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CoesFX and MT4

  • #1
  • First Post: Aug 21, 2006 3:29pm Aug 21, 2006 3:29pm
Some of you know that I've been alluding to an imminent announcement from an ECN that will be great news for a lot of us. Well I've been working with CoesFX for the past month on testing an in-house implementation of MT4. This is exciting news because CoesFX will be the first ECN to adopt MetaTrader. I've used it in demo and am quite pleased with it.

If you're interested you should send me an email (stockwet@g m a i l . c o m). I have some information to provide about my experience with the demo before you proceed to sign up with CoesFX. I also need to explain how to get signed up since I don't think they have released this to the general public yet (read: I know the right people to call over there )

Best,

stockwet
  • #2
  • Aug 21, 2006 4:18pm Aug 21, 2006 4:18pm
Hey Stock,

What is the difference between what you are offering and what SpotFX clearing is offering for mini accounts on the coefx site?
  • #3
  • Aug 21, 2006 4:27pm Aug 21, 2006 4:27pm
Quoting Forex316
Hey Stock,

What is the difference between what you are offering and what SpotFX clearing is offering for mini accounts on the coefx site?
Hi Forex316,

Thanks for the post. First, I'm not offering anything at all. I need to make that clear up front. I'm a trader like the rest of you. I've struggled to find a broker I trust. So far, I've been with GFT Forex, InterbankFX, and FXDD. I liked GFT Forex, but, kind of just really came to like MetaTrader. So, I'm excited because this is good news for me.

On to your question. A bit of research here at the forum will show that the mini's offered through CoesFX are managed by a dealing desk. I happen to know that the firm which runs the dealing desk for CoesFX minis is a company called CFG Trader (see my thread called "Stop Hunting".)

To make things more complex, CoesFX did a deal with StrategyBuilderFX (SBFX) whereby SBFX offered MetaTrader using SpotFX clearing. SBFX bought the server license to MetaTrader, setup the server, used the CoesFX API to connect to the CoesFX platform and delivered this service to SBFX users.

This news is different from both instances. In each case, you have a 3rd party company running the MetaTrader servers that your client connects to. In the mini case, you even have a trading desk run by a 3rd party company. In the SBFX case, CoesFX only provides the gateway to the platform. Now, we have a situation where CoesFX owns license to MetaTrader servers and is committed to being the primary service provider to users wishing to use MetaTrader. As for me, I'd rather do business directly with them than having to go through any 3rd party firms.

Does that make sense? In the end, it's personal preference.
  • #4
  • Aug 21, 2006 4:33pm Aug 21, 2006 4:33pm
Hi Stock,

As a Live Metatrader user as well, this ECN/MT4 sounds like a potential great service. Very interesting.
Thanks for the update. I will email you for your info.

Thanks,

Mike
  • #5
  • Aug 21, 2006 6:06pm Aug 21, 2006 6:06pm
stock,

Sure I am interested with MT4 based brokers (for the script automation)!

What type of account do you have with CoesFX that does not deal with a 3rd party? What about Leverage? I sure like a 200:1 or even a 500:1.

(last week, I signed up a demo and was surprise its a MT4)

But what about their dwindling capitalization? Go over at CFTC website and I noticed their capitalization is down to less than $2K.. What is the story behind that?
  • #6
  • Aug 21, 2006 6:35pm Aug 21, 2006 6:35pm
I also saw on the NFA site that they were in trouble for something, maybe they fixed that, Im interested but want to make sure they are not on the way out.
  • #7
  • Aug 21, 2006 6:39pm Aug 21, 2006 6:39pm
What I heard was that CoesFX were invovled with rogue IBs - Repco perhaps?

Thus the exodus of capital?

However, I am hearing that its ironed out... turning a new leaf?
  • #8
  • Aug 21, 2006 6:42pm Aug 21, 2006 6:42pm
Stockwet, I'm a bit confused... so MT4 direct with CoesFX will go through CoesFX directly, even if the lots are less than a standard lot?

What I'm really asking is, will this be a good platform for trading news with MT4 for mini accounts?

also, do you know if they pay interest? before on the demo for CoesFX MT4 I saw that they collected interest but did not pay it.
  • #9
  • Aug 21, 2006 6:43pm Aug 21, 2006 6:43pm
I was wondering if you could provide some information on how I can gather some information on brokers' capitalization/assets. What website, exactly, do I need to go to etc?
Quoting BurgerKing
stock,


But what about their dwindling capitalization? Go over at CFTC website and I noticed their capitalization is down to less than $2K.. What is the story behind that?
  • #10
  • Aug 21, 2006 6:44pm Aug 21, 2006 6:44pm
Quoting fairtrade
I am wondering if you could provide some information on how I can gather some information on borkers' captialization. What website, exactly, do I need to go to etc?
http://www.cftc.gov/tm/tmfcm.htm

Review as much PDF files as you wish
  • #11
  • Aug 21, 2006 6:47pm Aug 21, 2006 6:47pm
Thank you



Quoting BurgerKing
http://www.cftc.gov/tm/tmfcm.htm

Review as much PDF files as you wish
  • #12
  • Aug 21, 2006 6:57pm Aug 21, 2006 6:57pm
Quoting ycomp
Stockwet, I'm a bit confused... so MT4 direct with CoesFX will go through CoesFX directly, even if the lots are less than a standard lot?

What I'm really asking is, will this be a good platform for trading news with MT4 for mini accounts?

also, do you know if they pay interest? before on the demo for CoesFX MT4 I saw that they collected interest but did not pay it.
This is a good question. CoesFX today offers mini accounts, but it's through a 3rd party clearer - CFGTrader. CoesFX's true strength lies in their direct access to the interbank market. They are one of the few, true ECN's out there. That means, though, that you must trade standard lots. The actual CoesFX platform, until now, is a proprietary platform they built in-house. It doesn't offer charting but has other features not available in MT4.

For all you new folks to Forex, ANY broker that offers minis is trading with a trading desk. The interbank market is a standard lot market. Before mini trades go into the interbank market, they need to be aggregated into standard lots first. That's what the dealing desk does.

I don't think this is a good platform for trading news with mini's, primarily because they use CFGTrader as the clearer for minis (see my thread called "Stop Hunting" to find out about these guys.) This should be one of the best platforms for trading news with standard lots, though. (Read this post why I think CoesFX is a good move for news: http://www.forexfactory.com/forexfor...&postcount=11).


So, here's the breakdown the way things stand now:

CoesFX Mini MT4 - Cleared through a dealing desk - CFGTrader, then back through SpotFX.
CoesFX Standard - Cleared through SpotFX
CoesFX Standard MT4 - Cleared through SpotFX

It's possible that sometime in the future CoesFX would have their own dealing desk to work with mini's, but that's not the case today. I don't know what their business plans are in that area.

Yes, they pay interest. It's hard to get swap rates, though. I essentially have to ask my account rep. They're working on making them available in the platform, but, it hasn't happened yet.
  • #13
  • Aug 21, 2006 6:59pm Aug 21, 2006 6:59pm
Quoting BurgerKing
http://www.cftc.gov/tm/tmfcm.htm

Review as much PDF files as you wish
When you look at this information, you need to keep in mind that CoesFX is moving all of their clients over to SpotFX. Most of this change happened in June, with some accounts still left over. You'll notice that before June, CoesFX had the higher numbers, with SpotFX maintaining the minimum. Then, there was a switch in June where CoesFX dropped off and SpotFX picked up all the CoesFX capitalization and then some.
  • #14
  • Aug 21, 2006 7:06pm Aug 21, 2006 7:06pm
Quoting stricko108
I also saw on the NFA site that they were in trouble for something, maybe they fixed that, Im interested but want to make sure they are not on the way out.
I know some of you are new, but, these questions have been asked and answered many times on this forum by many traders other than myself.

Several years ago, a complaint went to NFA against an introducing broker for CoesFX. The complaint was that the IB had promised substantial gains from the forex market with little risk. As people signed up, they began to trade with CoesFX and promptly lost their money. So, they initiated a complaint against both the IB and CoesFX.

Here's a recent statement regarding the matter:
Quote
In a story published on August 14,2006, FX Week incorrectly implied that COESfx engaged in fraud and was fmed for such activity by the CFTC. The CFTC did not allege that COESfx engaged in any fraudulent activity whatsoever. Instead the CFTC alleged that an introducing broker that traded on the COESfx platform defrauded a number af the introducing broker's clients. The CFTC maintained that the introducing broker was an excLusive agent of COESfx and under CTFC rules COESfx was vicariously liable for the introducing broker's wrongdoing even though COESfx did not engage in any wrongdoing itself. COESfx denied that the introducing broker was its exclusive agent However, primarily in order to avoid the significant litigation costs associated with challenging the CFTC's position, COESfx agreed to enter into an order under which it will pay a total of $246,601.92 to the introducing broker's clients. The Court Order does not contain any findings that COESfx engaged in any fraud whatsoever or that COESfx misled any of its customers. All findings of fraud related exclusively to the introducing broker and not COESfx.

Most brokers would have died and gone by now with this type of ding. However, the reason that CoesFX is still alive is because they have an excellent platform and adhere to high standards. They have a good name among traders, and so, they've stayed alive. As I mentioned in a previous post, if the NFA complaint is an issue for someone, simply don't consider them as a broker. I have no problem with the complaint, have received good feedback on them from other traders and am looking forward to continuing trading with them on MT4.
  • #15
  • Aug 21, 2006 7:19pm Aug 21, 2006 7:19pm
Quoting stockwet
So, here's the breakdown the way things stand now:

CoesFX Mini MT4 - Cleared through a dealing desk - CFGTrader, then back through SpotFX.
CoesFX Standard - Cleared through SpotFX
CoesFX Standard MT4 - Cleared through SpotFX
thanks Stock,

any idea what the leverage is like with CoesFX MT4, Standard accounts? Can they do 100:1? or would it be like some other brokers where 100:1 is good as long as the trades are small, but after getting to big trade sizes they drop down to 50:1 or 40:1?

Reason I ask is that most brokers/ecns that offer direct interbank access that I've seen don't seem to have 100:1 at least not when the trade size gets up there.
  • #16
  • Aug 21, 2006 7:20pm Aug 21, 2006 7:20pm
Quoting ycomp
thanks Stock,

any idea what the leverage is like with CoesFX MT4, Standard accounts? Can they do 100:1? or would it be like some other brokers where 100:1 is good as long as the trades are small, but after getting to big trade sizes they drop down to 50:1 or 40:1?

Reason I ask is that most brokers/ecns that offer direct interbank access that I've seen don't seem to have 100:1 at least not when the trade size gets up there.
I think they're at 50:1. I was going to ask if they ever increase that for certain customers though. I'll let you know if I find out anything different.

For me, it's not an issue. My trading system wouldn't allow me to leverage that much if I wanted to.
  • #17
  • Aug 21, 2006 7:21pm Aug 21, 2006 7:21pm
So, if dealing with CFG trader directly, is it a dealing desk?????? or r they a ecn.............




Quoting stockwet
This is a good question. CoesFX today offers mini accounts, but it's through a 3rd party clearer - CFGTrader. CoesFX's true strength lies in their direct access to the interbank market. They are one of the few, true ECN's out there. That means, though, that you must trade standard lots. The actual CoesFX platform, until now, is a proprietary platform they built in-house. It doesn't offer charting but has other features not available in MT4.

For all you new folks to Forex, ANY broker that offers minis is trading with a trading desk. The interbank market is a standard lot market. Before mini trades go into the interbank market, they need to be aggregated into standard lots first. That's what the dealing desk does.

I don't think this is a good platform for trading news with mini's, primarily because they use CFGTrader as the clearer for minis (see my thread called "Stop Hunting" to find out about these guys.) This should be one of the best platforms for trading news with standard lots, though. (Read this post why I think CoesFX is a good move for news: http://www.forexfactory.com/forexfor...&postcount=11).


So, here's the breakdown the way things stand now:

CoesFX Mini MT4 - Cleared through a dealing desk - CFGTrader, then back through SpotFX.
CoesFX Standard - Cleared through SpotFX
CoesFX Standard MT4 - Cleared through SpotFX

It's possible that sometime in the future CoesFX would have their own dealing desk to work with mini's, but that's not the case today. I don't know what their business plans are in that area.

Yes, they pay interest. It's hard to get swap rates, though. I essentially have to ask my account rep. They're working on making them available in the platform, but, it hasn't happened yet.
  • #18
  • Aug 21, 2006 7:26pm Aug 21, 2006 7:26pm
Quoting stockwet
I think they're at 50:1. I was going to ask if they ever increase that for certain customers though. I'll let you know if I find out anything different.
thanks, appreciate it.

on the site it says "up to 100:1" for standard:

http://www.coesfx.com/account.aspx
  • #19
  • Aug 21, 2006 7:28pm Aug 21, 2006 7:28pm
Quoting ycomp
thanks Stock,

any idea what the leverage is like with CoesFX MT4, Standard accounts? Can they do 100:1? or would it be like some other brokers where 100:1 is good as long as the trades are small, but after getting to big trade sizes they drop down to 50:1 or 40:1?

Reason I ask is that most brokers/ecns that offer direct interbank access that I've seen don't seem to have 100:1 at least not when the trade size gets up there.
I think a guy from coesfx said that he can give 100:1 as long as the trade doesn't go over weekend, that means closed by 5:30 PM EST.
Try hard, think fast, die young
  • #20
  • Aug 21, 2006 7:42pm Aug 21, 2006 7:42pm
Quoting ycomp
thanks, appreciate it.

on the site it says "up to 100:1" for standard:

http://www.coesfx.com/account.aspx
That's good to know. I wonder where I got 50:1 from.
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