The process of trading in various financial instruments is made possible by the complex infrastructure of interconnected systems that makes up electronic trading, one of the most popular methods of capital growth currently. These systems operate using mathematical algorithms to provide fast convergence of orders. A liquidity bridge, of which MT4 is the most well-known, serves as the connecting link in this infrastructure and connects the platform and liquidity providers. MT4 bridge providers supply this technology.
Describing the Liquidity Bridge.
The liquidity bridge serves as a crucial link between the trading server of the MT4/5 platforms and the liquidity provider (LP). Special bridge Forex vendors supply this software.
- The liquidity bridge’s duties include requesting quotations (prices) from the liquidity provider.
- Additionally, the liquidity bridge often processes part of the received prices.
- After filtering and maybe transforming the quotations, it may transmit them to the trading server.
- Additionally, the trading server sends trade requests to the liquidity bridge.
- After waiting for a response about the execution of the trade request, the bridge either executes the received trade request internally or sends it to the liquidity provider before sending the outcome to the trade server.
It turns out that the liquidity bridge is a part that integrates the behavior of the liquidity provider and trading server into one system while concealing the specifics of each from the other. Therefore, the name “bridge.” The ability to store reports on trade transactions is only one example of the numerous parameters that may be handled through the user interface of the liquidity bridge.
In general, the system appears to be a collection of computer methods that are applied to a certain model. Liquidity bridges come in several varieties, and they may be added as plugins to a trading server. But generally speaking, such a system does not scale well in the future, for instance when working with several trading servers.
When Choosing an MT4 Bridge, Consider These 5 Factors
There are a few considerations you should make in order to select the best MT4 liquidity bridge. The key ones are as follows.
- Pricing
To avoid missing any potential future hidden fees, you should make sure to spend your time reviewing price plans and contract drafts. Spend some time getting to know the trade volume and setup costs.Make sure you inquire about any mandatory monthly fees since there may be one.Find out how much it will cost to connect a new exchange or liquidity provider.Make sure to take note of any product bundles, unique promotions, and other deals that could be offered.
- Liquidity providers with Supported Quantity
Businesses shouldn’t be confined to a tool that prevents them from expanding or refining their business strategies. Consider the potential that you could one day wish to offer your clients some unusual crypto pairings. As a result, you should make sure that your bridging solution not only gives you access to liquidity providers that are now willing to work with you on favorable terms, but also gives you the option to create additional connections in the future.
Technical Help
Bridges are a crucial component of your trading infrastructure, thus you must constantly communicate with your MT4 bridge provider. You may learn more about MT4 bridge providers‘ capabilities by reading evaluations posted on their own websites or on websites owned by third parties. Additionally, you might want to Google the business and find out from its current clientele whether it has a dedicated team of specialists offering help. Are such personnel able to clearly respond to the inquiries from their clientele within a constrained time frame? Is there a hotline that you may call in case of an emergency?
The MT4 Bridge’s Efficiency and Speed
A market participant aims to deliver data feeds and trade execution to its customers as quickly as feasible. What are the best ways to measure it and check it? Ask for a trial time to test the solution on your own, then see how it performs. It won’t take more than a few days to conduct all the tests. The quickest way to determine the precise rate of order execution is to utilize a timer.
Leading Five Liquidity Bridge Providers
Although there are many other liquidity bridge companies available, let’s focus on the most well-known ones.
- Devexperts
Devexperts creates software solutions for financial, brokerage, and exchange automation. Systems for online trading on the stock and forex markets, financial document management systems, technical analysis solutions, and real-time market information services are just a few of their efforts.
The company’s flagship product, a trading platform for financial markets, is currently being developed by Devexperts. The item is both a “box” offered on-sites or via the SaaS model and a “framework” for customized brokerage company solutions.
- Solutions Centroid
A fintech business called Centroid Solutions focuses on connection solutions for multi-asset financial brokers as well as risk management, quantitative analytics, and complicated execution techniques. Centroid Bridge is an engine that provides order routing and execution, liquidity management, and reporting system for multi-asset platforms. Centroid Risk is a business intelligence software that provides a convenient GUI (graphical user interface) interface to monitor and analyze the company’s risk exposures and all trading activities.
FX, metals, energy, and CFD traders can access Advanced Markets’ wholesale offerings of liquidity, credit, and technological solutions through brokers and banks. Additionally, the business provides a liquidity bridge. In the Americas, Europe, Asia, Australia, and New Zealand, the company’s products are being used by top brokers and institutions.
- oneZero
For retail brokers, institutional brokers, banks, and liquidity providers, oneZero develops corporate multi-asset trading technology. The business makes liquidity bridge Forex technology available. Three different parts of their platform — the Hub, EcoSystem, and Data Source — combine to offer a comprehensive solution for trading technology, distribution, and analytics.
Final Claiming
In today’s world, trading financial assets has become one of the most well-liked ways to generate money, but despite its accessibility, it requires a complicated procedure of generating, arranging, matching, and carrying out orders between buyers and sellers of an asset. The link between liquidity providers and trading platforms, provided by the liquidity bridge, is crucial for building the infrastructure required for electronic trading in the financial markets, and it plays a crucial part in this process.
