MT4 and MT5 construction analysis - divided into three operation modes according to the system structure

1. "Label" mode

Commonly known as white mark, this model is similar to the OEM production of commodities, that is, financial institutions or margin companies, in order to expand customer groups or enhance business influence and income, introduce partnership organizations to operate together by increasing credit or providing background fund liquidation.

The bank only provides trademarks, while the foreign exchange margin trading system, trading parity, margin business staff and specific operations are all entrusted to special margin companies.

This mode is that from the customer's front-end system to the middle-end fund position management to the back-end flat trading, all are completed by a margin company agent, that is, all positions are automatically aggregated to the margin company they cooperate with. In this mode, banks can only earn small spreads (large spreads are mainly earned by margin companies) and cannot obtain any gains from trading operations (this part of the gains will be obtained by margin companies).

And because it can only cooperate with one margin company, the business has great credit risk and legal risk facing customers. If the margin company cooperating with the bank has credit risk, system risk or legal risk, the bank will face legal risk of customers.

The bank only charges a small spread in this business. Therefore, this business has the advantages of mature system and high degree of specialization, but the disadvantages are less profit sharing and too much credit risk associated with a margin company.

 

 

　

2. "Develop new front-end system" mode

That is, financial institutions or margin companies directly operate and accept customers' investment and transaction applications. It is a completely independent system developed by itself. At present, this is the operation mode of a few margin companies. The advantage is that the personalized design is relatively strong, while the disadvantage is that the well development cycle is too long, the system cost is high, and the implementation and operation risks are relatively large

3. "Purchase front-end system" mode

It is to purchase the formed margin trading system, centrally manage transactions, quotations, accounts, etc. on this system, and then send the fund data to other systems through the next day. This mode of independent operation based on professional molding system is relatively flexible and can carry out business completely independently.

It is just to introduce margin brokers (hereinafter referred to as ICBC) to help expand customers and market the foreign exchange margin products of this institution. This model is similar to the first one. The advantages of this model are profit maximization, mature system, fast implementation speed, low operation risk and strong business scalability.