Not exactly. Vantage FX is DMA/STP.

please people stop trying this no name companies

if they are not an ecn broker do not use them, simply saying NDD or ECN style is no good

in addition, many companies give a hard time taking money out, do your homework, id say most people who lose money in forex where never given a fair chance

IT would be very helpful if you stated whether or not NDD STP brokers charge a commission or not (so just add a little to the spread for their profit - if no commission)

Hi guys,

I want to share one very detailed answer about liquidity and bridges from TheCollectiveFx, which I think might be useful for traders like me who likes to ask many questions.

My question to TheCollectiveFx was:
"How does the process works when you have 1 liquidity provider, e.g. do you send all orders to that provider and then
the provider interacts with 25 banking participants? Is it like Integral? I'm trying to compare it to brokers who simply have, say, 6 banks in the liquidity system. While you have 1. Hope you can understand the general point."

The reply from TheCollectiveFx:
"In the MT4 world brokers connect to liquidity through 'Bridges', the bridge acts as a conduit from MT4 to a single bank. As such that data stream is then pumped into a symbol that appears in MT4, in our case the symbol is _fx. In order to have multiple banks then that would require multiple bridges and that would result in multiple symbol sets e.g. _fx1, _fx2, _fx3 etc. There are some bridges that will connect to multiple banks directly and feed a single symbol set but truthfully those are very few and far between because the technology for routing the trades does not work.

If you see a broker tell you that they have 6 or 10 or 25 banks that they trade with then that is more than likely an untruth, what they really mean is they connect to ONE feed that has multiple contributors. This is exactly how Integral, Hotspot, Currenex etc all work. These connect to multiple banks and then feed that as a Best Bid Best Ask quote through the data feed as a quote. Any orders get routed to the bank that made the best quote. However, in order to trade with any of these or their equivalents then a single bank or prime broker needs to buffer the trades. The bank or prime allow multiple simultaneous lines of credit at each of the contributing banks and without them a separate deposit amount would have to be lodged with each bank. The prime bank does not care where a trade ends up, its job is to route trades efficiently and maintain margin and capital requirements.

In short, I doubt there are any true MT4 brokers with multiple direct bank feeds, that is more mis direction than anything else. They may certainly have a single connection to a single prime bank who then connects to many other banks, but there won't ever be a direct connection from broker to each and every bank.

Consider that each brokers feed is a composite feed from a single prime bank connected to multiple providers.

Our data feed is exactly as above, we have a single bank connection who then connects us to multiple other banks. Unfortunately in this MT4 world too many people make too many misleading claims.

At last count I think we had 27 contributing banks to our composite feed, although in reality there are really only about 12 that matter.

I hope the answer isn't too complex or misleading, but in short consider that unless the broker is giving you multiple unique symbol sets to trade then their feed is a composite feed too. If the one feed goes down then all go down, yet if they were truly connected to multiple banks directly then if one failed then all that would happen is that spreads would widen, yet the feed would survive.

With a single liquidity provider such as ours then ALL orders are routed to our bank who have quoted us the Best Bid Best Ask from all of the contributing banks that they deal with. Any order is then routed to the ultimate quoting bank for filling. That may actually be our prime bank as they are a market participant too, but only if they are the Best Bid Best Ask at the time. The order is then filled and routed back to the prime bank who routes it back to us. Your trade consumes margin at our prime bank and in turn their account consumes margin at the ultimate quoting bank. If you were to then close your order that order is also executed at the Best Bid Best Ask price which may not be the same bank that took the first part of your order. You don't care as your order is closed, we don't care because our prime bank has taken care of that for us. Our prime doesn't care because they too are flat by merit of having two positions of equal and opposite size at two of their contributors. The prime bank acts in an aggregating manner and settles their accounts with each of their contributing banks on a daily basis.

Now you can see why my statement earlier that a single bridge that has multiple independent bank feeds is so hard to execute. The margin has to be dealt with so that multiple deposits aren't necessary and then the aggregation has to be dealt with. You may be flat but the broker could have two positions open. Very very tough to execute successfully and thus why it doesn't truly exist in the MT4 world.

If I've confused the matter then I apologise."

Gary.

Thanks Gary, it's the clearest and most detailed answer I've ever received!
Cheers,
Thomas

gomarket and axitrader => STP+MM

Tryer

Which is the better,instant execution or market execution?