Last week we wrote about a Binary Options MT4 Plugin product announcement from new firm TradeToolsFX. The post was met with a comment from a surprising source about the plugin’s legality (see the post for all the comments). In an interesting twist, following on the response of response of their previous launch, TradeToolsFX has created an updated version of their Binary Options product. Rather than performing as a server side plugin, the new offering runs as a client side Expert Advisor (EA). Similar to other EA’s, users drag and paste to activate the customized binary options EA.
As mentioned last week, MetaQuotes has begun to take a more aggressive stance towards the third-party eco-system that has been developed around its Metatrader product. This has led to the warning of systems which are considered to be infracting on their licensing. The result has been a debate of where exactly does MT4’s license begin and end and where do users have free terrain to create changes. As such, being part of the larger issue, the TradeToolsFX MT4 product becomes the first test case for brokers and users to see how their product will ultimately be received by the market in both its ‘illegal’ and seemingly legal EA form.
Last Wednesday on Forex Magnates, TradeTools FX announced an enhancement for the MT4 platform that made it possible for a Forex broker with an MT4 license to offer Binary Options trading alongside FX, CFDs, Metals, Commodities, etc. with the FX LITE MT4 Binary Option plugin. While we received plenty of positive feedback from brokers and even retail traders, one company was not very excited with our announcement – MetaQuotes Software Corp.
To recall, MetaQuotes posted the following comments on Forex Magnates:
“Unfortunately, TradeTools FX directly violates MetaTrader license agreements, modifies programs and is prohibited for use.
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No Modifications: You will not undertake, cause, permit or authorize the modification, translation into other languages, creation of derivative works, reverse engineering, decompiling, disassembling or hacking of the MetaQuotes’ Software or any part thereof. You will also not create other software based on the MetaQuotes’ software.
Not adapt, reproduce, enhance, translate, reverse engineer, decompile, disassemble or otherwise modify or engage in any other similar manipulation of the System or any portion thereof without the Licensor’s express prior written approval.”
These comments surprised us a bit since we feel that incorporating Binary Options within the MT4 platform will ultimately lead to Binary Options brokers purchasing new MT4 licenses which would result in more White Labels plus the accompanying monthly support fees.
However, the MetaQuotes License Agreement is very broad and we respect their right to protect their Intellectual Property. Our attorney is reviewing the language in the end user licensing agreement and how it relates to our Binary Options solution.
Nevertheless, our team of talented developers has already engineered an alternative solution that utilizes the popular Expert Advisor feature to offer Binary Options trading on MT4. Rather than instructing the client to run our Binary Options extension as a standalone application, the screenshots illustrate how the client simply enables the TTFX BO Expert Advisor to activate Binary Options trading.
The TTFX BO solution does not require a third party solutions company and can be easily integrated into an existing MT4 infrastructure for brokers not looking for payment processing services, website development or a CRM solution.