Connecting MetaTrader 4 to an ECN Broker

Posted on April 23, 2008

mt4.jpg

Let’s face it, the majority if not all forex brokers that support the MetaTrader 4 platform are pure bucketshops. I have yet to find ONE MT4 broker which offers a true non-dealing desk trading environment. A lot of them claim this, but it is all pure bullshit, if you’ll pardon my french. If they have fixed spreads they CANNOT be a non-dealing desk broker! Any broker that offers fixed spreads by definition can’t be offering a no dealing desk trading platform. Just be aware that when there is a trading desk involved (be it human or computer operated) you are not trading in a true market environment but instead are in a “sandbox” type of trading environment where the broker has full control over your position. So how do you get around this? The solution is simple, use ECN brokers.

The thing is that some of us are somewhat attached to the MetaTrader 4 platform. I personally think it is a pretty neat and functional trading platform. The scripting abilities are excellent, and there are just so many free indicators and expert advisors available for this platform that it has become wildly popular with retail traders. However, most ECN brokers do NOT support the MT4 platform. One of the main reasons is that MT4 server/client software was never meant to operate in an ECN trading environment. Many brokers have tried to adapt it to an pure ECN trading environment and failed. So can we have our cake and eat it too? Yes, you can, but it involves a bit more work.

I’m going to tell you about some possible solutions which you can use to get MT4 to work more or less reasonably well with some ECN brokers. By the use of a specialized API (programming interface) it is possible to setup a virtual bridge between MT4 and the ECN platform. This will give you a more accurate, reliable, and less “doctored” price feed along with SPT (straight pass through) execution so your trades get routed directly into the interbank environment.

So far I know of 3 ways you can get this done:

1 – Some ECN providers offer their own custom API you can use. I only of one ECN broker that offers this solution and they’re called HotspotFX. For more details check out this link:

http://eu.hotspotfx.com/trading-software/connectivity/api-for-metatrader/

2 – You can use commercial software. I scoured the net and forex forums and there just isn’t that much relevant software out there. One that I did come across is called TradeBullet. See their homepage for more details.

http://www.tradebullet.com/

3 – The free route – always my favorite. However the disadvantage to this solution is that it may not have all the capabilities or bells and whistles of commercial alternatives. The only free solution that I’ve found is called TWSLink. This solution is free, so no hand holding for you! You’re just going to have to figure out things for yourself using the documentation available. Visit this website for more details:

http://www.trade-commander.org/twslink/twslink.htm

If anyone else knows other solutions please feel free to contact me and I will gladly add it to this article with links to your site(s) and everything.

Until next time, many pips to you all!

Alan

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82 thoughts on “Connecting MetaTrader 4 to an ECN Broker”

  1. Pingback: Connecting MetaTrader 4 to an ECN Broker | Canadian Forex Blog

  2. Hi Alan,

    Very good info. I`ve been shocked.. how a good reputable broker like fxcm will changed their trading platform to MT4.. from your info, Iam planning to test hotspotfx trading platform..

    Thanks again..

  4. Hello,
    I just found a “pure ECN MT4”, there: http://www.metaspotfx.com/

    Apparently they’re related to Hotspot FX (which were my favs until I discovered metaspot), but the service seems not to be available in the US at the moment (regulation needed?). The solution you mention with Hotspot FX seems unclear to me. I never found a piece of software from them to put somewhere and use MT4. As for the free solution, it looked complicated to me. Anyway, that was just my 2 cents.

  9. Hi Alan,

    Thank you for your site and all of the great information. I’m trading with FxPro with a scalping system and so far have had a good week. This is only my first week of live trading, however. Can I beat these guys using a scalping strategy, despite them presumably trading against me? And I assume if I do, my account will be closed. I’m receiving a trade volume rebate and no commissions, so I’m trying to determine if a move to a MT4 ECN price feed broker is warranted.

    Thanks again,

    Ursala

  10. Glad you like my site Ursala 🙂

    Well, it depends on how much of a scalper your scalping strategy is…lol, that may sound confusing, but what I mean is that it depends on how long you hold on to the position before closing it. Some dealing desk brokers have VERY stringent terms and conditions, and also very strict anti-scalping policies. I’d suggest you check with FxPro and see what their policies are in regards to scalping. Worst case scenario is that they could refuse you as a customer and close your account.

    I don’t know whether you can beat them or not, but the deck is heavily stacked against you! The broker controls everything. They could easily mess with your trades by manipulating the price feed to introduce artificial price spikes, and other dirty tricks. For sure they have software that monitors trade execution and closure times in order to hunt down scalpers.

    I personally do not recommend most dealing desk brokers for use with extremely short term trading strategies. If you want to do pure and true scalping (as close as possible in the forex world) then the only way to go IMHO is with a PURE ECN broker.

    As for whether it’s warranted for you to move on to a MT4 ECN price feed that really depends on your account size and also the size of the lots you trade with. If your technique is successful and consistent and you trade with lots of sufficient size to warrant paying the $15-25 commission most ECN broker charge then I’d say YES it is definitely worth moving to an ECN broker with a MT4 price feed (if you need MT4 that is).

    Here is but one broker quickly comes to mind which offers MT4 + ECN price feed:

    http://www.fastbrokers.com/index.php?VA001

    For non MT4 Dukascopy is also great. HotspotFX is excellent for this as well.

  11. Hi Alan,

    Thank you very much for your reply. This is so frustrating that when you find a broker who might not go bankrupt and take your money with them, they cheat and trade against you. I talked to a representative at HotSpotFX and he told me that a live account is available with ATC Brokers with HotSpot’s ECN price feed and the commission is $4 per standard lot.

    I’m going to check with Fast Brokers also and thank you for that information. Have a good day.

    Best Regards,

    Ursala

  12. $4 per standard lot? :O are you sure it isn’t $14? $4 is quite an excellent deal.

    Best of luck to you and happy trading.

  13. Yes I did confirm with Alex at HotSpot that an account opened at ATC is charged a commission of $4 per standard lot. I think it probably means $8 round trip.

    I also talked to Giovanni at Fast Brokers and he was really helpful and said they have a $15 per round trip commission with a 10k minimum opening amount on the Fast Pro platform.

    Best Regards,

    Ursala

  14. Thanks Ursala!

    Yeah was Giovanni really nice and helpful to me too.

    Thanks for visiting my blog and I wish you profitable trading..

    Cheer

  16. No, but I heard of it. It appears they offer a STP trading model – not really ECN. I couldn’t also help but notice a lot of grammatical errors on the site. The company claims to be based out of Finland. If anyone has any more info on this broker feel free to post.

  19. Hmm, I see. Thanks for letting us know Darryl. Let us know if you come across any other ECN brokers.

    Cheers, and many pips to you in the upcoming year!

  20. Pingback: _rdb_The Best Free EA - Page 80 - Forex Trading

  21. OK – I’m a little confused, since I don’t think as a U.S. resident that I can get a HotSpotFX account. So, how would one integrate a Dukascopy account with MT4? Is it covered above or am I missing something?

  23. Thanks for the info. I also run a software company (not in the Forex space) so we have programmers on staff. It will not be a problem. Is anyone else interested in getting a plug and play solution for this? If so, then does the admin mind if I post a way to contact us about it here?

  24. No I don’t mind, more power to you..if it’s good and it works I’ll even write a post about it. Would you be willing to send me a demo (you can limit any way you want) of the finished product if you decide to code it because I too would be interested in hooking up MT4 to Dukascopy.

  25. OK – great. I’m basically just looking to get MT4 in an environment without a dealing desk. I’m curious what you think about these guys.
    …
    http://www.investtechfx.com/about-globex.asp
    …
    In their account info page they claim that they do not have a dealing desk because of the bank they cite in the link above.

  26. stay away from them..they are not really a Canadian brokerage firm…

    browse on over to this forum:

    http://www.forexautopilotforum.com

    and search for Investtechfx as there is a thread somewhere about them…I can’t remember the exact link (it’s a long one)

    Marty also have a look at this brokerage firm:

    http://www.fastbrokers.com/index.php?VA001

    Specifically their MT4 Pro feed (ECN price feed with MT4)

    Also ATC Brokers is another broker which will soon offer MT4 + ECN price feed. I can let you know when they get that up and running if you’d like.

  27. Yes, please let me know.
    …
    To comment on your reply, let me clarify my understanding (in case we are to code a MT4 to ECN bridge). The goal is not just the price feed, but the ability to place, modify and close orders as well, right?
    …
    That’s what HotSpotFX does. I’m going to call HotSpotFX to see about U.S accounts since they support a full API integration with MT4 now…or do they provide actual MT4 plugins/EAs? Has anyone used this yet?

  29. Just signed up for a live account with HotSpotFX. No issue for U.S. residents or entities. You even specify MT4 as your trading platform when signing up.

    I’ll be running it in demo until they approve the account.

  33. Definitely! I was going to make a post about that but lately I’ve been a bit lazy lol…must be a long lasting hangover form the holiday season parties ;)…

  34. Would be interested in hearing from anyone able to make a reliable mt4 to Dukascopy bridge.
    Marty could i have your contact details please for when you eventually make one. At the moment fastbrokers and ATCbrokers look appealing but dukascopy has twice the liquidity levels of hotspotfx so thats why im interested in them, their platform is nice also.
    cheers

    Ryan

  35. Marty, would also be interested in any developments with a MT4 to Dukascopy bridge. Let me know how to get in contact with you.

    Thanks,
    Scott

  37. Peter that solution is mainly targeted at brokers if I’m not mistaken. So basically it’s mainly if you want to bridge the MetaTrader SERVER with an ECN backend platform. That also explains the high cost…

  38. Hi Alan

    I was quoted $7500 to set up a bridge plus $1500 per month to have metatrader connected via a bridge to hotspot and I am definately not a broker. Naturally I told them thanks but no thanks.

  39. Oh I see. Ouch! That is freaking expensive just for a simple MT4 to ECN bridge. I suggest you wait until ATC Brokers and MB Trading get their MT4 platforms ready for prime time.

  41. I found out about an other metatrader broker called BroCo who use MT4 connected to Currenex. They are brokers based in St Petersburg, Russia. Would you trust your money with them?

  42. Personally I would not. I don’t know about the rest of you folks, but I heard way to many scam stories to trust any company based our of Russia – same goes for many of the non OECD countries or former eastern soviet block countries.

  43. Mbtrading MT4 is very buggy with v v big spikes. Not really reliable. Those spikes have long tails tat stretches over 800 pips

  44. Hmm, yes you’re right. I too found this out, but we must keep in mind that their mt4 platform is still in the beta stages, so it’s a bit premature to judge it.

  49. Hmm, Russian broker…not sure I’m entirely comfortable with that – no offence to my Russian visitors, but I’ve seen so many scam originating from that country that it’s hard to put any more trust in an online venture based out of the Russian Federation.

  50. hey there, a few questions i wanted to ask, i hope someone there can help.
    1.Will all these ECN brokers offer the same spreads? if not who is the lowest with best execution?
    2. What are your recommendations for a broker that can best handle an account size of USD 250,000 up to USD 1,000,000(i need security)
    3. I see dukascopy handle large accounts, are they recommended for large accounts or do you know some else?
    4. I heard from someone that Canadian companies have up to USD 1,000,000 security against bankruptcy of the broker, is this true?
    5. With these ECN brokers where are the funds held, are they segregated accounts or what?

    by the way the site is awesome, keep the good work. Love to hear your answers to my questions!

    goodluck traders

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