ECN MT4
ECN MT4 trading platform is definitely a revolution in the Forex industry. The ECN technology has only recently been integrated with the traditional MT4 platform that every trader is familiar with.
Initially the MT4 terminal was designed for dealing desk companies, but not for ECN brokers. There was not a single opportunity for ordinary traders to connect to the interbank liquidity i.e., the MT4 server was unable to pass clients’ orders directly to an ECN. Finally the MT4 platform was coupled with the ECN technology and thus, a new product, referred to as ECN MT4 Bridge, was introduced to the Forex market.
The usage of the ECN MT4 software contributes to creating a highly competitive, comfortable and liquid marketplace for experienced and sophisticated traders. The platform is compatible to run Expert Advisors that trade Forex 24/7 without any user intervention. The new trading conditions are especially favorable for scalpers who can use the familiar MetaTrader 4 interface coupled with high-frequency execution of orders.
All the benefits of the ECN MT4 trading can be boiled down to the following provisions:
- Fair trading with no conflict of interests
- Excess to the interbank liquidity
- Narrow spreads for all currency pairs (from 0 pips for EURUSD)
- Low latency execution
- Usage of various trading strategies
- EAs application
- No re-quotes
- Unrestricted trading
There are, however, certain difficulties associated with ECN trading via the MT4 terminal. For example, traders should be aware of greater price volatility if compared to quotes of dealing desk brokers who may filter price fluctuations.
Choosing ECN Mt4 trading, you should recon on the liquidity currently available in the market i.e., orders may be executed completely or partially depending on the volume available at a certain price.
Being well-informed about the peculiarities of the ECN trading will help you stay on a safe side and minimize your risks. However, it is obvious for every trader that development of the ECN MT4 platform is a huge step in the Forex software evolution.