Better Bridge - better broker?

Excellence in quotes aggregation, latency detection with advanced risk control on the back and front ends, as well as near perfect real time reconciliation/synchronicity between the MT4 platform and back office systems are all becoming critical to broker performance, and profitability in an increasingly competitive FX marketplace. e-Forex talks to some of the leading MT4 Bridge providers to discover more about how different bridging technologies are characterised and what are the key trends in this relatively new, and specialized field.

First Published: e-Forex Magazine 40 / Retail e-FX Provider / July, 2010

What does a Bridge bridge? Most MT4 Bridges provide some kind of incoming quote handling for price information flow into MT4, often referred to as a rate or price feed. The bridge handles various price “mark ups” as well as order execution to liquidity providers, post trade interfacing to back office systems and reconciliation. Many bridges also calculate how much money the broker is making, an item of great interest at higher levels in a typical FX broker operation! Since MT4 has some difficulty handling certain order types, the the bridge helps additionally with this functionality.Obviously low latency information on which the client account trades is a crucial initial area. Once the client or their chosen MT4 “Expert” formula issues a buy or sell order the bridge helps to handle and fulfill this. Since MetaTrader4 in particular has certain ways of handling partial fills, for example, the bridge is able to assist with this functionality.The order also requires routing to one or a...continued

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