MT4/MT5 White Label Solutions

Services

MT5 White Label is software developed by MetaQuotes for Forex Brokers to help them run their Forex Brokerage Business. It’s the backbone of Forex Brokerage Business that let brokers to connect with the Forex Market spread across the world, sign up traders, set up groups for different kind of traders, set charges like spread, swap, commission, brokerage, deposit, withdrawal, trading terminal, securities, currency pairs, leverage, margin requirement, etc.

What’s in MT5 White Label & Trading Platform for Forex Brokers & Traders?
White MT4 Trading Platform was developed primarily for Forex Traders, MT5 White Label is developed keeping traders of Forex, CFDs, Stocks, Futures etc. MT5 White Label gives access of various securities markets like forex, stock exchange and Futures to Forex Brokers. Forex Market & other securities like Stocks, CFDs, and Futures are interlinked and any movement in one security may have direct or indirect impact on another securities market. Most of Forex Traders keep a track of other markets as well while doing Technical Analysis. They have established connection between different securities and several trading strategies have been developed around them.

All they needed was now to have a platform that could let them trade into different securities including Forex, CFDs, Stocks and Futures etc. MetaQuotes identified this gap and developed MT5 Manager along with Trading Platform to enable both Forex Brokers and Traders to facilitate trade into wide spectrum of above-mentioned securities. MT5 (MetaTrader5) is a complete platform that provides end-to-end solution to a Forex Brokerage business to operate efficiently. MT5 White Label has all the functions and tools that a Forex Broker may need to operate at full scale. If you take MT5 White Label (MT5 Manager) you won’t need any additional software or tools to operate a full-fledged forex brokerage. While with MT4 Platform brokers are required to get separate bridges, APIs and tools to perform additional functions, MT5 Manager comes with White Label licenses, enhanced back-end functionalities like System Admin, Back office API, Risk Management, Dealing Desk etc, in-built connectivity gateways for different exchanges, liquidity providers, well as various APIs for integration with your website, trading and post-trading systems.

Key Highlights of MT5 White Label or MT5 Manager for Forex Brokers
While MT5 White Label Solution provides flexibility to Forex Brokers to offer trading into wide spectrum of securities like Forex, Stocks, CFDs & Futures, it allows brokers to connect with exchanges, ECNs & Liquidity Providers seamlessly with in-built connectivity gateways. Traders get access to enhanced charting tools including additional timeframes, indicators along with additional orders types which are a vailable with MT4 Trading Platform. MT5 Platform gives higher flexibility to onboard and incentivize partners and affiliates with the help of DMA (Direct Market Access) & Liquidity services. Let’s discuss them in details:

Multi Asset Trading Platform
MT4 Trading Platform primarily focused on Forex Trading and related activities which made it very popular amongst the Forex Traders. But over the period of time these same forex traders found it difficult to trade into different securities like Stocks, Bonds, CFDs, and Futures etc. They had to depend on different tools for Forex and other securities trading.

MT5 addressed this issue by developing an advanced Multi Asset Trading Platform MT5 (MetaQuotes5). MT5 Trading Platform allows brokers to offer trading in forex, CFDs, Stocks, Bonds and Futures etc. This attracts those traders who are looking for Multi Asset Trading Platform to make the most of their Trading Experience and knowledge by flexibly trading into securities of their choice.

Enhanced Technical Analysis Capabilities

Charts Charts

MT5 Trading terminal comes with unlimited charts for traders to explore all the possibilities and technical analysis.

Timeframes Timeframes

MT4 Trading Terminal has 9 timeframes whereas MT5 Trading Terminal comes with 21 different timeframes that include 11 types of Minutes Charts, 7 types of hourly charts and 3 types of Daily, Weekly & Monthly Charts.

Indicators Indicators

MT4 Trading platform has 30 built-in indicators, 2000+ free custom indicators & 700+ paid indicators. MT5 Trading Platform comes with 38 indicators, 44 advanced analytical objects, 21 timeframes & unlimited no of charts for extensive technical analysis and research.

Market Depth Market Depth

One of the biggest problem Forex Traders faced with MT4 Trading Terminal was it had no Market Depth that could give insight on liquidity for a particular pair. MT5 Trading Terminal shows Market Depth. DOM (Depth of Market) module in MT5 Terminal shows bids and offers for different currency pairs and scrips at different levels depending on the volume. This makes Technical Analysis for traders much easier and reliable.

Economic Calendar Economic Calendar

Not only Forex Markets but all different stock and other securities markets world over are interrelated and have impact on each other. Forex Traders, Stock Traders & Futures Traders need to keep track of different events that may have impact on securities they trade into. MT4 Trading Terminal does not have an in-built Economic Calendar. MetaQuotes has sorted this problem by providing an in-built Economic Calendar with MT5 Trading Platform that lists and shows all important events that may impact different markets. Now Traders need not keep a track of these events separately and they are available readily on trading terminal itself.


Hedging
MT4 Trading Platform doesn’t allow hedging which is one of the most popular tool for pro traders to manage their Risk against adverse move in scrip they hold positions. This was a big drawback for many traders and they had to hedge their positions externally.

MT5 Trading Terminal addressed the concern of traders by allowing them to hedge their positions. Hedging is simply the ability to open multiple positions in same pair/scrip/instrument without affecting the other open positions. One can be long and short both in same security at the same time using HEDGING as a tool. MT5 Trading Platform’s flexibility with Hedging is a boon for traders.

Netting
Netting is another popular tool for forex and stock traders. Netting means having only one open position in any given currency pair/stock/symbol/instrument at any given time. Every time a trader takes a new position in same symbol, it nets off against the existing position. Following 4 scenarios may prevail in case of such Netting:

Another drawback with MT4 Trading Platform is that it doesn’t allow Netting. Traders kept sending feedbacks and complaining is about the facility of Netting. Finally MetaQuotes understood the challenge and integrated Netting in its MT5 Trading Terminal.

Orders Types
Orders Types
  • Market Orders
  • Limit Orders
    • Buy Limit
    • Buy Stop
    • Sell Limit
    • Sell Stop
    • Buy Stop Limit
    • Sell Stop Limit

Order Execution Type

Exchange Execution Exchange Execution

When orders are directly sent to external exchange for best match it’s called Exchange Execution. Orders are usually executed at best prevailing price at the external trading exchange.

Request Execution Request Execution

This is primarily for Market Orders wherein Brokers are requested for the prices against the Market Order. As soon as broker sends the quotes, orders can be executed or rejected.

Instant Order Execution Instant Order Execution

Order is sent to the broker; it gets executed instantly if broker accepts the price & quantity. If broker doesn’t want to fill the order, “Requote” takes place wherein Broker gives an offer with price and quantity. If trader agrees to it, order is filled.

Market Execution Market Execution

In rest of the modes, usually a discussion takes place between trader and broker but in Market Execution, Broker doesn’t speak with traders, it can simply take or reject the order without any discussion with trader.


Order States
After an order is formed and sent to the trade server, it may pass the following stages:

  • Started – The broker has checked the correctness and validity of an order but has not accepted it yet.
  • Placed – Order is validated and accepted by a Dealer
  • Partially filled – When opposite side of trade is not available in exact quantity and order is filled partially
  • Filled – When the order is filled completely
  • Canceled – When the trader/client cancels the order
  • Rejected – When an order is rejected by the Dealer
  • Expired – When an order gets cancelled due to its expiration

Order Fill Mechanism
MT4 Matching Engine has just on Order Fill Mechanism which is Fill Or Fill. Its very limited in nature and doesn’t give flexibility to forex brokers and traders. MT5 Trading Platform’s matching engine fixed this problem by enabling ICO (Immediate or Cancel and Return orders fill along with Fill or Kill. Immediate or Cancel (IOC) is a very popular Order Fill protocol in Stock Exchanges.

Brokers have the flexibility to set the Order Fill Mechanism that suits them and their traders. A trade can indicate additional conditions in the "Fill Policy" field of the order placing window:

Immediate or Cancel Immediate or Cancel

IOC is one of the most popular order fill protocol on stock exchanges. When a Trader places IOC Order, s/he understands that IOC order will filled fully or partially depending on the opposite side of available orders. In case of partial fill, rest of the order will get cancelled immediately. MT5 Servers are capable to match and fill/cancel the order automatically.

Fill or Kill Fill or Kill

Fill or Kill is the usual order execution method wherein an order can only filled fully not partial fill. When the order hits the market, if opposite side of order is available in required volume, order gets filled. The order can be filled by more than one orders too if all orders volume add up to the actual orders volume.

Return Fill
Return Fill

Return Order Fill protocol takes the IOC (Immediate or Cancel) order fill protocol one step ahead. Return Fill policy is applicable for:

Market Order (Buy and Sell)

Limit and Stop Limit Orders

If the order gets filled fully, good else it gets filled partially but rest of the order with remaining volume remains open and available to get filled. It gets filled as soon as best match is available. Return policy for market orders, works only in the Exchange Execution mode, while for limit and stop limit orders, and return policy is applied in Market Execution and Exchange Execution modes.

Enhanced Back-End
MT5 Trading Terminal & MT5 Manager have been developed by keeping Forex & Stock Brokers to enable them in operating a full-fledged brokerage business with greater flexibility. It has numerous sets of configurations, parameters, functions and tools that can be deployed to create a brokerage business of any scale. MT5 White Label is visionary forex solution that will change how you operate your brokerage business. Here is some key features of MT5 White Label for Brokers

MT5 White Label Solutions - Enhanced Back-End

Create Role Based Accounts//Profiles/Managers
MT5 White Label lets brokers create several Managers based on role and authority they are going to perform like:

  • Administrators
  • Accountants
  • Dealers
  • Risk managers, etc.

Trade & Order Controls
The core of every Forex & Stock Trading Brokerage is its Trade & Order Facilities and Controls. Traders always look for more and brokers could provide them based of trader’s profile. This opens additional source of revenue for them as well. MT5 White Label provides various Trade & Order Controls like:

  • Margin Requirements
  • Contract terms
  • Credit limits
  • Swaps
  • Trade sessions
  • Spreads
  • Markups
  • Commissions

Risk Management
Risk Management is one of the key concern of any forex and stock brokers. MT5 Manager has been developed keeping this concern in focus. MT5 White Label has several in-built preventive mechanisms to control and reduce risks. There are several tools for automatic monitoring of:

  • Technological
  • Financial
  • Margin for both Credit & Limit
  • Operational risks

Different brokers have different business models and they offer various securities or asset classes to their traders for trading. This calls for separate risk management and control measures. MT5 Manager has different tools to address these dynamic risk management requirement of brokers.

Custom Configurations & Settings
Forex Market is ever evolving which poses new operating and regulatory challenges. Not only this but also the dealing desk needs to be robust and dynamic. MT5 White Label comes provides the flexibility to configure and customize settings to accommodate various operational, statutory and structural requirements of brokers dealing desk. The MT5 Manager is developed in such a way to provide for access permissions as per the levels like:

  • Senior Dealers
  • Dealers
  • Risk Managers etc.

MT5 Manager has provision to accommodate multi-dealer operations based on client groups and market segments.
It also gives brokers full operative control of all open positions, orders, incoming requests and more.

Flexible Corporate Actions
A decent sized broker business need to do some corporate actions on regular intervals like bulk payments to clients, payments to shareholders etc. MT5 White Label has tools to perform various Corporate Actions like:

  • Bulk payments to clients as per their current positions. It is used for calculating and paying bonuses and dividends to shareholders.
  • Splitting of tick and bar history and the reversal operation of consolidation (or reverse split).

Easy Connectivity to Exchanges and ECN
Although MT4 Trading Terminal was developed keeping forex traders and brokers in mind, it did not have several features like provision to integrate it with larger exchanges and liquidity providers which are essentials for smooth functioning of brokerage business. They had to buy separate bridges and APIs to integrate with LPs and Market Makers.

MT5 Platform addresses these issues by providing in-built gateway to integrate platform with Liquidity Providers and connect with large global financial exchanges. MT5 comes with an integrated gateway solutions that helps brokers to seamlessly connect with STPs, other MT5 Brokers and access wider open market exchanges and platforms without buying any additional bridge or gateway. What a relief for brokers!

Enhanced Performance and Security
MT5 White Label provides flexibility to use distributed architecture to perform different functions of different servers. MT5 Manager allows Brokers to deploy different functions on different servers within the platform. This results in:

Speedy Performance
When different functions run on different servers speed improves and thereby the overall performance. One server may or may not uphold the load during spiked trading activities but when they are on different servers, the load gets distributed and provides seamless trading experience to traders.

Enhanced Security

  • When different servers are used, hackers find it difficult to hack your system. All critical functions can be hidden behind the layers of access points.
  • Apart from this MT5 Trading Platform come with enhanced Data Security measures like use of high end encryption for data exchange between system components.
  • A built-in authentication system ensures protection to all trade accounts.
  • The entire system database is secured using encryption, backup and recovery options.