There are many software types, which are the backbone of OTC trading. This article explains the main types in simple words. Every day, millions of people all around the world trade Forex and CFDs. Simple and good software are two main reasons why they can practice trade more easily and successfully.
Many new online brokers are using new technology and old trading software. MT4 and MT5 are the most popular options of trading platform. Platforms that have great interfaces assist traders in profiting more.
Forex trading requires so many parts. These comprise;
- Executive Management Systems (EMS)
- Retail broker aggregators
- Order execution software
For a person to be well acquainted with OTC trading software, he should educate themselves with the basic knowledge of forex trading. Identifying which software your broker access to is a guiding light for knowing the right direction for you in choosing the right software.
Execution Management Systems (EMS)
Companies dealing with forex and CFD are required to have the EMS. In OTC, the dealers utilize EMS to revolve around various partners. Gets price quotations from licensed banks and trading companies
- Finds the best prices quickly
- Let’s Brokers Denote Their Prices
- Displays Trade Information and Follows Rules
Advanced Features
EMS doesn’t only cater to ordinary traders, but traders of big accounts are also envisaged in utilizing these special tools:
- Automatic trading
- Artificial intelligence
- Clear information before and after trades
These tools not only help you in becoming a monster trader but also in trading faster and with high quality, especially when markets are in serious or rapid changes.
Aggregator Software for Retail Brokers
The piece of software (Software mentioned earlier) mentioned a little while ago may also be used for forex and CFD trading in ways apart from the ones we have mentioned. OneZero, PrimeXM, and so on mix prices from various locations. The main reason is that the brokers can choose better prices and find the trades quicker by combining prices from different sources.
Take quotes from banks, other companies like the stock exchange and the network, like data feeds.
- Helps brokers to adjust prices or create different price streams.
- Disburses orders to the best-price source.
- It is a self-running machine if one source gets disrupted.
- Connects trading platforms such as MT4, MT5, and cTrader to pricing sources.
Popular Aggregator Software
Some of the well-known aggregator software are:
- Gold-i Matrix
- Match-Trade
- OneZero Hub
- PrimeXM XCore
Besides real-time information, these platforms also monitor risks and even assist trades. They are essential in OTC markets, where brokers execute orders very fast, and the market is loose.
White Label Trading Platforms
OTC trade platforms are the mainstay of, among other things. A majority of forex and CFD brokers already use them instead of developing a bespoke platform from scratch. In this way, they save expenses aside from time. Well-known platforms are not limited to, but include those such as MT4, MT5, and cTrader.
MetaTrader Platforms
It is a Forex and CFD trader who uses the MetaTrader platform. These are the opportunities it gives them:
- Modern solutions
- Unlimited technical indicators that are customizable
- The tools to judge different text sets
- Furthermore, data about price changes from which traders can infer.
Fast and Convenient
- Orders get executed swiftly with no load times on these platforms. Traders can use:
- Highly reliable web platforms
- Desktop means
- Mobile apps like iOS and Android for trading, which fit in the hand
OTC software VS Centralized Exchanges
There are obvious differences between OTC and regular trading platforms. Traders and the trading assets they select are affected by these differences.
1. Trading Structure
OTC trading occurs when two parties negotiate directly or with the help of intermediaries such as brokers. Currency and CFD markets do not have a central exchange or an order book. Main exchanges for stocks have a central order book where buyers’ and sellers’ orders are collected. OTC markets have less regulation than the traditional exchange system.
2. Pricing
Liquidity providers establish prices in the OTC markets. Regular stock exchanges, on the other hand, exhibit their natural supply and demand based on transparent prices. This leads to greater transparency on the part of regular exchanges. OTC markets like forex and CFDs, for instance, often apply different prices for each client, reflecting their size, risk, or relationship with them.
3. Access to Liquidity
The deep availability of institutional liquidity is gained through OTC trading. The offer includes such things as special quote requests and big trades without affecting public markets. On the other hand, the regular exchange mixes up the liquidity that they receive from the order books. The large orders can bring a price movement or a market signal of the large trade.
4. Rules and Openness
Identifiable trends in OTC markets, both forex and CFDs, with restrictions operating are the most significant ones, compared to the regular exchanges, which have fewer rules and are more open. Besides that,t the exchange uses a wide range of rules, they also protect the investors, require the reporting of more trades, as well as establish the prices.
5. Flexibility
OTC markets have a made-to-order contract, negotiated spreads, and off-market trades. However, traditional exchanges have more of these, definite products with certified trading types, but there is no room for special adaptations.
