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MT4/Currenex Integration

Posted: Thursday, October 01, 2009

by Michael Markarian
Divisa Capital

MetaTrader 4 (MT4), arguably one of the most popular retail Forex trading platforms, is now FIX compliant and being made available through DivisaFX for Straight Through Process (STP) trading to Currenex.

MT4, a favorite among traders since it offers an easy to use interface, comprehensive charting and most of all the ability to run automated trading systems (Expert Advisors or EA's). The system has not been as well liked by the brokers offering MT4 because of the systems shortcomings from an administrative standpoint specifically reporting and risk management. The MT4 system was originally designed as a stand alone system and cannot be easily interfaced with other systems which would allow brokers the ability to automate their risk management. Hence, MT4 has been primarily used by brokers that act as market makers for their client orders acting as the counterparty to their trades. This is commonly known as the "Dealing Desk" model as the firm acts as a dealer selling to the client when client buys and buying from the client when the client sells.

In the past, many third party companies have offered "bridge" solutions which basically pass the trade from the MT4 to a liquidity source. However, these so called solutions have limitations on the order capabilities that could limit some of MT4 functionality including the functionality of EA trading systems. Another issue with using this "bridge" technology, there can be dramatic increases in latency for trade execution which can be costly for the client. Lastly, there are the risks associated with dealing with a third-party software provider. These risks range from stability of their software (the bridge) to the integrity and safekeeping of customer information.

The MT4/Currenex integration offers to solve the problems associated with the current bridge technologies currently in use today. Currenex offers a comprehensive network infrastructure which provides for rapid execution speeds with low latency messaging. The speed of the network is constantly monitored with an SNMP [Simple Network Management Protocol]. Currenex is also constantly upgrading their infrastructure. Core servers are upgraded every 16 months and networks every 2 years.

Here are some of the important benefits of the MT4/Currenex integration:

Complete market transparency of prices and trade execution for the trader.

The ability for Expert Advisors (Automated Trading Systems) to work without interference on the part of the broker.

The use of the industry standard FIX (Financial Information Exchange) protocol messaging to execute transactions. Prior to this MT4/Currenex integration, MT4 was not FIX compliant.

Elimination of the risks associated with using a third-party software provider. The MT4/Currenex integration was developed by MetaQuotes specifically for Currenex.

Divisa Capital LP (DCFX) is an investment house that provides spot foreign exchange trading services to a diversified client base that ranges from financial institutions through to private individuals.

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