Industry standard MetaTrader 5 has added new capacity for synthetic symbols in build 1880, allowing traders to analyze price history over longer time frames. Synthetic symbols allow customized groupings of popular forex pairs that include EUR/USD, USD/JPY and EUR/JPY into single tickers that can be charted and reviewed for profitable trends. The new feature uses complex calculations that can take time to run when querying long-term histories, even on fast machines. The release also includes minor bug fixes.
Third-party vendor Tools For Brokers also announced the MetaTrader 5 Trade Processor (TP), combining forex and crypto functionality into a secure multi-port modular system. COO Albina Zhdanova discussed the release, stating that "using TP allows the broker to attract a new audience by broadening the spectrum of their offering in crypto. Our new product allows for the execution of the trade in crypto symbols as well as currency pairs, combined into a single technical solution."
Hundreds of forex brokers across the U.S, Europe and Australia offer the MetaTrader 5 platform as well as the older and more stable MetaTrader 4. These include IG Group, GAIN Capital Holdings, Inc. (GCAP), OANDA, Pepperstone, XTB and Saxo Bank.
Private equity firm CVC Capital Partners Asia Fund took a 98% stake in U.S. forex broker OANDA in May, but CEO Vatsa Narsimha expects to retain his position, according to a recent interview. He advised that "there will be no immediate change to the organizational structure of OANDA, and we will continue to implement the same strategy as planned. The key difference lies in the fact that the acquisition will open up a wide range of opportunities in terms of enabling us to execute our vision for both organic and inorganic growth in the coming years."
The CEO also discussed the August European Securities and Markets Authority (ESMA) rule changes that will lower margins on popular currency pairs to 30:1 from levels that now run as high as 200:1, insisting that OANDA views the rules as positive. He expects little impact to the firm's European growth because the broker has "always been conservative when it comes to margin requirements," offering leverage at the lower end of industry standards.
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London's IG Group has added enhancements to the broker's web and mobile trading platforms. The new versions allow traders to partially close out positions by clicking on charts instead of filling out order entry forms. The feature can be turned off in settings if needed. The new improvements add to recent updates that include market name watermarks, a chart customization feature and a date/time "Go To" function.
GAIN Capital reported an 11.5% decline in June retail forex volume for the U.S.'s Forex.com and the U.K.'s City Index, with monthly volume dropping from May's $243.3 billion to $213.9 billion. Average daily volume slumped as well, falling to $10.2 billion compared with $11.1 billion in May and $11 billion in June 2017. Active customer accounts also fell in June, at 130,108 compared to May's 131,036.
June metrics track similarly mediocre results from other major forex brokers including Saxo Bank, with most citing dull conditions and relatively narrow trading ranges while world currency markets gauge the long-term impact of looming trade wars. Even so, GAIN's 2018 results have been stronger than 2017, averaging $246 billion in transactions per month compared with $206 billion last year.