Test your Broker - Your MT4 Vs. Your Binary Options Broker!
Why should I test my broker?
Testing your broker is very important for your results and strategy. When you create your strategy (or follow one) based on information on a MT4 platform, you need to have a price flow with your Binary Option Broker, that match as much as possible to your MT4 broker. Especially with short term trading this is very important! Therefore you need to test the distance and deviation between prices on your MT4 and your BO broker and find out if your broker has delays in expiration times for your trades.
There mostly will be a difference between quoting, since Binary Option Brokers don’t use spread, but that doesn’t matter as long as deviation in distance between those prices is as low as possible. If there’s a lot of changing deviation, it’s not good and it could be a reason to stay away from this broker!
There always will be small differences, but they should be very small. A difference of half a pip or just a few seconds in price changing, can make or break your trade!
It’s no use testing a strategy, based on MT4, if price differs too much from your trading platform. Setups will not match and your system may not work well with your BO broker.
Another reason to test your broker, is to see if there are strange price flows, especially when opening a trade or when it expires. It’s a good way to find out if your broker manipulates prices or if the platform isn’t accurate enough to work with! This also can make or break your trades (and profit). After all: If price moves crazy all the time, you’ll never find a good place to enter a trade!
Test your Broker
To improve our reviews of Binary Option Brokers, BinaryOptionsThatSuck team partnered with our very own community member SeaSaltmcFish. We also you to participate in our ongoing test about pricing and performance of Binary Option Brokers. We’ve seen already how important testing can be to choose the best Broker, so here’s a challenge to join our efforts: testing price behavior and expiration delays.
Why do we want you to participate?
It’s impossible for us to test live with every broker, so we need you to help us out. Therefore we created a setup for testing. If we all follow the same setup, we will have a powerful project going on! Brokers could be forced to offer better pricing and this will improve trading Binary Options for everyone.
- Record your trading session with a program like Camtasia or another capture program. Set your frame rate to 5 frames/second. No sound to lower file size.
- Preferable is the EUR/USD, but other instruments are also welcome.
- You only need to capture the last few candlesticks on your own MT4 platform, a visible open trade that’s going to expire and the price on your Binary Option Broker. Don’t record your whole screen, but only the part you need!
- Price on your MT4 and your BO Broker should be readable.
- Don’t forget to name your BO broker and MT4 broker and time/date of recording! Best is if time is showing and you put the name of your BO and MT4 brokers on screen.
- Send us your recording of about 15 minutes and we can work it out in our project.
To prevent abuse of this test by scammers or brokers, we do need the exact time and date of trading. It’s also a demand that you have at least 50 serious posts on our forum! It’s not that we don’t trust others, but scammers can be smart, so we need to have some protection against colored testings.
We hope many will join this project, so we can improve our reviews and possibly have an influence on performance of brokers.
Send your recording to: info(at)binaryoptionsthatsuck(dot)com
Post Thanks / Like - 1 Thanks
This is a great step forward! Hope people will join.
Cheers for a genial idea.
Yep, I think this can really make a difference!
I'm testing another set of 8 brokers atm (results will be coming soon), but is is only the main page price.
It's not doable to register and trade live with every broker, so we need to do this together. If a broker changes price when trading live, we would miss that if not captured. It may be some work, but it's a great way to improve trading and results!
When brokers are tested regular, they'll have to be more careful with their pricing and trading binary options may become a little safer for us again.
Last edited by SeasaltMcFish; 03-20-2014 at 08:11 PM.
This is powerful stuff! I know this is why I was killing it on our demo platform for quite awhile, but when I went live with a broker, I lost my small account!
In my opinion: if you can't trust prices shown on the platform main screen, you probably can't trust prices in live trading. However, if prices on the platform main screen are accurate, it doesn't say that prices in live trading are accurate too. That's why this live test is so important.
Also remember that your MT4 platform may use different price feed than mine. Another reason to test your own setup.
Small differences in test results may be caused by this, but Picasso-like graphs not.
First Broker's Quotes Test - AnyOption. Check it out!
For this test, I split each second in 3 for my MT4 platform, to cover every change. Binary Options broker normally don't change their price more than once per second, explaining very fast differences between them and MT4 prices. I used my FxPro MT4 broker, but you should test on your own MT4 to get your own test results for your setups. MT4 brokers also have different quotes. This test is only to find out how trustworthy a system entry/close will be with a specific broker as brokers use their own quotes and therefore there will always be differences.
The Deviation line is the change in distance of the BO broker to the quote of MT4. I lifted the changes with 785, to get the line close to the others, only for comparing sake. In fact, the line shows the +/- difference to the standard difference between MT4 and the BO broker and hovers around zero (0), measured in pipettes.
Tested: 12:25 on March 7th 2014
Shown: Last 3 digits of a 5 digit MT4 broker on the EUR/USD on a 1 minute chart
Max. deviation: more than 20 pipettes/2pip
The sudden change in price is very strange. It looks as if there's a switch turned over that changed the price with about 4 whole pips! Even more strange is the fact that much later in my recording, price switched again! This wouldn't make me happy if I was trading....
Please ask if something is not clear! Comments, remarks, thoughts, concerns, feedbacks, other test, go ahead!
the thread above is showing the difference between AnyOption's quotes and MT4 quotes on FXPro.
ofcourse, the deviation between your own MT4 and AnyOption's might differ. This is only the first test of many our team, members and myself would conduct in the near future.
CommuniTraders members!! Test your own broker!! This is very important information for all of us traders!
Thank you guys for making such an advanced research!
I have several questions before I can understand what you are showing – Firstly what does it mean this measuring unit pipettes? Is it a tenth of a pips?
The horizontal line numbers are points – each one a fraction – third of a second, but what is the vertical line numbers – fraction of a pips or something else?
It look that the difference in the quotes between FxPro and AnyOption in the moment of switch is from 795 to 775 i.e. if I am right the numbers are tenths of a pips about 2 pips.
So it is not a big change but however can affect many short term especially up to 15 minutes trades.
1 pip = 10 pipettes.
The total length of the Graph = 12:25 minutes.
Every second was measured in 3 parts for precision sake, but that's peanuts in this Graph. Normal reaction time of a trader when opening a trade will be about 1 second.
The vertical line numbers are the change in price, showed by the last 3 of 5 digits. So 1.37701 wil be 701. It's easier to write when testing
Most brokers use a 5 digit price, so every horizontal line (i.e. 790, 800 etc) is one pip or 10 pipettes. Sometimes a graph will show a distance of 20 (due to price movements) but it's always in pipettes.
Your example is correct. It would be 2 pips, but in short term trading that's a lot in many trades. If you would lose 10% of your trades because of this difference, it would cost you a lot of money. That's why testing is so important!
Indeed, as long as deviation stays steady it has no effect on your trade, or only a very minor one. I'm wondering what happened at the point where deviation hit 2 pips (referring to anyoption's test). ... Let's not forget we are talking about a split of a second where deviation seemingly crossed the 2 pips lines. Something happened at that specific point. Maybe it was the last second to enter a specific short term trade? Bottom line is, we have a lot to learn from those tests. Help is appreciated (: