Broker to Trading

These brokers offer trading on the MetaTrader 5 (MT5) platform on ECN trading accounts. MT5 is a successor to MT4 and offers an expanded range of features including an economic calendar, more inbuilt time frames, technical indicators, graphical objects and order execution types and is optimised for ECN trading. MT5 contains depth of market information as standard (depth of market is bids and offers at various price levels for markets according to the volume being traded).

Like MT4 it offers automated trading strategies called Expert Advisors. Expert Advisors allow the trader to trade using computer programs which automate the trading process. Expert Advisors can be used, modified or built by the trader. To run an Expert Advisor 24/7, even when disconnected from the broker, the trader can use a Virtual Private Server (VPS) which hosts the programs. To program automated trading strategies, MT5 provides the MQL5 language, which is an object oriented programming language. All these brokers also offer MT4 ECN trading.

A trader can apply either automated or non-automated trading on MT5. ECN trading is trading via a broker, but instead of the broker acting as a market maker, they are instead using an algorithm to route orders via their ECN, using STP. The ECN defines the market participants outside of the broker. However the trader is not trading directly with outside liquidity, rather than ECN broker typically uses technology to look for the best price for the trader and delivers this onto the platform.

ECN brokers may use a means of physically locating their trading servers close to the servers of these participants, for example in Equinix data centers. Allied with fibre optical cables and other technologies orders can be sent by the client and filled rapidly.

Traders who trade with automated trading strategies may require that orders are sent rapidly. Such traders may also prefer that the broker does not intervene in the order process (known as 'no dealing desk' intervention). ECN brokers typically offer this facility.

ECN accounts unless they are formatted in such as way that this does not happen, normally take a commission charge, at least for Forex and Gold and Silver. This is automatically deducted and means that the cost of the trade is the spread plus this charge. However spreads for the more liquid Forex pairs can be very low both in terms of a minimum spreads and average at ECN brokers.

It can be seen that ECN brokers, allied with MT5 can make for a suitable environment for automated trading, where the trader is attempting to make use of the advantages of a robot in terms of speed and accuracy over the human trader. However traders who execute their own trades may also appreciate high speed order processing, deeper liquidity and no dealing desk intervention.