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MetaSpotFX pure ECN , MT4 ,

  • #1
  • First Post: Jul 29, 2008 10:52am Jul 29, 2008 10:52am
They say they offer the following:

MetaSpotFX pure ECN , MT4 , Interbank Execution & Spreads


Unlike any other old fashioned MetaTrader-4 broker or dealer with prices starting from 2-3 pips. However, MetaSpotFX does not control the bid/offer spread and therefore can not provide the same bid/offer spread at all times. Clients have direct access to market prices. Market prices fluctuate reflecting supply and demand, volatility and other conditions. The MetaSpotFX enables clients to trade on tight bid/offer spreads, which are consistently very low, usually less than 1 pip (EUR/USD) in normal market conditions.

100% pure ECN model

Interbank market spreads

Multi-bank liquidity

Powered by Hotspot FX

No dealing desk execution

Segregated RBS accounts for Institutional clients



This all sounds good .... but they are the New kid on the block, so we won't know how this will all work until it has had a record of trading live.


They do have a Demo AVAILABLE that can be tested if emailed ..... the way I understand. IMO


If this Broker has already been discussed here in another thread then my apologies for opening a new thread. And I did not read the HotspotFX atcbroker discussion thread. Anyway maybe we can discuss this ECN for the benefit of all? IMO

http://www.metaspotfx.com/
  • #2
  • Jul 29, 2008 11:12am Jul 29, 2008 11:12am
Web looks unprofessional, won't surprise me if it's a scam.
  • #3
  • Jul 29, 2008 11:12am Jul 29, 2008 11:12am
I can tell you what I know and what I pieced together, they are new yes, a friend of mine has been in contact with them since before they started their own Broker company, they have a successful EA and they came to a limit with max. Lots allowed with MT brokers (and all the other problems one gets trading 50 Lots and more) and so they looked for a solution, why they did not just port to EA to NT or other ECN friendly Platform I dont know but their solution was to do it them selfes, but as far as I know they are not ready yet because hotspot has some problems with getting MT running with their system ...
  • #4
  • Jul 29, 2008 11:24am Jul 29, 2008 11:24am
Look at the account documents, you send the monies directly to Hotspot (just like ATC Brokers), its not a scam. How reliable their solution will be remains to be seen, of course..
  • #5
  • Jul 29, 2008 11:33am Jul 29, 2008 11:33am
Thanks for the input all!

I know someone that has been Testing the Demo and i MAY HAVE AN UPDATE SOON. He seems to think it will work and he is no fly by night. A very good trader. IMO
  • #6
  • Jul 29, 2008 12:05pm Jul 29, 2008 12:05pm
This is Not available for US Residents!
  • #7
  • Jul 29, 2008 12:20pm Jul 29, 2008 12:20pm
This is great...I think something prolly must have changed or someone finally figured out how to bridge Meta properly to an ECN because I keep hearing rumors also that MB is about to launch Meta too. Their answers about Meta are a little different now too. They used to say "Meta doesn't work with an ECN, so we can't offer it." I've had three people ask their Phoenix office (used to be EFX, go through the EFX website) lately, and the answer is always more like "We'd love to be able to give customers Meta with our execution. But until we're convinced that the experience is a true ECN experience, there's nothing we can do." That's a very different answer and certainly not a denial. Plus, if you think about it, they haven't really upgraded Remote Trader like they said they would. Why would MB buy EFX and then not get Remote Trader done? Prolly a good reason I would think. If so, MT4 people are going to have a couple of better options here than what they've had in the past. Just saw the last post...is it true that this MetaspotFX can't be used in the US? Why would that be?
  • #8
  • Jul 29, 2008 12:36pm Jul 29, 2008 12:36pm
Hmm, they appear to be based in Finland, but have contact info in Canada...but anyone that can do this, would at least show the others that it is possible. They mention that they will not impose their own spread, just pass on what they get from the bank to the trader. This should mean they would charge commissions instead. That would appear to be similar to what MBTrading does. MT4 is probably flexible enough to let them do that - if they can figure out how to send quotes straight through the MT4 server. Interesting.
Disregard all prognostications.
  • #9
  • Jul 29, 2008 12:38pm Jul 29, 2008 12:38pm
The applications on Metaspot's website are for non-us residents. Also, Metaspot is not regulated in the US which makes it hard for them to offer their services to US clients. I do not know how they are regulated, if at all in the UK or elsewhere.

I would assume, if a US client wants to do business with Hotspot they would have to do it with their US regulated entity and Hotspot US would require Metaspot to be NFA regulated in order to offer their services to US clients.
  • #10
  • Jul 29, 2008 1:29pm Jul 29, 2008 1:29pm
Just to follow up,

I looked at eu.hotspot and they do not have an application for US Residents. So I think my assumption is correct; if you are a US resident you need to open through their US branch.

To me it seems that Metaspot is acting as an Introducing Broker/Technology provider. I am pretty sure their is no requirement for a company like them to be regulated but I do not know. Does anyone else? I would say that no matter where I lived, I would want all entities that I am doing business with to be regulated by someone. For example, lets say they hook hotspot feed up to MT4 and they go live. Lets say they encounter a problem like this: the hotspot feed comes in fine to MT4 but the bridge that sends trade data back to hotspot isnt working. A client puts stops, limits and market orders on his platform. Trader thinks he is in a trade or thinks his stop or limit has been hit but hotspot has never gets the signal to execute. Not a big deal if you are trying to get into a trade but it is a huge deal if you are trying to get out of one. Who is held responsible for you losses due to Metaspots technology not working properly. You know hotspot will not be the one responsible. My point is this, what regulatory body is going to be making sure their systems are running properly and who is going to audit their systems?
  • #11
  • Jul 29, 2008 1:45pm Jul 29, 2008 1:45pm
Quoting fxtrader42
Just to follow up,

I looked at eu.hotspot and they do not have an application for US Residents. So I think my assumption is correct; if you are a US resident you need to open through their US branch.

To me it seems that Metaspot is acting as an Introducing Broker/Technology provider. I am pretty sure their is no requirement for a company like them to be regulated but I do not know. Does anyone else? I would say that no matter where I lived, I would want all entities that I am doing business with to be regulated by someone. For example, lets say they hook hotspot feed up to MT4 and they go live. Lets say they encounter a problem like this: the hotspot feed comes in fine to MT4 but the bridge that sends trade data back to hotspot isnt working. A client puts stops, limits and market orders on his platform. Trader thinks he is in a trade or thinks his stop or limit has been hit but hotspot has never gets the signal to execute. Not a big deal if you are trying to get into a trade but it is a huge deal if you are trying to get out of one. Who is held responsible for you losses due to Metaspots technology not working properly. You know hotspot will not be the one responsible. My point is this, what regulatory body is going to be making sure their systems are running properly and who is going to audit their systems?
Forgive my lack of knowledge, but would they really set the system up so that essentially trades could get lost like that? And Hotspot keeps these guys as an IB to keep themselves from being liable? Seems odd. I guess the question is, is this actually Hotspot, but they are running their Meta license under a different name to keep them separate from their retail platform, or is there something else going on here? If someone hooked up MT4 through Hotspot, why wouldn't Hotspot want to offer it directly? Hopefully, there are some solid answers coming forward, but I'm still bummed if US folk can't use this. That would make this conversation moot to me anyway.
  • #12
  • Jul 29, 2008 1:51pm Jul 29, 2008 1:51pm
Be it Broker, IB or software provider, they all have a 'cover your arse' policy in their agreements which puts the entire risk of IT failure of any kind on the trader.
  • #13
  • Jul 29, 2008 2:25pm Jul 29, 2008 2:25pm
Quoting IndyTrader
Forgive my lack of knowledge, but would they really set the system up so that essentially trades could get lost like that? And Hotspot keeps these guys as an IB to keep themselves from being liable? Seems odd. I guess the question is, is this actually Hotspot, but they are running their Meta license under a different name to keep them separate from their retail platform, or is there something else going on here? If someone hooked up MT4 through Hotspot, why wouldn't Hotspot want to offer it directly? Hopefully, there are some solid answers coming forward, but I'm still bummed if US folk can't use this. That would make this conversation moot to me anyway.
Would they set it up that way, of course not. I could be completely incorrect as I am not an IT guy but to my knowledge there are two API's hotspot's API to MT4 and MT4's to hotspot. So they build a bridge so the two API's can communicate. My example raised the question as to what happens if the MT4 API for some reason, at some point in time goes down or the bridge that is built experience's an error. As shrike points out, it wasn't the best of examples with regards to regulation. But there are plenty of other reasons why you would hope that Metaspot is regulated. It's all hypothetical and I hope that they would be registered and that all of this works out for all. However, I do not see them offering this to US Clients.
  • #14
  • Jul 29, 2008 4:50pm Jul 29, 2008 4:50pm
Quoting shrike
Look at the account documents, you send the monies directly to Hotspot (just like ATC Brokers), its not a scam. How reliable their solution will be remains to be seen, of course..
exactly, they are making the same than ATC in USA, but they work with Hotspotfx UK branch.
So US residents, you can go trough ATC, european like me , we can try both
  • #15
  • Jul 29, 2008 7:28pm Jul 29, 2008 7:28pm
If its customer disclosure like this then it should be the best:
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. [MEMBER] IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. THE PRICES [MEMBER] OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE.

ALTHOUGH [MEMBER] IS THE COUNTERPARTY TO EACH OF YOUR TRADES, [MEMBER] LIMITS RISK TO ITSELF BY INSTANTANEOUSLY OFFSETTING THE TRADES AND POSITIONS IT ENTERS INTO WITH YOU WITH A BANK OR INSTITUTIONAL MARKET MAKER. AS A RESULT, [MEMBER] DOES NOT PROFIT WHEN YOU LOSE MONEY ON A TRADE. RATHER, [MEMBER] EARNS COMMISSIONS ON EACH TRADE IT ENTERS INTO WITH YOU. THE AMOUNT OF COMMISSIONS CHARGED IS DISCLOSED ON PAGE [x] OF THE CUSTOMER AGREEMENT.
http://www.nfa.futures.org/news/news...ArticleID=2104
  • #16
  • Aug 2, 2008 3:03am Aug 2, 2008 3:03am
Can you download their MT and work on a demo account?
On their homepage, when I click on demo account link, they redirect me on same homepage page.
  • #17
  • Aug 2, 2008 5:45am Aug 2, 2008 5:45am
Quoting NTrader
Can you download their MT and work on a demo account?
On their homepage, when I click on demo account link, they redirect me on same homepage page.
from their news section:

posted 22-07-2008

Our demo-server is under update.
All demo trading is closed until the update is over.
  • #18
  • Aug 2, 2008 6:14am Aug 2, 2008 6:14am
Wow! - hotspot spread and execution plus metatrader charts and ordering capability. That would really be something exceptional. It looks to me like it is a hotspot account. If so, You need a minimum $7500 USD to open but You can trade any lot size down to micro. They have 50:1 leverage. They charge $3.00 comission for every $100,000 traded which is the equivalent of .6 pip for a completed trade. Spread is around .5 to 1 pip on EUR/USD. Execution is instant with no requoting
BTC Return This Year: na
  • #19
  • Aug 2, 2008 8:02am Aug 2, 2008 8:02am
Quoting M.A.C.Doug
Wow! - hotspot spread and execution plus metatrader charts and ordering capability. That would really be something exceptional. It looks to me like it is a hotspot account. If so, You need a minimum $7500 USD to open but You can trade any lot size down to micro. They have 50:1 leverage. They charge $3.00 comission for every $100,000 traded which is the equivalent of .6 pip for a completed trade. Spread is around .5 to 1 pip on EUR/USD. Execution is instant with no requoting
Under the conditions you mention, I would definately open an account with them. Let's hope it will come true!
Forex is a losers game.
  • #20
  • Aug 2, 2008 8:29am Aug 2, 2008 8:29am
Quoting M.A.C.Doug
Wow! - hotspot spread and execution plus metatrader charts and ordering capability. That would really be something exceptional. It looks to me like it is a hotspot account. If so, You need a minimum $7500 USD to open but You can trade any lot size down to micro. They have 50:1 leverage. They charge $3.00 comission for every $100,000 traded which is the equivalent of .6 pip for a completed trade. Spread is around .5 to 1 pip on EUR/USD. Execution is instant with no requoting
If you read their account opening documents, its $4 per $100k - which translates to 0.8 pip per round-turn for usd based pairs like usd/jpy. For gbp/usd its 1.6 pips (1.99*4*2).

Min. deposit is $5000. They don't say anything about minis and micros..
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