A Shift to Open Platforms in Forex Autotrading
MetaQuotes’ recent aggressive policy of using their MT4 leverage in order to push brokers to abandon established auto trading platforms.
MetaQuotes’ recent aggressive policy of using their MT4 leverage in order to push brokers to abandon established autotrading platforms in favor of their own signals solution may in reality be a blessing in disguise for the Forex industry. Their actions are about to bring a long-needed change from a closed ecosystem to a more open trading environment.
As is typical to a monopolistic player, Metatrader is trying to control both the trading and signals markets and exercise a suffocating level of pressure on brokers. The first results are already visible: New platforms and established players with open philosophy are gaining significant traction and see their market share increasing. Additionally, reputable brokers that have their own proprietary trading platforms are not affected and enjoy unique flexibility in their actions, a critical advantage that MT4 dependent brokers do not share.
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And I pose the million dollar question: what is the value of a broker that has a proprietary platform vs a broker with MT4 only? The MT4 broker with no ability to connect via an API, just inherited a new competitor: MetaQuotes! Now competing with brokers, when is trying to mess with broker partners. What is the value of a broker with MT4, when all the future business model could be REJECTED by METAQUOTES?
Our info shows that MetaQuotes is blocking over a 100 companies with social services. Anyone with a website with customers with a cloud EA service? Now it’s blocked. Can you believe that? Metatrader doesn’t help the industry to evolve. In every industry new services are popping up and are upgrading the experience. MetaQuotes will block those companies, because they see it as competition.
Our calculations indicate that ZuluTrade plus all social services have introduced over $1 billion in new deposits to brokers. All new deposits will now shift to non MT4 brokers. The social industry is growing every year and MetaQuotes is not going to be a part of it.
To bring the issue into right perspective – providers of Social Trading ( such as ZuluTrade ) route orders to MT4 Servers for execution, using the MT4 API. As long as the MT4 Server API is not an open API, Meta Quotes are in their right to prohibit others using their proprietary API to the MT4 Server. Thus, it is not Meta Quotes who is the one being illegal. However, one should assume that when buying a MT4 Server, that one should be able to freely connect external platforms without asking Meta Quotes, but this is another story. I personally… Read more »
As a response to: “How about accusing social trading platform firms of hacking the protocol?”. — I think it is not the issue who legally challenge the IP right of Meta Quotes, but the fact that external signal providers connect to the Meta Trader Server, and execute orders. —- We must not forget, that the MT4 server has brought a standard to the FX business, and has probably been one of the main reasons for the growth of the FX business since 2005. Having said that – having such almost exclusivity , also imply a responsibility – I personally do… Read more »
It does not seem like this is happening, many providers of alternatives to the MT4 server and backoffice are available, but they are all running their own show.
Main problem is most of these providers have build their solution up around the MT4 environment, and are framed in the MT4 environment. Many LP providers/brokers do not even have a backoffice system.
The change has therefor to come from the LP providers and prime brokers, in terms of full featured backoffice applications.
Regards Soren Lanng, TickCOM.