- How to open VantageFX MT4 and MT5 account to trade Forex?
- VantageFX MT4 and MT5 are the base platforms for investment
- VantageFX ECN Forex trading on MT4 and MT5
- Merits of trading with VantageFX’s ECN accounts
- FAQs of ECN Forex on VantageFX MT4 and MT5
- Does VantageFX allow all trading styles including scalping, news trading and high frequency?
- What type of execution does VantageFX offer? Dealing Desk or No Dealing Desk? Do they trade against your clients?
- Who’s quoting the price rates on MT4 and MT5? The broker, a single bank, or multiple providers?
- Can I place orders within the spread?
- What is the difference between Makers and Takers?
- Who’s on the other side of my trades on VantageFX MT4 and MT5?
- What is the average slippage between the price I requested and my actual fill price? What is VantageFX’s average slippage or spread during economic news events?
- Are my stops guaranteed on VantageFX MT4 and MT5?
- Can I see the depth of market on VantageFX MT4 and MT5?
- What’s a Forex ECN?
- Will large order incur in partial fills on VantageFX MT4 and MT5?
- I am a news trader, is it fine on VantageFX MT4 and MT5?
- Where are VantageFX’s servers located?
How to open VantageFX MT4 and MT5 account to trade Forex?
Follow the simple steps below to open a Forex trading account with VantageFX.
- Register for VantageFX Online (Choose an account type and submit your application)
- Receive Login Credentials for VantageFX’s Client Portal and your Trading Account
- Login to VantageFX’s Client Portal from VantageFX Official Website to make a deposit
- Login to VantageFX MT4 or MT5 (You must download the platforms from VantageFX Official Website)
- Start trading Forex and CFDs (180+ instruments across all asset classes)
The account opening with VantageFX is absolutely free.
See the page here for the FAQs regarding to VantageFX’s account opening and trading.
For more information about VantageFX’s Islamic Swap Free account, visit the page here.
Do you have any questions? Visit VantageFX Official Website and contact their multilingual support team today.
VantageFX MT4 and MT5 are the base platforms for investment
VantageFX MT4 and MT5 are Multilateral Trading platform which in essence is like a traditional Exchange bringing buyers and sellers together.
Your market orders are matched with another retail traders or one of the liquidity provider.
Certain limit orders you place may also add liquidity and can be taken by other traders or the liquidity providers.
On VantageFX MT4 and MT5, you can place your orders within the spread and if you get filled you will be charged a commission fee.
VantageFX MT4 and MT5 act as an exchange and it clears CFDs through VantageFX, while spot FX and Metals trading are carried out according to a bi-lateral clearing.
VantageFX MT4 and MT5 offer no settlement risk once orders are matched and novated to a central counterparty.
When you place an order on VantageFX MT4 and MT5, it will be visible to all market participants.
As VantageFX doesn’t operate a dealing desk, your orders will be filled according to the transparent order book based on the available liquidity.
Opposed to traditional Contracts for Difference, VantageFX MT4 and MT5 differentiate because they are centrally cleared.
The advantage of turning these traditionally OTC products into Exchange traded and centrally cleared, provides traders with greater transparency.
For the comparison of VantageFX’s all MT4 and MT5 account types, visit the page here.
VantageFX ECN Forex trading on MT4 and MT5
VantageFX allows you to receive real-time streaming quotes from multiple trading ECNs delivered by different broker counterparts simultaneously on one piece of software.
VantageFX’s trading Client features a Direct API Access, which means no bridge or middle-ware to connect to the ECNs, thus potentially eliminating layers of latency.
On selected Data Feeds of ECN, VantageFX allows the traders to act both as liquidity Makers and liquidity Takers.
Making liquidity means that certain limit orders will be placed in the book and visible to all market participants on that data feed.
This may potentially result in more liquidity visible in the book and more competitive pricing which may further tighten spreads.
Based on this model, on the other side of your fills there may be another trader like you.
For more information about VantageFX’s ECN Forex trading, please visit VantageFX Official Website.
Merits of trading with VantageFX’s ECN accounts
VantageFX MT4 and MT5 offers the first ECN of ECNs by using ECN local aggregator.
You can build Complex Spreads and Correlation strategies on VantageFX MT4 and MT5. The multi-connectivity allows you to build synthetic pairs and complex tradable spreads.
VantageFX MT4 and MT5 offer you the tools to facilitate your choice, so you can chart hourly, daily and monthly spreads on all data feeds.
Another advantage is the conditions at a Glance on VantageFX MT4 and MT5.
By offering different ECN feeds, VantageFX is able to satisfy the demand of most trading styles.
1. VantageFX offers the real ECN Forex
Many competitors of ours have generated huge profits by systematically trading against their clients by running a dealing desk, and taking advantage of the little or no knowledge on this matter by the retail Forex client.
Today, some of these brokers claim they have become “the good guys” offering and promoting a “No Dealing Desk” or ECNs, simply because their spreads are now floating.
The same ones who have built their fortune trading against their own clients’ losses, now promote the purity of their execution practices and ironically badmouth their competitors to clean their record.
VantageFX connects exclusively to well known ECNs, where prices are traditionally quoted by multiple banks or liquidity providers and use a no dealing desk model.
You can see a depth of market and place orders within the spreads in a more transparent trading environment.
2. No Conflict of Interest with ECN Forex
VantageFX offers Direct API Access to multiple trading ECNs portals.
VantageFX’s profits derives solely by part of the commissions they charge your trading account to execute trades on such ECNs.
This is VantageFX’s business model.
VantageFX does not run a dealing desk (they are not even allowed due to their registration status), and VantageFX doesn’t profit from your losses.
The spreads you see are the same VantageFX receives from the clearing broker counterpart.
Because VantageFX doesn’t apply any spread mark-ups on some account types, you will receive the same execution and tight spreads.
VantageFX originates from the Futures Trading business model and culture and VantageFX strives to promote a more fair and transparent Forex trading model.
While many competitors of their invested in technology to increase their own profits, VantageFX developed an advanced trading platform designed around your unique needs, where they deliver some of the most attractive products they found in the financial industry.
3. VantageFX any types of trading strategies
On selected data feeds, VantageFX offers its customers the opportunity to act either as liquidity “Takers” and liquidity “Makers”.
As opposed to traditional models, where the counterpart of your trades is always your broker or a liquidity provider, some limit order are posted in the trading book both when made by a liquidity provider or by another trader like you.
Consequently, orders may be filled by other traders and the broker will only match the trades.
Aside from the increased transparency of this model, allowing aggressive orders may increase liquidity and potentially decrease volatility.
VantageFX currently offers this setup through MT4 and MT5 platforms.
4. ECN integrates Multiple Price Feeds into one
While traditional brokers offer you access to their trading feed without much of a choice, VantageFX’s business model and their technology allows them to offer you a selected variety of competitive trading feeds and conditions.
By being capable of offering multiple trading feeds into the same software, you can receive and trade on multiple quotes for the same trading pair.
Delivered exclusively on VantageFX MT4 and MT5, the ECN technology allows high net worth and entities to aggregate multiple Forex ECN feeds delivered by the same clearing counterpart.
VantageFX’s ECN aggregates the quotes from the liquidity providers of each trading portal, delivering tight spreads which might also be inverted.
As the aggregation is unfiltered and performed on the client side, there are no algorithms on VantageFX’s end preventing the spreads to reach negative values.
A centralized clearing, trading on a credit basis and the power of this aggregator, give the opportunity to institutional traders, or high net worth individuals, to place orders on different ECN while benefiting from a cumulative net account position.
FAQs of ECN Forex on VantageFX MT4 and MT5
Before starting your online Forex trading with VantageFX, you may have some questions that you want the answers to.
Here are some frequently asked questions about VantageFX’s service.
For more inquiries, you may Contact VantageFX Support Team.
1. Does VantageFX allow all trading styles including scalping, news trading and high frequency?
VantageFX doesn’t impose any trading restriction and actually they welcome any trading style.
VantageFX offers multiple trading Feeds to satisfy the needs of some of the most sophisticates traders.
However, among other factors, please keep in mind that volatility and news events may cause spreads to widen suddenly which may increase the chances of slippage and/or getting filled at a price worse than desired.
2. What type of execution does VantageFX offer? Dealing Desk or No Dealing Desk? Do they trade against your clients?
VantageFX is not a Dealing Desk and, because of the regulation governing their current registration status, VantageFX doesn’t operate a Dealing Desk.
Instead, VantageFX MT4 and MT5 feature unbridged access to multiple ECN via a direct multi-API connectivity, and ECN aggregation with VantageFX’s proprietary ECN Technology.
3. Who’s quoting the price rates on MT4 and MT5? The broker, a single bank, or multiple providers?
In the ECN model, liquidity is posted and prices are quoted by banks, hedge funds, brokers, other financial institutions or other ECNs, which are acting as liquidity providers for the circuit.
On selected ECN, traders are also enabled to act as liquidity makers.
So you, or other traders like you, may be creating additional liquidity by placing limit orders.
This means that while in a regular ECN the counterpart of your trades is always a liquidity provider in addition to the regular liquidity providers, your trade may be hit by other traders.
The clearing counterpart of your trades is always your broker (as it maintains the prime relationship with the liquidity providers), while VantageFX MT4 and MT5, through its direct ECN connectivity via API, provides live, executable streaming prices from the liquidity providers.
Consequently, the Market Depth window (where the depth of market is displayed) shows the liquidity providers competeting for the bid and ask prices.
4. Can I place orders within the spread?
Yes, of course you can place orders within the spread, and there isn’t either any minimum distance limitation for stops loss and profit target orders.
You can place orders anywhere in the market according to the appropriate order type.
Generally your order will be placed in the book until a liquidity provider will fill it, while on selected feeds, your trade might be filled by either a liquidity provider or by another trader like you.
5. What is the difference between Makers and Takers?
In the ECN environment, Makers are generally the liquidity providers, because they provide or make liquidity for the ECN.
On the other hand, Takers are instead the clients whom, by placing their trades, take the liquidity from the ECN.
Please note that on selected ECN, VantageFX allows traders to act both as makers and takers.
6. Who’s on the other side of my trades on VantageFX MT4 and MT5?
In a normal trading environment, a retail trader will be always acting as a liquidity taker.
This means that the counterpart of your trades will always be a liquidity provider or maker, thus you’re a liquidity taker.
On selected ECN, instead you may also be acting also as liquidity maker, so when place certain limit orders these will be visible to all market participants, thus the counterpart of your trades might be either a liquidity provider or another trader.
In such case you may also be acting also as a price maker.
7. What is the average slippage between the price I requested and my actual fill price? What is VantageFX’s average slippage or spread during economic news events?
Trading on ECN generally provides increased transparency, as there is no dealing desk fabricating the prices.
Consequently, slippage, spreads or other execution outcomes, like split fills, partial fills, etc., cannot be predicted as they depend on real time market conditions.
By trading in a competitive bid/ask environment with multiple liquidity providers, it’s possible that during economic news releases, or other instances of greater volatility, liquidity providers (and traders) may decide to pull off their orders from the market.
Therefore, on ECN because prices are not quoted by a single dealer, but they are the natural result of the competitive bid/ask orders placed by the liquidity provider participants, your order will be filled at the first available price, which may also be several pips away from your desired price (normally a worse price) during such market conditions.
8. Are my stops guaranteed on VantageFX MT4 and MT5?
Stop orders fill prices are not guaranteed.
A stop order by nature is a kind of order that when triggered by the price it turns into a market order and filled at the first available price.
While stops orders in most cases are held at the ECN trading servers (unless not supported by the API and therefore held locally on your machine until triggered), during high volatility or low liquidity your fill price may differ sensibly from the original stop price.
9. Can I see the depth of market on VantageFX MT4 and MT5?
Yes, you will see the depth of market (or Level 2) for each ECN VantageFX provides access to.
You will be able to see the various bids and ask levels update in real-time along with the quantity available posted by the liquidity providers.
10. What’s a Forex ECN?
Forex ECN stands for Electronic Communication Network.
Here multiple liquidity providers such as banks, hedgefunds, brokers, other financial institutions or other ECNs post bid and ask prices and quantities real time, therefore depending on the market conditions spreads and liquidity will vary.
In an ECN, orders are sent directly to the circuit and usually they are not processed by a dealing desk.
11. Will large order incur in partial fills on VantageFX MT4 and MT5?
Normally, partial and split fills are determined by market liquidity.
If the best bid, or best ask, price is showing a volume size lower than your order quantity, chances are that your order will be partially filled, or it will result in a split fill.
For certain limit orders you may be able to cancel the balance of a partially filled order.
In split fills your order is processed in multiple instances according to market conditions; each time the order is not entirely filled, the remainder will be processed at the next available price until volume is completed.
Order details, including quantity filled and price, are available in the trading history of MT4 and MT5.
12. I am a news trader, is it fine on VantageFX MT4 and MT5?
When you trade on an ECN you’re generally not subject to the trading restrictions often imposed by other retail FX brokers.
In fact, there is no particular trading style limitation with VantageFX MT4 and MT5.
VantageFX welcomes news, scalpers, and high volume traders.
If you wish you may discuss your particular needs with one of VantageFX’s support teams.
13. Where are VantageFX’s servers located?
Because VantageFX MT4 and MT5 platforms offer a direct FIX API connection to popular Forex ECNs (and VantageFX doesn’t use any middle-ware or bridged connection), the location of the execution servers will depend on the technology behind each Data Feed.
VantageFX’s live trading servers are now located in the major financial hubs of both London and New York.