Liquidity Gateway / MT5 Gateway

Ekaterina Nutriakova
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Liquidity gateway or MT5 gateway is a technology introduced by MetaQuotes that gives forex brokers access to liquidity providers, as well as stock and crypto exchanges. It plays the role of a liquidity bridge.

Liquidity gateways in MetaTrader 4 and MetaTrader 5 trading platforms are different and have their own peculiarities. However, usually when forex professionals say “liquidity gateway” they mean “MT5 gateway”. Why? We’ll see in this post.


Liquidity Gateway in MetaTrader 4

In MetaTrader 4 trading platform the liquidity gateway functions as this platform’s built-in liquidity bridge. It specifically works only between MetaTrader servers. And if the liquidity provider uses FIX protocol, then this “bridge” won’t work. That is, the liquidity provider should only be working on an MT4 or MT5 server. 

So within MT4 liquidity gateway is not a “gateway” in the full sense of the word, as it can’t connect broker to any liquidity provider.

Liquidity Gateway in MetaTrader 5

MT5 Gateway Concept

MetaQuotes introduced a new type of a plugin for the MetaTrader 5 trading platform. While all the plugins were literally functioning as plugins in the past, in 2013 gateways and plugins were united by the Liquidity Aggregation concept as solutions that can get quotes and execute trades.

Thus, the liquidity gateway in MetaTrader 5 platform or MT5 gateway is a native technical means that enables data exchange between the trading platform and the liquidity provider or exchange. A gateway makes it possible for a broker to get connected to a provider and get his market data, such as quotes, depth of market and reports. In addition, a gateway allows brokers to execute clients’ deals on the LP’s side.

You may also find that MetaQuotes sometimes calls the gateway an “integration gateway”.

MT5 Gateway Features

Through different configuration tools, the gateway can be configured to satisfy the specific requirements of a broker. For example, a broker can set leverage rules, configure trade request routing, rename trading pairs, convert price data, etc. After a broker configures the rules, the MT5 trading platform starts automatically sending traders’ orders to the liquidity provider according to the set rules.

Some of the gateways have been developed by MetaQuotes itself and initially come with Metatrader5 platform. For example, these are the gateways to the well-known liquidity providers like Integral, FastMatch or Hotspot FX, as well as to some of the largest exchanges like Moscow Exchange, Chicago Mercantile Exchange (CME), Dubai Gold and Commodities Exchange (DGCX) or Australian Securities Exchange (ASX).

According to MetaQuotes the gateways its team has developed are quite simple and secure solutions providing forex brokers with a fast connect to a liquidity provider and maximum speed of executing operations.

Third-party MT5 Gateways

Together with native connectivity solutions from MetaQuotes there are experienced forex software developer companies that can make a product that will technically be implemented in MetaTrader 5 as a gateway and be featured in MetaQuotes “Liquidity Aggregation” list of solutions. One of them is the Market Depth Gateway from Takeprofit Tech. This gateway creates a depth of market for trading pairs and confirms the execution of traders’ orders without sending them to liquidity providers.

MetaTrader 5 Liquidity Gateway API

Public access to the MetaQuotes gateway API allows forex market solution providers like Takeprofit Tech to create a gateway to any liquidity provider or exchange. Particularly, API makes it possible to create a hybrid ECN engine with multiple liquidity providers.

Final Words

To start working with a new liquidity provider or exchange within Metatrader 5, a forex broker should first discuss the terms and sign an agreement with them. After the agreement is signed, a broker can proceed with ordering and implementing the gateway from MetaQuotes or from any of the solution providers if MetaQuotes doesn’t have a ready-made gateway.

Custom development of a gateway can take from 2 to 8 weeks for experienced teams, who follow official guideliness of MetaQuotes and have already produced several solutions for Metatrader platforms.

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