Our services are compatible with the popular Metatrader 4 trading platform at any non-FIFO executing Forex Broker. (FIFO stands for ‘First In First Out’ and is a required accounting method in some jurisdictions. Some brokers force the rule in MT4 trade execution as well) Generally speaking, trade copying works very well in replicating the results of the Master account but it is not perfect as it is limited by technology constraints as well as the nature of the markets themselves. Results are dependent upon location, software performance, hardware performance, as well as the broker’s trade server performance, and finally market conditions and liquidity. We have chosen to use ‘Squared Financial’ for our Master account. They are an Irish based broker catering to professional clients who uses “market execution” on the MT4 platform, which is an ECN style ‘best price fill’ from their liquidity providers. Different brokers use different types of execution on the MT4 platform, execution that may or may not be subject to re-quotes. The Squared Financial trade server is based in London UK and we have found their spreads, trade conditions and server performance to be excellent. To find out more information please visit their website.
Accurate Trade Copying
What are some things that help ensure the most accurate trade copying possible with your broker? First would be co-location, or operating your MT4 platform and/or choosing a broker as close to London UK as possible. This could be done by renting a VPS (virtual private server) in the London area if you cannot access it normally. An example of a quality service provider for the London area can be found here. Second, make sure your MT4 has as few chart windows open as possible. This is to ensure that all system resources dedicated to your MT4 are able to copy trades as fast as possible, not display updating price charts. Third, is to make sure you have enough system resources to operate your MT4 at all times. If your system doesn’t have enough system resources during very active and volatile markets your trade copying could be significantly delayed, causing higher slippage. (Slippage is the difference in executed price between the Master and follower accounts) This is because the tick data being updated by the MT4 for every open chart greatly increases during volatile, active markets which can greatly affect performance. Perhaps 90% of trades will execute in fairly normal conditions, but since some are executed during high volatility and action they will be very susceptible to slippage if your system resources are too low. In our experience, even if you do not have a VPS your results will be very close to the Master Account if you run your account on a good computer with a good internet connection and as few open chart windows as possible. (Results will also vary depending on your Broker’s trade execution method) These expectations diminish of course the farther away from London your MT4 or your broker are located. Our partners at ForexSignals.com are experts at this and can handle many things for you. For more information about trade copying software and the setups they use visit ForexSignals.com and their ‘forums’ section.
What is a MAM and what are the differences? MAM stands for “Multi Account Management” and it is a structure commonly used with the Forex asset class and at many Forex Brokers. It is popular because account holders can easily link their account to a chosen manager without depositing funds directly with him/her or their firm. Funds stay in their own personal accounts held at the brokerage along with deposit/withdrawal authority. Forex brokers can offer virtually unlimited numbers of accounts to be centrally controlled by one manager through the MAM software platform. It functionally behaves as if all accounts are pooled, thereby eliminating slippage and varying results. This direct oversight and authority the Manager has over the accounts is very different from signal providing. When trade copying accounts the Manager may have no idea if follower trades have executed properly or even if their account is operating, instead he just worries about the Master account. Finally, the freedom is more limited in MAM accounts. Usually, individuals will appoint just one manager over their MAM account whereas in trade copying they can follow many different signal providers and also trade for themselves.