FXCM and MetaTrader 4: Questions and Answers....
FXCM gets a multitude of questions about the MT4 platform so I thought I would write a detailed blog post covering those questions. So let's start with the basics.
What is MetaTrader4?
MetaTrader 4 (MT4) is a trading platform developed by Metaquotes. Metaquotes is the software developer which created the MT4 platform. It's popular with brokers because Metaquotes offers a turnkey solution whereby someone wanting to start a forex brokerage can license the platform and back-end execution to the platform without having to design their own system. The broker simply has to add the liquidity (pricing) to the platform and they're ready to go. FXCM in comparison developed its proprietary platform, the FX Trading Station II, in-house rather than purchasing the software. This gives us the added benefit of being able to go into the platform and customize or add features at any time.
Why is MetaTrader 4 so popular with traders?
MT4 is very popular due to the Expert Advisor functionality. Expert Advisors allow you to code your strategy into an automated strategy which will automatically trade your MT4 account. Second, the charting package on MT4 is very popular due to the expansive list of indicators and tools available.
Why did FXCM decide to offer MT4?
For the obvious reasons above
, it's a popular trading platform (in particular due to expert advisors). Nearly every product we release or update we make is due to client request. While we do not think it's the best platform for self-trading (I will explain later), it does have its advantages for automated trading and programming features.
Should I use the FX Trading Station II or MT4?
If you are self-trading your account, we recommend using the FX Trading Station II because it was designed specifically for self-trading using No Dealing Desk execution. It will also have additional features such as one-click trading and more extensive trading from the charts options.
What role does Boston Technologies play with FXCM's MT4 offering?
The complete MT4 turn-key brokerage solution contains the front end (the platform you download) and the back-end (execution engine and record keeping). FXCM has its own back-end for execution and record keeping. In particular, MT4 was designed for a dealing desk whereas FXCM uses No Dealing Desk execution therefore MT4’s back-end was not used. In order to connect the MT4 platform to FXCM’s execution and reporting, there has to be a technology bridge between the two allowing them to communicate. It’s as though the two programs speak different languages and there has to be a translator. Boston Technologies provides that communication link bridging the two programs or providing the translation letting FXCM know what the MT4 program is trying to do.
What makes FXCM’s MT4 different from most other MT4 offerings?
MT4 has traditionally been used by dealing desk brokers. Trading directly with a dealing desk poses a conflict of interest because the broker can profit from trader losses if the trades are not offset. FXCM chose to integrate MT4 into No Dealing Desk execution so your orders are executed back to back with a global bank. This also means you can use any self-trading or expert advisor strategy, even scalping.
How can I automate my trading strategy into an Expert Advisor?
You can either code the strategy yourself or pay a programmer to do it for you. MT4 strategies are coded in MQL programming language which was created by Metaquotes. The website MQL4.com has a tutorial if you would like to learn the language and code it yourself. If you want to pay a programmer, you can either find one on your own or hire FXCM’s programming services team. (A non-disclosure agreement is signed of course protecting your intellectual property).
If you do decide to use MT4, I highly recommend watching all of the MT4 tutorial videos on the Informed Trades website Learn to Trade Stocks, Forex, Derivatives, and Commodities - InformedTrades - Free MetaTrader Course. It’s one of the best tutorials I have found.
And of course, you can register for an MT4 demo through FXCM to test the platform:
Please feel free to ask any questions I might have missed.
All the best with your trading!
Jason
What is MetaTrader4?
MetaTrader 4 (MT4) is a trading platform developed by Metaquotes. Metaquotes is the software developer which created the MT4 platform. It's popular with brokers because Metaquotes offers a turnkey solution whereby someone wanting to start a forex brokerage can license the platform and back-end execution to the platform without having to design their own system. The broker simply has to add the liquidity (pricing) to the platform and they're ready to go. FXCM in comparison developed its proprietary platform, the FX Trading Station II, in-house rather than purchasing the software. This gives us the added benefit of being able to go into the platform and customize or add features at any time.
Why is MetaTrader 4 so popular with traders?
MT4 is very popular due to the Expert Advisor functionality. Expert Advisors allow you to code your strategy into an automated strategy which will automatically trade your MT4 account. Second, the charting package on MT4 is very popular due to the expansive list of indicators and tools available.
Why did FXCM decide to offer MT4?
For the obvious reasons above
, it's a popular trading platform (in particular due to expert advisors). Nearly every product we release or update we make is due to client request. While we do not think it's the best platform for self-trading (I will explain later), it does have its advantages for automated trading and programming features. Should I use the FX Trading Station II or MT4?
If you are self-trading your account, we recommend using the FX Trading Station II because it was designed specifically for self-trading using No Dealing Desk execution. It will also have additional features such as one-click trading and more extensive trading from the charts options.
What role does Boston Technologies play with FXCM's MT4 offering?
The complete MT4 turn-key brokerage solution contains the front end (the platform you download) and the back-end (execution engine and record keeping). FXCM has its own back-end for execution and record keeping. In particular, MT4 was designed for a dealing desk whereas FXCM uses No Dealing Desk execution therefore MT4’s back-end was not used. In order to connect the MT4 platform to FXCM’s execution and reporting, there has to be a technology bridge between the two allowing them to communicate. It’s as though the two programs speak different languages and there has to be a translator. Boston Technologies provides that communication link bridging the two programs or providing the translation letting FXCM know what the MT4 program is trying to do.
What makes FXCM’s MT4 different from most other MT4 offerings?
MT4 has traditionally been used by dealing desk brokers. Trading directly with a dealing desk poses a conflict of interest because the broker can profit from trader losses if the trades are not offset. FXCM chose to integrate MT4 into No Dealing Desk execution so your orders are executed back to back with a global bank. This also means you can use any self-trading or expert advisor strategy, even scalping.
How can I automate my trading strategy into an Expert Advisor?
You can either code the strategy yourself or pay a programmer to do it for you. MT4 strategies are coded in MQL programming language which was created by Metaquotes. The website MQL4.com has a tutorial if you would like to learn the language and code it yourself. If you want to pay a programmer, you can either find one on your own or hire FXCM’s programming services team. (A non-disclosure agreement is signed of course protecting your intellectual property).
If you do decide to use MT4, I highly recommend watching all of the MT4 tutorial videos on the Informed Trades website Learn to Trade Stocks, Forex, Derivatives, and Commodities - InformedTrades - Free MetaTrader Course. It’s one of the best tutorials I have found.
And of course, you can register for an MT4 demo through FXCM to test the platform:
Please feel free to ask any questions I might have missed.
All the best with your trading!
Jason
Total Comments 8
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Hi Jason
Is there any chance in the near future tick volume will be shown on Tradestation II.
At present as I understand it this is only available with MetaTrader.
Thanks
GPosted 01-13-2010 at 02:56 PM by x3mtrading
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Hi G,Quote:Originally Posted by x3mtrading
Hi Jason
Is there any chance in the near future tick volume will be shown on Tradestation II.
At present as I understand it this is only available with MetaTrader.
Thanks
G
I haven't seen any plans to add it to the trading station, but I will submit this to the developers for future updates to the charts. The suggestions are always welcome.
JasonPosted 01-14-2010 at 08:41 AM by Jason Rogers 
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ThankyouQuote:Originally Posted by Jason Rogers
Hi G,
I haven't seen any plans to add it to the trading station, but I will submit this to the developers for future updates to the charts. The suggestions are always welcome.
JasonPosted 01-14-2010 at 09:52 AM by x3mtrading
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Mt4 platform tutorial?
Is there such a tutorial for this platform, and if so, where can I locate it?
If not, what is the closest help site for the same? Thanks.Posted 01-14-2010 at 07:15 PM by Unregistered [Show Appreciation] What's This? -
Mt4 platform tutorial?
Hi,Quote:Originally Posted by Unregistered
Is there such a tutorial for this platform, and if so, where can I locate it?
If not, what is the closest help site for the same? Thanks.
Here is FXCM's video tutorial: http://www.fxcm.co.uk/media/flash/op...T-05202009.swf
And Informed Trades has a good set of tutorials as well here: http://www.informedtrades.com/383698...-part-1-a.htmlPosted 01-15-2010 at 02:18 PM by Jason Rogers
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Hello Jason,
I was wondering why is there a minimum account opening balance of 2000$ for the metatrader platform?
I am looking forward to open a account with fxcm but i am not sure about the principal amount i am going to commit( considering i am beginner), i am particularly interested in mt4 as i can get the tick volume and it plays a vital role in my trading plan.
Thanks,
Nik.Posted 01-16-2010 at 06:18 AM by niksos
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Hi Nik,Quote:Originally Posted by niksos
Hello Jason,
I was wondering why is there a minimum account opening balance of 2000$ for the metatrader platform?
I am looking forward to open a account with fxcm but i am not sure about the principal amount i am going to commit( considering i am beginner), i am particularly interested in mt4 as i can get the tick volume and it plays a vital role in my trading plan.
Thanks,
Nik.
Yes, there is a minimum balance requirement of $2,000 to open the MT4 account. All of the MT4 accounts are opened through FXCM UK.
If you didn't plan to start with that amount, you could always register an MT4 demo and trade a live micro account. You can register for the MT4 demo account HERE.
Cheers,
JasonPosted 01-19-2010 at 12:13 PM by Jason Rogers
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great post!!!! check out MT4 Graphical Spread Indicator – 4xSpread ‹Forex Trading Tools for a FREE MT4 spread indicator!!!
Posted 11-19-2010 at 10:24 AM by juanyerfo
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