Author Topic: This will blow up your mind - - - Forex world snowden time  (Read 41 times)


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There are several terms going around in the market - full broker, prime broker, white label etc. Therefore I would like to clarify about each of them and their differences in detail, for a clear understanding of what we and our competitors are offering. Prices cannot be compared fairly if there is confusion about what exactly is for offer from us or from someone else.

Prime broker is the term coined by one of our competitors in order to fool people. There is no such thing as prime broker (as far as MT4 license is concerned).

Just for the sake of simplicity, just forget about everything and let’s focus only on MT4 for the time being. The confusion of white label or prime broker arises not from what kind of company or bank account or website we or anyone else is offering. This confusion arises from what is in MT4 is being offered.

MT4 has separate components –

a)      MT4 Admin

b)      MT4 Manager

c)      MT4 Client Terminal

d)     MT4 Server (Live, Demo and Backup)

e)      MT4 Datacenter


Just like you can download unlimited number of copies of MT4 Client Terminal from any broker, but you only have as many access as the number of real accounts you have with that company, you can download unlimited number of Admin or Manager Terminal as well.

When you go to Metaquotes, they give you FULL MT4 license for one time fee of $100,000 and monthly fees of $1,500.

In this license you get 1 Live, 1 demo and 1 backup server. You have access to Admin terminal and from that you can create as many manager accounts you want. You can also create unlimited client accounts from Admin or Manager terminal. You also have unlimited copies of datacenter, which is nothing but a proxy server.

This is FULL BROKER arrangement.

Unfortunately this is self contained unit. So whenever a client places the order, trade is executed, ticket number is generated but since it is isolated unit not connected to any liquidity provider, trade goes nowhere. You need a bridge to STP the trades to liquidity provider, so that trade actually enters the market.

Bridge is a proprietary software and each of companies who offers it, charges a commission per trade for providing this facility.

Now suppose you don't have $100,000 to spend, you go to Service provider, like us. So we buy full MT4 license by paying $100,000 to Metaquotes but they will give you at lower price and collect the discount they offered in long term in form of various fees/commissions. So here you have ADMIN terminal as well as manager terminal but license was bought by someone else and you are using it. Just like you can live in a rented house without paying full amount to buy it, but you can use every single feature of the house.

Metaquotes gives you for $100,000, that is lowest you can find anywhere!
However my company can provide Admin access for much lower price.
So Server will remain hosted at our systems, however you can do everything you can do as in full license for much lower price than $100,000.

Full Admin access allows you to do the following -

a) Edit Open/Closed Trades - You can change open time, close time, open price, close price, profit/loss, virtually anything. Therefore you can modify and create trading statement of any account entirely different from actual trading results. You can also transfer trade from one account to another. You can reopen closed trade etc. Many brokers use this to remove profitable trades from someone who made a lot of profit or several other ways which will be covered under demonstration and training session. Many of myfxbook and PAMM acc performance on dubious brokers owe to this trick.

b) Edit Prices and remove it after its intended effect - Brokers create spike and later on remove it from price history. Then trade is shown at out of market price and  account has already suffered margin call.

c) Stop Out Level modification - Suppose you have stop out of 10% but there is a trader howering at 12.7% for hours, you can bring trader to another group and modify Stop out level to 13% so that his trades are closed and you restore stop out level to 10% and edit comments to show that he was stopped out at right price.

d) Manager Rights - You can properly allocate manager rights. Usually manager logins are provided to your employees. So you don't want an employee who has right to open or delete accs to have rights to trade on company's acc via Risk manager/Coverage acc. That leaves possibility of him opening accounts and trading on those acc and losing money and deleting accounts. Similarly, cashier/accountant cannot have other rights which can be misused. Our employee management plan covers all these issues in depth and part of our demonstration and training section.

e) Quick Turnaround for your clients and access plugins - You don't require to email us for modifications and will have quicker turn around time while using our plugins (for example, adding someone in multi level IB structure or adding someone for Anti-scalper.

We neither recommend nor endorse any of the above behavior. Please refer to attachment which shows section where you can execute above activities.

Now coming to what you are going to get from me or any of our competitor looks similar but is radically different. Each of us will give you –

a)      Manager terminal (unlimited copies)

b)      Manager account logins/credentials (Our competitors – limited fixed number, My company – unlimited)

c)      Groups to classify traders based on STP/MM/Country etc – Our Competitors – $100/month, per group. My company – unlimited number of groups

d)     Securities – Number of instruments you can offer to your clients. Our competitors – $30 per security. My company – as many securities as MT4 permit/no limits

e)      Currency suffixes (E.g. UsdJpy+ or UsdJpy. or UsdJpy!) – Our Competitors – you have to chose from suffixes they offer. My company – you can use any suffix you want.

As you can see, my company doesn't put restrictions which our competitors does. Also, unlike our competitor, we don't put 40+ brokers on the same server.

One way to confirm this thing is ask these questions to other service providers -

a) How many symbols and securities can I have? Can I suffix whatever I like to for the symbols?
Most of my competitors will limit number of instruments you can have, as well as a monthly fee for each instrument.
b) How many groups can I have free of cost?
They would say about none. Because if somebody is servicing each broker with separate MT4 server or have fewer clients, they won't mind even if you have 10 groups. However who are giving white label, they have a hard time giving more than 10 because 10*40 (40 brokers on same server) is 400 which is big number to manage for the service provider.
Therefore all our competitors charge a fee per month for each group you have.
c) If I don't like your liquidity or have slippage etc, can you connect me to some other broker/bank free of cost?
They would not allow you to do that. They would say you have to use their liquidity in all cases. Or select on of their preferred partners. We will connect to whatever liquidity provider you wish to be integrated with.
d) How I can be sure that you are not market making me?
With us, you have Liquidity provider and Bank account under your company’s name. We are strictly service provider with no participation in management of your client’s fund. They send to you and you decide where to keep it. Other companies are like dark pool, you cannot make out whether they are actually providing STP or running B book against you.

I hope the difference is amply clear from the above, but since it is not very simple to fully understand. Therefore if I was not able to explain it correctly, I can show this over skype or teamviewer in demonstration session to better explain the difference between my solution and that of other companies.