EA FRIENDLY FOREX BROKER, 5 USEFUL TIPS
EA friendly forex brokers and how do you know if your broker is EA friendly and that your algorithm will do exactly as you coded it? Let me set out a few important points to check before trading your EA in a live account with any broker.
Let first define what type of broker you are using including the regulation.
- is it an STP or dealing desk broker?
- is scalping allowed
- how are the executions
- did you check the data feed (tick data)
- how much is the up time percentage of the mt4 terminal
The questions above you should always check. EA friendly brokers should be in the category where there is no dealing desk and where they allow scalping. Executions are fast and they have no issue with providing tick data. And of course, they should offer a stable platform.
so lets explain
STP/DEALING DESK: Using an EA means you completely rely on technology. Besides the algorithm you rely heavily on the platform and executions. The higher the up time % the better your EA behaves and the same goes without saying for the executions. STP (Straight Through Processing) means your order will be send directly into the market without human interventions such as “Last Look” where a Risk manager can reject the trade.
SCALPING: A scalping strategy usually aims for small profits and fast trades. There are a few scalping EAs available that many broker are not to fond of. Reason is that these EAs shoot so many (fake) orders into a platform that it affects the price feed and causes delays. EA friendly forex brokers clearly don’t mind simply because they plug all trades into a Liquidity Pool using STP.
EXECUTIONS: This could be one of the most important reasons to decide in favor of a broker. Specially if you are using a scalping EA with short take profits and stop losses you need good executions. How many milliseconds does it take to get a trade filled. What might help you to see if your broker is an EA friendly forex broker, try to make a few trades during news events, the differences between some brokers can be substantial.
TICK DATA: Tick data is an important factor to see how the spreads behave during a trading session. Check the image below where you can see the spreads are sometimes widened with almost 10 pips during the day, so be very careful is you see this occurring and consider to swap to another broker.
UP TIME: Ever experienced a shut down of your metatrader platform in the middle of a trade? Well, that sucks. Where most brokers use stable servers mostly based in London or New York, we still hear about some brokers having numerous technical issues that affect their clients.
So this is all I should know?
To determine if you are trading with an EA friendly forex broker, we already made a selection for you. You don’t have to worry if our preferred brokers are EA friendly, since we already screened them thoroughly.
As for all forex related services picking an ea friendly broker depends on how critical you as a forex trader are. Always try to convince yourself that a broker is known for a fair play model. Also regulation and safety of funds are key factors to thoroughly check.
For more information, don’t hesitate to contact us.