Metatrader 5 -brokers - disadvantages

Metatrader 5 is in beta testing and due out for release soon.

MetaTrader 5 Client Terminal - MQL4 forum.

Alpari russia is the first broker to announce platform availability.

The platform is going to disadvantage the traders and will cause many problems for many metatrader4 users, if metatrader 4 is discontinued.

The first disadvantage is

Hedging disabled
Multiple positions will be consolidated and netted off without trader consent and request.This will disavantage traders running hedging strategies,multiple expert advisors and systems.

MetaTrader 5 Client Terminal - Forex Trading

Netting off hedge positions will result in traders paying an extra spread to bucket shops.

NEW MT5 Seriously Stuffed For Traders Platform @ Forex Factory


Expert advisors and indicators to be rewritten
MQL4 expert advisors may become worthless and incapable of being used on metatrader 5.Traders are going to have to rewrite all their expert advisors, indicators and scripts.It is not going to affect the professional traders, who rarely use lagging indicators.Many traders took years to develop and test their software, and they are going to have to start again and incur additional costs.

Dealing desks may become fully automated
In the past dealing desks could be spotted out by execution delays.The new platform is faster and designed for the Brokers to make money from traders.It may become easier for brokers to use the virtual dealer plugin.We dot not know what is in store with the new dealer plug in.Traders do not know the risks associated with the new dealer plug in.

Proof that Forex brokers cheat you | Alan's Forex Blog

http://www.trade2win.com/boards/forex-brokers/75944-dealing-desk-brokers-avoid-them.html

New platform bugs
Metrader5 is rewritten from scratch .Unfortunately most new software comes with bugs and bugs can cost traders in losses.As late as 2009 there were bugs on metatrader4.

Bugs - Build 188 / Forum: Forex Trading with MetaTrader 4

New platform acquaintance.
It will take time for traders to familiarise themselves with the new platform.

Unfortunately metatrader 5 will be the new devil in disguise.Same old brokers of the early 1900 , practising vodoo with new tools.

http://www.trade2win.com/boards/metatrader/74696-metatrader-bucket-shops.html

OILDAYTRADER

Alpari Russia have announced demo MT5 accounts only. They haven't announced MT5 live accounts. They certainly haven't announced that they are withdrawing MT4 live accounts. I don't see any MetaTrader broker doing that any time soon.

Hedging - Some people love it. Others think it's a way to con people into paying extra swap to bucket shops whilst simultaneously running out of margin quicker. If people want it I expect some brokers will do their best to provides it.

EAs will certainly need to be rewritten for MT5. Maybe they'll work better, since MQL5 will supposedly fix some of the shortcomings of MQL4. Greater speed would certainly help!

MT4 still has bugs. No doubt MT5 will have some too. Hopefully they'll have fixed a few of them by the time brokers start offering live MT5 accounts. I'm sure folks will have plenty of time to acquaint themselves with the new platform and its shortcomings before MT4 disappears from our screens forever.

Jim

P.S. Alpari Russia have also announced demo Currenex ECN accounts. Maybe you'd prefer one of those to an MT5 account?

Here is Alpari selling metatrader5 using the most ridiculous reasons.All rubbish from FX trader's point of view.

Above all MetaTrader 5 has a range of useless advantages:

* «Market Liquidity Pool» (Market Watch) to watch the market depth;
* 5 orders types as compared to 4 ones in the previous version;
* 4 execution types: Market, Instant, Request and Exchange;
* 38 built-in technical indicators, 39 graphic objects and many MQL5-indicators.

Market liquidity is totally useless in fx.Market depth is useless for retail fx traders

In fx only two execution types are necessary pending limit or maket orders

Indicators do not work in fx, professionals use price ,candles and trendlines.The new indicators do not make any difference.

I use a great programmer and had no problems producing masterpieces never seen on forums or anything remotely near the masterpiece EAS coded for me.I believe a lot of E A problems are created by non professional forum coders producing piles of xxxx coding work.

Metatrader3 is still being used by some brokers , so it is possible Metatrader 4 may be available for quite some time..

OILDAYTRADER

It is a shame that metaquotes can't code hedging enabled in the platform.Anything is possible to code with professional programmers.

Or is this just another attempt to get an extra spread?

Hedging Capabilities | dbFX

Loads of liquidity providers offer hedging capabilities , just a nail in the coffin of metatrader.

OILDAYTRADER

You FX guys are funny

oildaytrader said:

It is a shame that metaquotes can't code hedging enabled in the platform.Anything is possible to code with professional programmers.

Or is this just another attempt to get an extra spread?

Hedging Capabilities | dbFX

Loads of liquidity providers offer hedging capabilities , just a nail in the coffin of metatrader.

OILDAYTRADER

Click to expand...

How can eliminating Hedging (I come from futures, so by default this sound funny to me , if you are both long and shot - you are flat in my book - not hedged )

Anyway to the point- When a broker supports hedging by default you know he is making 2X money on the spread and you actually think its an advantage ?

Example- Broker that supports "hedging"

1. I open a long position (buy 100K USD) Net position +100K
2. I open a new order ticket (in MT this what you use , no?) and sell 100K USD - net position 0-flat

I want to close my position (in hedging brokers each position needs to be closed out independently , this makes you trade X2 thoughs paying the spread X2

3. I need to close my long position i.e. sell 100K
4. close my short position i.e buy 100K USD

Total: I paid 2X the spread (spread on each trade , regardless if on the bid or ask)


Example- Broker doesn't supports "hedging"

1. I open a long position (buy 100K USD) Net position +100K
2. I open a short position and sell 100K USD - net position 0-flat

I want to close my position --- guess what they are closed



Total: I paid the spread once (spread on only one of the trades )

BTW

this is meant with all respect to all forex trades

futures_man said:

How can eliminating Hedging (I come from futures, so by default this sound funny to me , if you are both long and shot - you are flat in my book - not hedged )

Anyway to the point- When a broker supports hedging by default you know he is making 2X money on the spread and you actually think its an advantage ?

Example- Broker that supports "hedging"

1. I open a long position (buy 100K USD) Net position +100K
2. I open a new order ticket (in MT this what you use , no?) and sell 100K USD - net position 0-flat

I want to close my position (in hedging brokers each position needs to be closed out independently , this makes you trade X2 thoughs paying the spread X2

3. I need to close my long position i.e. sell 100K
4. close my short position i.e buy 100K USD

Total: I paid 2X the spread (spread on each trade , regardless if on the bid or ask)


Example- Broker doesn't supports "hedging"

1. I open a long position (buy 100K USD) Net position +100K
2. I open a short position and sell 100K USD - net position 0-flat

I want to close my position --- guess what they are closed



Total: I paid the spread once (spread on only one of the trades )

BTW

this is meant with all respect to all forex trades

Click to expand...

Muzzle

If we are trading multiple automated systems , one system may be on 5 m time frame and another may be on hourlies , dailies or swing.One might be a long trade and the other might be a short trade or a carry trade in the opposite direction.

Metatrader 5 will close all your positions and screw the multiple systems and the trader.

Let us for example say we are long euro , but we see a short term opportunity to short euro , they call it hedging and close all your positions.They won't let you earn

We are poorer due to politicians , bankers and lawmakers.

OILDAYTRADER

Here's a suggestion for you ODT. Pay your professional programmers a bit more. Then they might produce some software for you that can keep track of all those automated systems heading off in different directions at the same time.

Jim

Trading Gurus said:

Here's a suggestion for you ODT. Pay your professional programmers a bit more. Then they might produce some software for you that can keep track of all those automated systems heading off in different directions at the same time.

Jim

Click to expand...

Why pay the programmer to write a temporary solution, if these programmers can't be trusted to get mql5 right, they might do Metatrader6 in a few years, and still be stuck with bucketshops.

On the other hand do an API with UBS/ DBFX and get a permanent solution for execution in milliseconds .

oildaytrader

People aren't pissed off because they can't hedge. They are pissed off because the ability to place both pending buy and sell orders at the same time is no longer available. Even when stops for the pending buy were higher than the entry for the pending sell. Broker still doesn't allow it and says "hedging is prohibited."

I think people realize they are going flat when the hedge.

oildaytrader said:

Muzzle

We are poorer due to politicians , bankers and lawmakers.

OILDAYTRADER

Click to expand...

I have to agree completely with your statement!!!
I think the only way to screw their system is to go back to primitive stop using money
I mean start exchange goods and services without use of money like it once was before
money was invented

On yet another hand if you stop insisting on "hedging" you can get "execution in milliseconds" from a much longer list of APIs than that. Some of those APIs will give you a much longer list of instruments too.

Jim

Trading Gurus said:

On yet another hand if you stop insisting on "hedging" you can get "execution in milliseconds" from a much longer list of APIs than that. Some of those APIs will give you a much longer list of instruments too.

Jim

Click to expand...

I do not hedge at all .I use automated trending strategies and automated multiple contrarian strategies .The trades are triggered at different times of the day.

When the auto trader places trades, it has no knowledge of the outcome ,it trades the dubious market.

Oildaytrader

@sakhter - Does that apply to MT5?

@ODT - Forgive my ignorance, but if the fact that MT5 doesn't support "hedging" wheras dbFX does is irrelevant to you then why raise the subject in the first place?

Trading Gurus said:

@sakhter - Does that apply to MT5?

@ODT - Forgive my ignorance, but if the fact that MT5 doesn't support "hedging" wheras dbFX does is irrelevant to you then why raise the subject in the first place?

Click to expand...

I have no idea how MT5 is set-up. I wanted to do a beta test, but wasn't invited to the club.

I am still allowed to place both pending buy and sells on my MT4 platform (US broker)--but I've seen other brokers completely eliminate the simultaneous pending order feature EVEN THOUGH it is not hedging.

The only brokers I know that still allow pending orders on both sides are FXDD & dbFX. Anyone using MT4 should stay away from brokers who claim to NOT have a dealing desk.
Sometimes you need a dealer stupid enough to take the other side of your trade.

sakhter said:

The only brokers I know that still allow pending orders on both sides are FXDD & dbFX. Anyone using MT4 should stay away from brokers who claim to NOT have a dealing desk.
Sometimes you need a dealer stupid enough to take the other side of your trade.

Click to expand...

Every broker needs a dealing desk , honest or dishonest dealing desk or manual or automated ?

IBFX is a great example of a company you should avoid at all costs

sakhter said:

IBFX is a great example of a company you should avoid at all costs

Click to expand...

Be careful of IBFX stop hunting. @ Forex Factory

I have seen spikes on IBFX WITH MY OWN EYES.

oildaytrader said:

Be careful of IBFX stop hunting. @ Forex Factory

I have seen spikes on IBFX WITH MY OWN EYES.

Click to expand...

IBFX is a scam. Pure and simple. Stops will get hit & then your target will get hit.

Even in the boston technologies "start a brokerage" business plan. It states that if they are NOT going to do STP (ie. they will stop hunt) customers will NOT continue to do business with them, and essentially take their money elsewhere. Boston Technologies solution to the lapse of client retention is MORE ADVERTISING to lure new customers.

Not surprising that I've seen more advertisements for IBFX than any other retail FX brokerage. stay away at all costs. they are especially good at attracting newbies with their contests & debit cards.

Here it is Metatrader5 with disadvantages

Beta Testing of MetaTrader 5 Has Started! - MQL4 forum

The pile of DUNG has been released .

Look at faults

The piece of **** is out and read the complaints

MetaTrader 5 Client Terminal - Page 21 - Forex Trading

Not much much interest in MT5.

MetaTrader 5 Client Terminal - Page 20 - Forex Trading

Most bucketshops will probably end up with this headachache.

http://www.trade2win.com/boards/metatrader/74696-metatrader-bucket-shops.html