FXOpen launches first ever MT4 ECN platform

5 Comments

FXOpen has been in public beta testing since April 28th on its new MT4 ECN and anyone interested can download it and try it out.

(I know that most of people are completely confused by the MM/STP/ECN/DD/NDD terms so I’ll write a post next week explaining the exact differences). For now, I’ll just explain that an ECN broker is a broker that lets you actually participate in the Forex marketplace and you buy/sell to and from other traders, unlike STP or a Market Maker).

I prepared a much more indepth review lately so this one is no longer relevant. Read the through review here:  http://forexmagnates.com/fxopen’s-mt4-ecn-is-much-better-than-originally-thought/.







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5 Comments on this post

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  1. oakmonster said:

    Hi. I have been using the demo ECN for a few weeks now. Having traded with other ECNs, so far the demo I’ve used looks legit.

    To test if an ECN is legit and real, you can try a few things.

    1) Try to place an order inside the spread. If spread changes, it is an ECN. It works in the fxopen demo platform.

    2) Ask the ECN broker who the counterparty was in a given deal. Most ECN brokers will give you this info. However, I won’t be able to test that until I can open a live account.

    3) Open a limit order and you should see it in the lvl II quotes. There is only one level in the fxopen ECN demo but they promised multi level lvl II in live accounts. That test is easy when you see multiple levels.

    4) Commission Structure. If there is commission plus interbank spreads, its a good sign that it is an ECN. The spreads in fxopen look very similar to other ECNs like hotspot and dukascopy. You can check that yourself.

    I think it’s too early to start being suspicious of them. Fxopen seems to be trying to do the right thing and the reason why you have already mentioned.

    MT4 with a true ECN environment is good for marketing. ;)

    June 22nd, 2009 at 2:49 am
  2. Michael Greenberg said:

    Hi oakmonster,

    Thanks for the detailed reply. I was waiting for someone from FXOpen to shed more light on this new feature. If you noticed, I wasn’t really critical of FXOpen rather I was arguing that MT4 wasn’t designed to be a platform for ECN brokers, hence the limited functinoality.

    Best,
    Michael

    June 22nd, 2009 at 3:01 am
  3. oakmonster said:

    Yeah, I was a little sceptical. But they have the level II there and you can have an effect on it so it looks ok so far like that. One of their guys at expo in Malaysia told me they bridged multiple liquidity providers. Hotspot, RBS and Currenex were mentioned (well as far as I remember) that’s why when I compared their prices, I used hotspot to see how close they were.

    If I remember, I’ll report back after I get a live ECN from them. I want to hide some money from the taxman offshore :D

    June 22nd, 2009 at 4:44 am
  4. Forex Robot Busters said:

    I’ve been testing the MT4 ECN function as well with FX Open. I agree, it seems to be valid. Granted, the guys at MetaTrader themselves still say that their MT4 platform isn’t capable of being used with an ECN broker, but my understanding with FX Open is that they created the necessary bridges required in order to use MT4 with their ECN capabilities.

    However, they do have their own platform that can be used with ECN as well.

    And until you write up your post on the differences, I’ve posted an article on what an ECN broker is and how it compares to a MM and STP.

    What is an ECN Broker?

    Regards,

    Forex Robot Busters

    July 11th, 2009 at 7:43 pm
  5. Forex Robot Busters said:

    Ooops. The link didn’t work. Here is the post:

    http://forexrobotbusters.com/forex-education/ecn-broker

    July 11th, 2009 at 7:45 pm

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