Which brokers to choose?
For the MetaTrader
terminal one you need a fast broker. Usually ECN brokers are the fastest. If
you plan to trade in London LMAX could be a good choice. Your second terminal
should be a slow broker. Usually these are Market Makers but sometimes it’s
also possible to arbitrage other ECN marketplaces. An important point to consider
is the execution. Most of the Market Makers offer instant execution. Instant
execution has the advantage that you can set the maximum slippage allowed.
How to
setup
The right settings
depend on the broker you choose. The minimum difference between the prices of
terminal one and terminal two should be at least the maximum difference of the
Bid and Ask. Then you can make sure that you get an edge over the market. The
standard setting for closing is 0 difference of the price of terminal one and
terminal two. Some brokers require to keep the position a few minutes before
you can close it. Testing in demo mode is really helpful.
Do I
need a VPS?
A Virtual Private
Server (VPS) is popular in automatic Forex trading and necessary. It is possible
to choose one near the Terminal 1 or Terminal 2 to get latency advantages. A VPS
starts from less than $10 a month. If you want to trade with just one broker, a
VPS with 1024 Megabyte Ram and an average processor is sufficient. If you want
to trade with more brokers at the same time from one VPS you will need more
capacity. A VPS can easily be accessed with Microsoft Windows Remote Desktop.
With the help of this tool it is possible to access and control the VPS like a
local desktop computer.
How many brokers can I trade at the same time?
It is possible to
trade with as many brokers at the same time as you want. The quote provider
Terminal 1 only has to be installed once. The Terminal 2 has to be installed at
least once. It will depend on how many brokers you would like to trade with.
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