It is no secret that MT4 brokers often engage in price and order execution manipulation, thereby obstructing scalping strategies or those strategies that function similarly to scalping strategies. Many traders find out that their expert advisors stop working quickly – if they work at all – in a real account, even though they were functioning well enough in a demo one.
This happens not only due to broker manipulation, but also as a result of problems, including those of slowness, in the transfer of data between the MT4 terminal and the MT4 server.
A comparison of order execution times between MT4 and FIX API will show that FIX API offers execution times that are several times better than those of MT4. For example, an order placed through LMAX FIX API takes about 4 milliseconds to get executed, an order placed through a broker such as Saxo Bank takes about 40 milliseconds to get filled, and an order through an MT4 server – in A-book mode – needs some 150 milliseconds.
It should be obvious that the slippage on an order filled on one of the quick markets might be to the tune of several pips, which will render any strategy that aims to make a profit of 3-4 pips useless.
That’s not to mention the rather high possibility of active dealing on the part of the broker.
You might have already heard about the FIX Protocol, which is used by financial institutions for transmission of price quotes and orders. This is no longer available exclusively to large financial organizations and brokerage firms – retail traders can now open accounts with FIX API access. What’s more, it isn’t necessary to put up a lot of money to open such an account. Some brokerage firms will open an account for you if you have a minimum deposit of only $500. Also, all cTrader brokers provide FIX API access by default – you need only click on a button in the cTrader terminal.
However, in order to make your advisor compatible with FIX API, you need to rewrite its code to change it from MQL4 to C++ or C# with a FIX API connector. This is quite expensive, and if your advisor is using built-in MT4 indicators, they will have to be rewritten as well. This can easily set you back at least $5,000; if you’re using several advisors, this will not be worth the money.
Fortunately, there’s a solution: FIX API Trader. This product gives you all the advantages of a FIX API account for your advisors.
The advisor will be operated by the MT4 terminal, using built-in or custom indicators, but orders will be sent not to an MT4 server but to a FIX API account, which you’ll need to open at a brokerage firm (which, as I’ve mentioned, is not a problem).
So if you’re having a hard time finding a broker with whom you can use advisors that were once workable, using a FIX API account in conjunction with FIX API Trader is the perfect solution to this problem.
Also, FIX API Trader has a built-in terminal for preset trading. With the click of a button, you can move a stop into breakeven territory and so on.
The time has come to approach forex trading the way professionals do, and there is no reason you shouldn’t do it as well, given that this opportunity is available to any trader.