Is MT4 a scam?

Aristix

Junior member
24 2
Maybe someone can help me to understand a specific technical problem with MT4 that is starting to be really annoying and I don't know how to deal with it.

I use MT4 with this English broker which generally works well ETX Capital | Forex, spread betting and CFDs | Regulated by the FCA. I use an Expert Advisor with a VPS; upon reaching the desired price, the EA sends the order to the market. The order for the EA is a limit order (i.e. a buy order is launched at 100 when the market price falls from a higher level to 100). However, the platform does not know this, because it simply sees a buy order to arrive when the price goes down to 100. The problem is that lately 50% of orders are executed with negative slippage (ie the purchase takes place at 101, a less favorable price. compared to the one set) and almost never with positive slippage (let's say 10% of cases), despite the security traded is not particularly volatile (Uk Gilt) and therefore I would expect a small percentage of trades at a price different from that desired. I add that the VPS is cheap and not particularly fast. I know that in MT4 execution at the intended price is not guaranteed, but so many orders with negative slippage and so few with positive slippage are calling me a skilful scam.
Now the matter is starting to get heavy because with those negative slippage percentages, the return erodes a lot and the risk remains the same.

The question is: does this depend on the broker (ETXCapital) or on MT4 Manager which should be Metaquote, and therefore, would the same happen by changing broker?

thanks
 
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Trader333

Moderator
8,610 936
I do not use MT4 but are you not able to send an order that the broker sees as a limit order thereby not filling you at anything above the limit you have set ?
 

Aristix

Junior member
24 2
I do not use MT4 but are you not able to send an order that the broker sees as a limit order thereby not filling you at anything above the limit you have set ?
It is clear you don't use MT4. With MT4 also with limit order the broker doesn't guarantee the price I set. If the price now is 105 I can put manually or with an EA a limit order at 100. This means that when the price on platform reaches 100 a market order starts and if the meantime the price changes, order is executed at different price. But usually this is rare and it can be better or worse at 50%. In my case it is becoming always worse. So I want to understand who is making tricks.
What platform do you use?
 

Trader333

Moderator
8,610 936
IB is the platform I have used most and when limit orders are placed you don't get filled at any price worse than the limit set. The fact that MT4 doesn't allow this would be a key reason to put me off using it unless you can use a stop order instead of market order. To do otherwise is fraught with problems in my view as market orders are high risk unless you are in a highly liquid non volatile market.
 

Aristix

Junior member
24 2
IB is the platform I have used most and when limit orders are placed you don't get filled at any price worse than the limit set. The fact that MT4 doesn't allow this would be a key reason to put me off using it unless you can use a stop order instead of market order. To do otherwise is fraught with problems in my view as market orders are high risk unless you are in a highly liquid non volatile market.
What you say is correct but MT4 allows easily to build Expert Adbvisors. This is the reason for which many traders prefer it. And again, ususally this is not a great problem.
 

CavaliereVerde

Established member
573 833
MT4 is a good software and BTW the software you use for algo trading is not so important.
If you have a system that makes pips you can translate it in every language for every platform.
 

CavaliereVerde

Established member
573 833
This is the reason for which many traders prefer it.
The reason people prefer MT4 and MT5 is that they are free :D

Metaqutes provided a kit for dishonest brokers to steal money from traders delaying the execution but IMO that belong to the past.

If you have a honest broker Metatrader offers you everything you need for quality manual or algo trading.
 
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Aristix

Junior member
24 2
Metaqutes provided a kit for dishonest brokers to steal money from traders delaying the execution but IMO that belong to the past.
It is worse than a simple delay. If it was a delay, the price 50% would be worse, and 50% bettere. Instead when price is different form wanted level is 90% worse. It is driven to be only worse.
 
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hefoba

Member
94 75
Hi,

I know Mt4 is not a scam. Brokers can be a scam.
I use 4/5 brokers and compare my returns so I can see when "brokers" fools me.

You can read about B-broker & A-brokers.

Also look at this video :

//H

The reason people prefer MT4 and MT5 is that they are free :D
Metaqutes provided a kit for dishonest brokers to steal money from traders delaying the execution but IMO that belong to the past.
If you have a honest broker Metatrader offer you everything you need for quality manual or algo trading.
 

CavaliereVerde

Established member
573 833
If you think your broker is playing tricks to you, change it.
It is true that with MT is easy for them to cheat but I prefer to think that the broker is to blame more than MT.
MT is the gun but the broker choses to shoot... ;)
 
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KarrosAst

Junior member
11 4
the price you receive and your EA triggers a trade is coming from the Broker's MT4 ( not MT4 itself ), and for the 90% of cases slippage they most probably tell you ''this is the Market price we received from liquidity provider(s), etc etc''. As //CavaliereVerde// stated above, the final decision for an ''executed'' trade(s) and the exact pricing comes from the Broker, where instead of slippage you could get re-quotes. In any case, you can try to use your EA with another Broker too, and then compare the results.
 

TickCOM

Member
92 9
Slippage is not related to MT4/MT5 as such, but a "behaviour" decided by the broker.

Every FX and CFD broker has the possibility to add slippage to the execution, or to widen the spread you get dynamically.

Some brokers have a price/spread feed for each trader. If you want "accurate" price fills, you need to trade exchange based instruments, or find a honest FX broker using Interbank liquidity. CFD trading is 100% synthetic, live with it, or trade CME futures.

Else, you have to live with the synthetic price fills - sometimes complaining to the broker helps getting better fills.
 
 
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