Trade and transaction reporting service provider TRAction Fintech is announcing a new product. The company developed an integrated solution to assist brokers using the MetaTrader 5 trading platform.
Brokers will be enabled to submit their daily transaction reporting under the ASIC, EMIR, and MiFIR regimes.
TRAction Fintech has been on the market with MT4 solutions for a while. The accelerating adoption trend of the new trading platform from MetaQuotes prompted the firm to roll out the update.
The regulatory reporting firm also closely works with clients to address the technical difficulties that they may encounter, to ensure the trade reporting for MT5 goes smoothly.
Rising Adoption of MT5
The change comes as brokers across the EU are looking at new ways to counteract the industry-wide reduction in CFD & FX trading volumes. The introduction of MT5 allows them to deliver a greater range of products, including exchange-traded derivatives and equities.
“Over the past 6 months we have seen existing clients and new clients move to either an MT5 only model or adding MT5 to their existing suite of platforms,” commented Quinn Perrott, co-founder of trade reporting agent, TRAction Fintech.
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He elaborated that the domination of MT4 seen only a year ago seems to be coming to an end. The multi-asset nature of MetaTrader 5 enables brokers to diversify their offerings at a critical time.
“We are definitely seeing a large upswing in adoption of the MT5 platform. We know that some of this can be attributed to the recent MetaQuotes policy of not selling MT4 licenses to new brokers. However the feedback we receive is that this is only part of the picture,” Perrot said.
The adoption of the fifth generation of the MetaTrader suite carries significant benefits to brokers. The next generation software suite adds significant scalability and security.
Chicken and Egg Situation Resolved
Until last year, the fifth generation of the MetaTrader platform did not gain material market share since its launch in 2010. The main trigger for the rising rate of adoption was the deployment of hedging capabilities and the policy of MetaQuotes to encourage brokers to switch from MT4.
The reluctance of traders to migrate their algorithmic trading programs to the new MQL5 language caused brokers to be very slow in rolling out the platform. The regulatory changes across Europe appear to be slowing this trend down and migration the MT5 has been gradually accelerating.
At present MT5 adoption seems to have reached a critical mass since some brokers are comfortable to offer it as their only trading platform.