forex and CFDs. Consequently, there are no investment options for actual stocks, ETFs, or cryptocurrencies.
Indicators
The MBFX trading system utilises two indicators namely:
1) Currency meter
2) MBFX Timing Indicator
The currency meter is used to detect which currencies are suitable for trading. Generally speaking, this strategy suits trending currencies very well. When using the currency meter to test the suitability of a currency for trading with the MBFX strategy, check to see if the price action of the currency is able to get to both extremes of movement, as depicted by the bars of the currency meter. These bars are red on top, green below and blue in the middle. If a currency is able to achieve this, then it can be traded with the MBFX strategy.
The MBFX Timing Indicator is the cornerstone of the strategy. It appears in an indicator window under the currency asset chart. It works by changing colours like the lights at a traffic stop. It turns from green to yellow to red as the price of the asset moves from the oversold to overbought zones, and from red to yellow to green as price moves from the oversold zones to overbought zones. These colour changes serve as the signal to the trader to pull the trigger. We will discuss how to take trades using the colour changes later in the article.
Time Frames
This strategy can be used to trade short, medium and long term time frames. If you are a scalper, then you will find this system useful in picking out points at which sell and buy scalps can be done with greater accuracy than most systems around. The 1 minute chart is the time frame for the scalpers.
If you are a day trader, then the 30 minute and hourly charts are there for you.
However, the 4hour and daily charts serve as the charts of choice, with trading accuracy approaching 98% and of course, with more profits to pull in due to the wide range of price on these charts.
Entry Rules for Long Trades
The trader should go long when these two parameters are satisfied:
1) Price action candle has kissed or cut the green curved lines on the chart.
2) The MBFX Timing indicator has changed colour from red to yellow, or from yellow to green.
Entry Rules for Short Trades
The trader should go short when these two parameters are satisfied:
1) The price action candle has kissed or cut the red curved lines on the chart.
2) The Timing indicator has changed colour from green to yellow or from yellow to red.
In this strategy, there is no room for impatience. The trader must wait for the price action candles to do their job, and then enter the trades at the open of the next candle.
Here’s a note of caution to traders. The real success behind the system is in using money management for all trades. The MBFX trading strategy employs a 2:1 profit to risk ratio, which means that even if a trader has an equal number of winning and losing trades, the trader will still make money. Problems only arise when all money management rules are thrown out of the window, so that disproportionate exposure to the market now tilts the profit to risk ratio markedly in favour of risk, meaning that a lesser number of losers is required to offset the greater number of trade winners. This is a situation the trader must avoid at all cost.
The beauty of this system is that unlike most other systems that use the price action method of analysis, the blue line on the chart serves as the profit target for all trades, whether buy or sell. This gives the trader a clear visual depiction of what needs to be done in terms of profit potential.
The entire MBFX strategy is commercially sold and comes with the complete suite of indicators. The trader should try as much as possible to use this system first on demo, and then on a small volume live account such as the no-deposit account which provides real market conditions at zero risk to the trader.