Most trading platforms come with enough in-built functionality required for a brokerage to set up its operations. However, as the business starts growing, the default functionality falls short of the broker’s requirements, and additional plugins are needed to simplify the workflow.
Since 2013, when Brokeree Solutions was established, we have helped more than a hundred start-up brokerages to automate and optimize internal processes as well as set their venture afoot for long-lasting success. During these years we’ve been asked a lot of questions regarding the initial setup of the trading platform, and this blog post is an attempt to share some of the commonly used and requested MetaTrader 4 plugins for brokers.
List of plugins
- Feed Server
- Dynamic Margin and Leverage
- Negative Balance Protection
- Dealing Desk Plugin
- Trade Copier
- Extended Agent Commission
Trading platforms on its own, of course, do not have any market data and should be connected with market data providers to stream quotes to MetaTrader 4.
Feed Server technology allows brokers to receive raw quotes and symbol information from multiple market data sources, filter spikes, modify or create new symbols and stream stable price feed to MetaTrader 4.
Risk Management Plugins for MetaTrader 4 brokers
As forex pairs are the most traded financial instruments — with daily trading volume rounding up at $5.1 trillion — brokers may find it improbable to manually detect issues. That is where tools like Dealing Desk by Brokeree Solutions come into play, providing automatic scalping detection and risk management functionality.
For example, there are instances where trading is still allowed for a symbol even though there is a problem with data streams such as the quotes not being updated or seem to be frozen. If a broker continues to execute trades with off-market prices, it may lead to unpredictable losses and a huge gap once the price stream resumes. In such cases, the Dealing Desk plugin spots the frozen quotes and rejects trade requests for that price.
Negative Balance Protection
When a trader comes to a broker, the worst they expect to happen is to lose their deposits. However, once promotional campaigns kick in, there is an influx of bonuses in the trading account. There can be cases where the account loses all its deposited money and continues trading with a bonus (credit money). Since in most cases bonuses are distributed by third-party applications, trading platforms’ in-built functionality isn’t always enough to monitor the negative balance. Brokers around the world are using Negative Balance Protection to prevent such cases. The solution automatically tops up the account if the balance drops below zero, thereby stopping clients’ losses.
Instead of using complex analytical systems, brokers can set up their trading platforms for real-time monitoring with simple plugins. Plugins like Trade Copier or Terminal Hedger allow brokers to aggregate clients’ positions in one place through a combination of different copying modes.
Dealers and risk managers gain incredible insights and complete control over trading operations by combining executed orders from certain groups or trading accounts into one MetaTrader 4 account. Thus brokers will be able to see total exposure per symbol, overall PnL and much more data within the trading platform.
With the development of forex, CFD trading regulators started paying more attention to the provided leverage, which at some point could get as much as 1:1000, where with just 100 USD account you could trade as if you had 100,000 USD. Besides being a great client attraction tool, high leverage ultimately increased risks for traders and jeopardized the reputation of foreign exchange investments.
To prevent a “gamblification” of capital management and minimize risks of retail traders, financial authorities introduced regulatory measures aiming to cap leverage per security. Since most popular trading platforms considered leverage to be a trading account-specific value, brokers have started using Dynamic Margin and Leverage tool to expand the default functionality.
The default functionality of MetaTrader 4 allows brokers to specify one agent per trading account, which is enough for a handful of “introducing brokers” (IB) or when a company begins operations. However, as the number of IBs increases and the agent network expands, it becomes very difficult to manage and oversee agent chains. To solve this problem, products like Extended Agent Commissions are gaining popularity as they allow brokers to create agent chains and specify remuneration for each agent-tier.
With these plugins, brokers can automate risk management, streamline IB remuneration processes, and optimize dealing operations.
Request a free 2-week demo for any of the products via the contact form below.
Elite Automation Package
Our Elite Automation Package is a comprehensive solution that includes all the above-mentioned plugins and is available at a monthly subscription.
Product packages are a convenient and cost-efficient way to acquire several apps and plugins. Each package is complemented with additional development and consultancy hours that enable brokers to fine-tune chosen products or gain operational insights from leading industry experts.
Schedule an introductory call via firstname.lastname@example.org to learn more about simple yet effective solutions for MetaTrader 4.
Originally published at https://brokeree.com on June 15, 2020.