Insight: The long-established FX brokers in the Asia-Pacific region are gradually pulling out of MetaTrader

Do you want to be subject to a fully closed system that dictates who will execute trades, or do you want to have unrestricted access to derivatives exchanges and global markets upon entering the multi-asset space and thus dominate your own destiny in a world of massively powerful, experienced Dealer?

Japan led the way in the middle of the last decade, with the last brokers offering the MetaTrader platform alongside their own to domestic retailers ceasing to use MetaTrader.

Since then, the world’s largest foreign exchange market by trading volume has been closely linked to Japanese companies that have their own trading infrastructure, many of which have monthly volumes in excess of $ 1 trillion per company.

This is simply because in Japan the majority of traders are self-governing and trade their own accounts. This is in complete contrast to the dynamics in other parts of the world, and particularly in other parts of the key region in the Asia-Pacific region.

Perhaps the main reason that MetaTrader, a platform older than 16 years old, is still widely used by retail brokers is because clients can easily switch from one broker (or white label from MetaQuotes) to another based on their skill Compatibility with trading robots, often known as Expert Advisors (EAs), widely used in China and Southeast Asia, often in conjunction with managed accounts.

Trading with multiple accounts via the MAM system from MetaTrader with a specially developed EA is therefore a revenue generator for many white labels and B-book brokers, where the introductory commission is split between the broker and the importer.

Hence, the whole structure represents an affiliate-style product very similar to the giant multi-level marketing in China, but frowned upon in western countries and in some cases illegal.

In order to be able to consider every company in the industry as a real financial services and capital market participant, this model must certainly work.

An obvious indication of this need was the Taiwan Futures Exchange’s January report this year that it had hit a new record volume of 341,393,346 contracts in 2020, an increase of 30.9% over 2019. Average daily volume (ADV) for the year as a whole also reached a record level with 1,393,442 contracts.

This result is yet another indicator that the retail sector, particularly in Southeast Asia, which is an epicenter of high volume market activity, largely operated by individual traders on a part-time basis and through the introduction of brokers and money managers, is very heavily involved in a multi-market – Asset basis with exchange traded futures and stocks in the heart of the trading world.

It is therefore clear that the multi-asset trading path for OTC derivative brokers in retail is a long overdue natural evolution if they want to attract a new and large customer base with a longer lifespan and a diversified range of products.

Therefore, brokers in the FX and CFD industry should consider leveraging the multi-asset platform capability to break into the increasingly complex and demanding region of the Asia-Pacific region.

Let’s face it, this is where the majority of retailers live and are viewed as a bread and butter business by many forex companies.

FinanceFeeds had a detailed interview today with a product manager at a financial institution in Singapore on the matter. The company is much more than a broker-dealer offering access to global markets and professional services.

“Our business extends worldwide. We have offices in Hong Kong, Malaysia, Indonesia and Thailand, as well as offices in China, the UK and the US, ”he said.

« The products and services offered focus on trading securities and OTC derivatives. We also offer capital market services, including listing and corporate financing, » said the Singaporean brokerage manager.

“We use the TraderEvolution Global platform for OTC derivatives, namely CFDs and FX.” “We also have MetaTrader, but we saw an important need to be able to introduce a multi-asset platform that was much more flexible and scalable. That’s why we integrated TraderEvolution Global, « he explained.

“The main reason we wanted to use TraderEvolution Global was to offer a transparent direct processing (STP) business model. Most of the CFDs and stocks we work with end up going straight to the liquidity provider and live market. « 

“This particular platform has a number of features related to listed derivatives. Because there are listed derivatives, there are several underlying products for listed instruments. So this makes sense for us in terms of scalability. We cover listed derivatives in global markets. Therefore, it is vital to be able to execute on Asian and American exchanges through an integrated solution. « 

“We went live in 2020 and gained a significant number of customers. We are seeing a global standardization of regulations, such as the recent tightening of leverage on CFDs products by ASIC, which is putting pressure on OTC brokers to expand their product range and not just offer Spot FX via a standard platform, ”he said

There is now more information around the world through different media channels on different types of business models, such as what a B-Book is and what type of brokers there are. This information is readily available to retailers today. In England, for example, the FCA requires the percentage of customers losing money to be published so that more transparency is available not only about market information but also about regulators worldwide.

« Therefore, using a standard affiliate-style spot platform is not conducive to growth in many regions that are important for the capital markets industry. » « The important thing is that we can offer the customer trade ideas and analysis, » drove the Singaporean executive continues.

Standard platform providers have already taken a step in this direction, as they now have a fully accessible multi-asset solution for retail brokers who can trade spot OTC derivatives on the same platform as listed multi-asset exchanges. Enables futures and stocks.

Not only does this increase the potential broker base as it gives access to stock and futures traders on exchanges, many of which are based in prime regions like the US, Singapore, Hong Kong, Australia, and Switzerland, but it also generates one high customer base Sustainable environment for brokers in which long-term traders operate with less leverage and larger capital margins, bringing them into the portfolio owner’s realm rather than the short-term CPA / lead conversion business.

Quite simply, it is high time the entire FX broker and OTC electronic retail business shifted to multiple assets. By this we properly mean multiple assets that allow connectivity from derivatives exchanges and access to futures, stocks, and stocks in Chicago and New York exchanges on the same platform as Spot FX – namely MetaTrader 5.

The solution developed by Markets Direct works via a B2B integration with the CQG API to stream tradable forex, US stocks and futures prices via MT5, CQG and NetDania platforms.

So it is clear that even MetaQuotes recognizes that this is the direction to be taken, but the question remains: do you want to be subject to a fully closed system that dictates who does trades, or do you want full access to derivatives exchanges and global markets, if Are you entering the multi-asset field and therefore dominating your own destiny in a world of experienced traders with massively high performance?

Even Robinhood has proven to be a marketing triumph over substance, and as a FX industry executive told FinanceFeeds today, “Robinhood is dead. Let’s get back to value instead of taking it from clients. « 

Now that we are witnessing a massive deciphering of the stock / B-book model, now is the time to think carefully about the future.

Will GBP USD go up or down?

Will GBP USD go up or down?

GBP / USD mid-day outlook GBP / USD remains in consolidation at 1.3745 and intraday bias remains neutral. Another move higher is expected as long as 1.3518 support continues. A break of 1.3745 will turn the trend upward and extend the rise from 1.1409 to 61.8% from 1.1409 to 1.3482 from 1.2675 to 1.3956.

Why is GBP so strong?

The exchange rate for the pound is determined by supply and demand. Just as the price of a train ride is higher at peak times when more people have to travel, the pound gets stronger when people want to buy more. Investors around the world trade huge amounts of foreign currency every day.

Is $ 100 a lot of money?

$ 100 for tickets to a ball game seems like a lot. Bottom line, $ 100 is a remarkable amount of money to spend, but not enough to really miss out on unless you are poor.

Why is GBP so weak?

Let’s examine the 5 most likely reasons why the pound sterling will stay weak at its current forecast: The coronavirus pandemic is worsening in the UK and increasing pressure on public health systems. A prolonged global recession could mean less trade and demand for UK imports, as well as a weaker local economy.

Which currency pair is currently trending?

Which currency pair is currently trending?

Currency pair % Change in the last 2 weeks % Change in the last 3 months
GBP / USD 0.65 0.56
USD / JPY -1.47 0.21
AUD / USD -0.64 -1.25
USD / CAD -0.29 1.14

How do you know whether a market is trending or sufficient?

One way to tell if the market is trending is to use the Average Directional Index indicator, or ADX for short. Developed by J. Welles Wilder, this indicator uses values ​​in the range 0 to 100 to determine whether price is moving strongly in one direction; H. In trend or just in range.

What is the safest currency in the world?

Yen, Euro and US dollar banknotes of various denominations. The Japanese yen and Swiss franc remain relatively safe bets, Morgan Stanley said on Tuesday, but the investment bank chose the U.S. dollar as the best safe currency in what remains of turbulent 2020.

What are the best trend indicators?

From across the technical analysis toolkit, these are the top 4 indicators that are our favorites for trend trading.

  • Moving averages. Moving averages are the be-all and end-all of the trend trader. …
  • Moving Average Convergence Divergence (MACD) …
  • Relative Strength Index (RSI) …
  • On Balance Volume (OBV)

Is FXStreet Reliable?

Is FXStreet Reliable?

As such a reliable news source, I also like their forex analysis. Customer service is very responsive. I can only recommend this website.

Where do forex traders get their news from?

An important and useful feature for Forex traders is the news and analytics reports available on the DailyFX homepage. Other good forex news sites worth mentioning include:

  • Forex section.
  • Dailyforex Forex News.
  • Forex sections of major business news portals such as CNBC, CNN Money, USA Today and US News.

Can the Forex Market Crash?

The short answer to this question is yes and no. Forex markets cannot crash completely, but certain currencies can crash at any time. Crashes in the forex markets differ significantly from those in the stock markets in that forex crashes usually involve a specific currency.

Is the EUR USD a buy or a sell?

EUR USD. In this example, the euro is the base currency and therefore the basis for buying / selling. If you think the US economy will continue to weaken, which is bad for the US dollar, you would place an order to buy EUR / USD.

Is Now a Good Time to Buy US Dollars?

The pound-US dollar exchange rate rose this week. Now is the best time to buy US dollars in the past two months as it looks like US interest rates may not rise as quickly as markets previously expected.

Why is the US dollar falling?

The dollar fell against a basket of benchmark currencies on Friday to its lowest level in more than two months as the number of votes for the controversial US election dragged on and investors forecast further losses for the currency.

When should I buy US dollars in Canada?

Try to stay away from the first and last business days within a month for the best value for money when converting US dollars to Canadian dollars. When averaging the dollar cost, take some time to plan several evenly averaged conversions that you will complete in a week.

Insight: The long-established FX brokers in the Asia-Pacific region are gradually pulling out of MetaTrader
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