Sources: Chinese government blocks major MetaTrader 4 port

Internet port ‘443’, which is a port used for secure web browser communication and is a major connection methodology for MetaTrader 4, has been blocked by the government, with certain brokerages unable to connect to their MetaTrader 4 trading server. FinanceFeeds investigates

blockchain

Today, the Chinese Communist Party has convened in Beijing, and once again, the distribution of information and data via the internet and non-Chinese applications was high on the agenda.

So high on the agenda, in fact, that the government has now blocked access to Skype and WhatsApp, two very popular messaging services, so that access is now extremely restricted from within mainland China.

This was inevitable, and FinanceFeeds made a full report on this today, which can be read by clicking here.

Whilst this perhaps makes sense, as WeChat is now the de facto method of communication between Chinese businesses, and has increasingly been an equally vital communication means for businesses outside China when working with Chinese partners, a further and more grave situation has occurred today also.

FinanceFeeds has received several communications from brokerages in mainland China which have service from suppliers outside of China, stating that the HTTP protocol over TLS and SSL, known commonly as ‘443’, which is a port used for secure web browser communication and is a major connection methodology for MetaTrader 4, has been blocked by the government.

This is a port which is used to connect MetaTrader 4 to trading servers, hence several brokers are now unable to connect from within mainland China.

One of the facets of port 443 is that data transferred across such connections is highly resistant to eavesdropping and interception, hence it is more difficult (although not impossible given China’s sophisticated firewall system) for the government to monitor the flow of data and trading dynamic between Chinese companies and their overseas suppliers given this topography.

Moreover, via the use of port 443, the identity of the remotely connected server can be verified with significant confidence. Web servers offering to accept and establish secure connections listen on this port for connections from web browsers desiring strong communication security.

Once established, web browsers inform their users of these secured connections by displaying an icon — a padlock, an unbroken key, etc. — in the status region of their window. FinanceFeeds was established by experts in the field of institutional connectivity, thus this is a protocol on which our level of understanding is very high.

This is ideal when operating in a free market, however by blocking it, China rids itself of the lack of transparency and ability to monitor the traffic, but also creates a complete inability for some firms to operate their trading platforms.

FinanceFeeds can verify that this restriction has not affected all users of MetaTrader 4 in China, as currently, brokerages which are using MetaTrader 4 and are being supplied with liquidity and connectivity by Western firms with a Chinese base with all of their trading infrastructure hosted on Chinese servers are still operational, and given the government’s ability to scan data at server and hosting level within China, it is likely that these will never be affected.

Conversely, brokerages using connectivity partners or white label providers with no Chinese presence at all risk being completely disconnected from their trading server.

One firm in China explained to FinanceFeeds today “Our clients are fine for the moment, but we are making a back up plan immediately.”

The nature of the usage of the port by brokerages has traditionally been for MetaTrader 4 terminal communication, hence it is vital for the operation of a retail brokerage, however it is clear that China’s government has realized the freedom of information transfer that it provides.

FinanceFeeds will continue to monitor this and report on it as it continues, and will also be happy to advise brokerages on how to mitigate this, should the need arise.

One thing is clear, however, that being the absolute necessity for Western brokers, providers and vendors to have a Chinese entity which is hosted, partially owned and operated from within China.

Those who have already done so and are established within the mainland will stand in very good stead indeed.

Read this next

Retail FX

From Backtesting to Arbitrage: Practical Applications of AI in the World of Retail Trading

In this article, the industry leaders delve into the transformative role of AI in trading.

Digital Assets

FTX claim value soars to 92%, creditor sued for reneging on $58M deal

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

Digital Assets

OKX to remove Tether trading pairs ahead of MiCA

OKX, the world’s fourth-largest cryptocurrency exchange by trading volume, is discontinuing support for tether (USDT) trading pairs in the European Economic Area (EEA).

Digital Assets

Changpeng Zhao is back with new project post-Binance era

Changpeng Zhao, the founder and former CEO of Binance, hinted at a new educational project on Monday.

Digital Assets

IcomTech owners convicted in crypto Ponzi scheme

A New York jury has found David Brend and Gustavo Rodriguez, former promoters of the crypto mining and trading company IcomTech, guilty of wire fraud conspiracy.

Fundamental Analysis

Global FX Market Summary: USD, Gold, FOMC, March 18th ,2024

Central banks take center stage this week with the FOMC meeting being the most anticipated as its decisions could impact currencies and gold prices.

Technical Analysis

EURUSD Technical Analysis Report 18 March, 2024

EURUSD currency pair can be expected to fall further toward the next support level 1.0850 (former minor resistance from the end of February).

Executive Moves

NAGA founder Ben Bilski steps down following Capex.com acquisition

Ben Bilski, German tech entrepreneur and founder of NAGA Group, has parted ways with the company, stepping down from his executive role as Chief Information Officer.

Fintech

Barchart integrates Bid, Offer, and Hedge management into cmdtyView

Streamlining operations for commodity merchandisers, traders, brokers, and analysts, the integrated Bid, Offer, and Hedge management within cmdtyView, Barchart further positions its trading platform as a central hub.

<