“Low Latency Is Extremely Important”: FMLS:23 Panel Explores Technology for MT4/5 Brokers

<p>In the rapidly
evolving Forex trading world the landscape of MetaTrader 4 and 5 (MT4/5)
brokers is undergoing significant changes, reflecting broader shifts in the
financial industry. With advancements in technology and evolving client
expectations, MT4/5 brokers are at a pivotal juncture where adapting to these
changes is not just beneficial but essential for survival and growth. </p><p>The Finance
Magnates London Summit 2023 (FMLS:23) hosted a discussion targeting these critical
issues. The panel titled “Under The Bridge: MT4/5 Brokers Deep Dive” and moderated
by Tom Higgins, the Founder &amp; CEO of Gold-i, featured insights from industry
veterans with expertise spanning technology providers, prime brokers and
brokers themselves.</p><p>MetaTrader Brokers Deep
Dive</p><p>The
panelists delved into the complexities and challenges faced by MT4 and MT5
brokers in the current market environment. They emphasized the need for
advanced technology, not just to survive but to thrive in a market dominated by
a single platform. The discussion covered various aspects, including <a href="https://www.financemagnates.com/terms/l/liquidity/">liquidity</a>
management, risk management, business intelligence, and the importance of
infrastructure.</p><p>"There
are a huge amount of MT4 and MT5 brokers that are still here. What we're
looking at now is what technology do you need to not just survive but thrive in
a market dominated by one platform,” Higgins opened the discussion by framing
the current broker landscape.</p><p>Elina
Pedersen, the CRO at Your Bourse, stressed the significance of technical
sophistication in today’s brokerage landscape. She also emphasized the need for
more sophisticated broker models beyond pure A-book and B-book: </p><p>"Brokers
have to use a more sophisticated model based on hedging. You have to look more
at exposure limits and hedge out positions when it's a good moment,” Pedersen
explained and talked about the shift towards more sustainable business
practices, moving away from strategies like asymmetric slippage that can harm
broker reputation.</p><p>The panel
took place as MetaQuotes, the company behind the popular MT4/5 trading
platforms, <a href="https://www.financemagnates.com/forex/metaquotes-anniversary-celebrates-23-years-of-trading-solutions/" target="_blank" rel="follow">celebrated its 23rd anniversary</a>. The software provided also
published its own market research, which showed <a href="https://www.financemagnates.com/forex/decoding-user-behavior-metaquotes-unveils-insights-on-automated-trading/" target="_blank" rel="follow">that 86% of brokers</a> consider
ultra-low latencies below 4 milliseconds as the most important factor for trading
platforms.</p><p>Technology Is a Must</p><p>Infrastructure
and hosting emerged as critical topics, with panelists agreeing on the
necessity of reliable and high-performance systems, particularly for core
components like trading platforms and connectivity engines. They debated the
merits of different hosting solutions, from dedicated bare-metal servers to
cloud-based services.</p><p>Cristian
Vlasceanu, the CEO at Centroid Solutions, discussed the importance of tailored
technology solutions for brokers, focusing on risk engine for real-time trade
management and infrastructure hosting. </p><p>“It may not
be obvious, but it's more often than not responsible for the growth and
profitability of the broker and can safeguard against expensive problems,”
Vlasceanu warned against underestimating <a href="https://www.financemagnates.com/terms/h/hosting/">hosting</a> infrastructure.</p><p>Daniel
Kruger, the Senior Global Partners Relationship Manager at TMGM, representing the
practical side of brokerage operations, shared insights into the real-world
application of disused technologies. He highlighted the importance of trading
infrastructure and platform choice.</p><p>"If
you're dealing with experienced retail clients, making sure you have multiple
trading servers and low latency is extremely important,” said Kruger.</p><p>Experts
agreed that brokers need robust technology and infrastructure to provide the
best client experience, manage risk effectively, and drive sustainable growth
even during volatile markets. Offering sophisticated trading tools while
protecting the integrity of pricing and execution were seen as key factors for
standing out.</p>

This article was written by Damian Chmiel at www.financemagnates.com.