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T4B launches a "limited risk CFD" plugin for MT4 that complies with AMF requirements
Tools for Brokers (T4B), a technology provider for forex brokers, has recently developed two new innovative plug-ins for MT4 for brokers operating in France and Japan to provide limited risk accounts and highly accurate trading reports.
Many changes have been introduced by European regulators to mitigate traders' risks:
Sales and marketing practices
Banning digital advertising for CFDs
Ban on bonuses offered by brokers
Protection against negative balance
Limited risk accounts
Conditions of withdrawal applications
For example, in France, brokers must introduce limited-risk accounts. With this type of account, a guaranteed stop-loss must be automatically set so as not to lose more than the margin used to open the trade. Also, traders should not have the possibility to increase the stop-loss level. Several brokers like CMC Markets, XTB and Plus500 now offer limited risk accounts via their proprietary platforms. But the MetaTrader 4 platform that is used by most brokers does not have the ability to force traders to define a SL for each transaction, so brokers who wish to operate on the French market must implement this function either with their own IT department or by outsourcing this task.
To meet these new requirements, T4B has developed a plugin that solves the problem. This plugin prohibits the launch of trades without defining a SL level and it restricts its movement thereafter. Traders are therefore obliged to determine their maximum loss when first opening a position.
This is not the only solution developed by T4B to meet regulatory requirements. Some regulators like the FSA in Japan require very accurate trading reports. Instead of hiring employees to develop these reports, brokers can automate this process with the right technology. T4B has developed a tool that generates daily reports for the FSA with all of the required trading information.