Have you ever experienced a delay in your trade execution? It may be caused by your forex trading server. Check out the full review in the following article.
Forex Broker Trading Server – In today’s technological progress and convenience, there are lots of forex brokers scattered on the internet. The many options available make not a few retail traders confused in choosing it. There are so many things that can be compared from one to another. Starting from the basics such as spread and commission facilities, various trading conditions, to complex matters such as the regulation of the forex broker. In this article, we will discuss one side of the broker, namely the forex trading server.
Overview of Forex Trading Servers And Latency
When discussing the issue of Spread, Fix Rate, or many other facilities, most brokers will proudly show their advantages. However, not many brokers discuss the quality of forex trading servers. Information about this forex trading server is not openly displayed by forex brokers. You have to dig deeper into the information from the broker’s Customer Service to get the information.
The selection of this forex trading server later will greatly affect the quality and speed of your forex trading. Why is that? Before your Buy/Sell execution is executed, there are a lot of processes that must be followed. From logging in to the broker, it is moved to Liquidity Providers and forwarded to the Liquidity Hub which is the broker’s data center. A wide variety of Liquidity Hubs. these are:
- LD4 (Equinix data center) in London
- NY4 in New York
- TY3 in Tokyo
The processing time it takes for your order to be executed is called Latency.
If discussed in simple language, Latency is the delay or processing time required of a Request and Response or command and answer. Whereas in the context of trading itself, forex trading server latency is the period from you pressing the Order button in Metatrader, until the Order is executed and displayed on the screen.
High latency is of course not good for traders who want to make money with short-term strategies, for example, scalping. This latency can also be detrimental overall because it makes the possibility of requotes, slippage, etc. to be higher. The problem is, Forex trading server latency is affected by several factors such as:
- The quality of the Internet you are using
- Signal mileage between you, the broker, and the Liquidity Provider.
- Quality of Hardware and Software used by the broker and you.
- Other unforeseen factors such as wiring, technical, etc.
The poor quality of the internet users is of course the problem most often used by Indonesian traders. This is because the quality of Indonesia’s internet is currently still below other developing and developed countries. So not only traders, but the general public also often experience disruptions in this service. Because the internet is a type of 2-way communication, besides being influenced by your internet connection, the quality of the hardware and connection of the forex trading server used by the broker is also very influential. But of course, you don’t need to worry too much about the quality of this broker’s server, considering that there is already a regulatory body that will check the feasibility of the forex trading server.
Have you ever played online games? You certainly don’t want to feel Lag while playing. You will choose the in-game server closest to where you live. Likewise in forex.
For example, a Hedge Fund Manager lives in Hong Kong, is connected to a broker who uses a forex trading server located in the US, and is connected to a Liquidity Provider located in London. Even with the fastest internet today, the execution speed of the Order Hedge Fun Manager will still experience a delay, at least for 300 milliseconds. Imagine if the Manager is a Scalper who gets his money with fast and precise execution? Of course, this delay will greatly interfere with trading activities.
How To Check Latency Of A Forex Trading Server?
Have you ever checked the Latency of your forex trading server? If not, maybe you should read this article to the end, because we will teach you some practical and simple ways to see the latency of your forex trading server.
Check Directly From Metatrader
From Metatrader itself, you can check the Latency of your Forex Broker trading server. There are currently 2 currently discovered ways of viewing it:
1. From the Open a New Account Window
The first way is to view it by opening the Open New Account window in Metatrader 4. The Open New Account menu can be found in the Navigator window. Right-click on Account and select Open New Account.
After that, the forex trading server selection window will appear on your Metatrader 4 platform. From there you can see the choice of forex trading servers available at your broker. However, the servers shown here are grouped for each Account type.
2. Check in the lower right corner
The second way is to look at the bottom right corner of your Metatrader 4 Window. Usually, there will be information in the form of a signal image followed by a number. This figure shows the total data usage that has been done by Metatrader 4.
Right-click on the number. Then a variety of other server options will appear available at your broker. The difference is, this time the forex trading server will be grouped based on the location of the forex trading server. Automatically, Metatrader will choose the forex trading server with the closest distance or with the smallest latency.
Ping From Command Prompt
One other way to check the Latency of your forex trading server is to use the features of the Command Prompt. This method is specifically for users of the Windows operating system and may be slightly different if used on Linux or macOS. Here’s a complete way to check forex trading server latency.
First, open your Metatrader 4. After that select, the File menu selects Open Data Folder.
Second, an Explorer window will open which stores various data that you use in Metatrader. Select Folder Config and open it. In it, you will find various types of servers that have been stored.
Third, select one of the forex trading server files and then right-click until the menu window appears. Select the Open With menu to open the file. Then a selection of applications that can be used to open the file will appear. Choose Notepad.
Fourth, after the file opens, you will be treated to an encrypted text about the details of the forex trading server. But there is some important information there. Look at the image below.
The text that is given a black box is the important information in question. This information will be used to Ping. In general, this information is the address of the forex trading server used by the broker. There is an IP Address and there is also a Website address. Both can be used.
Fifth, open the Windows Command Prompt by writing CMD on the Windows Search feature or its Run feature as shown below.
Finally, write the following command: ping (broker server address) -t then press enter.
Then How to Overcome High Latency?
Overall, forex trading server latency is not something you can control. There are only a few small parts that you can pay attention to, such as using a quality internet provider to streamline the delivery of data to the forex trading server. In addition, always update the quality and capacity of the hardware so that it is not too burdened with the amount of data coming in and out. One more thing that might help lighten your internet load is: not burdening Metatrader 4 with a variety of Custom Indicators.