Comments on: FXOpen launches first ever MT4 ECN platform

By: Forex Robot Busters

Forex Robot Busters — Sat, 11 Jul 2009 23:45:04 +0000

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

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

By: Forex Robot Busters

Forex Robot Busters — Sat, 11 Jul 2009 23:43:51 +0000

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

By: oakmonster

oakmonster — Mon, 22 Jun 2009 08:44:40 +0000

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

By: Michael Greenberg

Michael Greenberg — Mon, 22 Jun 2009 07:01:51 +0000

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

By: oakmonster

oakmonster — Mon, 22 Jun 2009 06:49:45 +0000

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.