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#1 12-08-2019 08:07:45

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3050

13 years of reliability! What's new with MetaTrader today?

13 years of reliability! What's new with MetaTrader today?
For over thirrteen years, foreign exchange traders and the MetaTrader 4 trading platforme have been a successful pairing. MetaQuotes's platforme has been especially successful thanks to the use of EAs (Expert Advisors) in the context of automated trades.

In Southern Asian countries and some Chinese regions, trading robots are widely used, and the compatibility of the MT4 trading platforme with them has fostered loyalty between traders and brokers.

Thanks to widespread adoption of MT4 by leading forex and CFD brokers in major financial centres (Paris, Tokyo, Sidney, etc.), the trading application is very well tied to the market, despite the simultaneous development of competing internally-developed trading applications (such as XTB brokerage's xStation). 
MT4 also proves useful in the context of brokerage acquisitions, which are frequent, and in which a broker's clients are redirected to the new umbrella broker.

As MetaTrader 4 is easily accessible by all brokers whether big or tiny, no trader can ignore its existance. As such, it has also become a sort of default platforme that traders expect when they look for a new broker.

Even though the market is evolving due to harsh new regulations (ESMA ring a bell?), new leverage limits, etc., brokers that are setting up shop are still relying on MetaTrader to build their foundation.

Benefits and drawbacks also exist

Thanks to MetaTrader, brokerages don't need to have a dedicated technology development budget. In addition, MetaTrader 4 also supports the use of robots (Expert Advisors), which are widely used, especially in Asian-Pacific territories.

However, despite easy access to the profitable trading industry (as a MetaTrader licence only costs around $4,500), brokers could suffer should MetaQuotes suddenly decide to remove its software from the market. In an environment where new regulations and in-house expenses are on the rise, it is harder and harder for brokers to compete when there are thousands of other similar competitors out there targeting the very same clients.

In China, clients are often not just traders, they are "investors" and IBs (introducing brokers) often play a major role as they tie in individuals' accounts to a master account. In turn, the introducing broker trades on their behalf via a master MAM or PAMM-type of account that is automatically operated by the introducing broker's expert advisor.

This was initially a rather cheap and simple solution for both brokerages and introducing brokers, since they could set up shop in Cyprus, apply for a private label MT4 licence and then make tons of money by signing up introducing brokers among the Chinese.

Over the past 13 years of MT4 market dominance, other systems have appeared (including API connections to broker IT systems), but they are nowhere close to putting a dent to MT4's hold on the market.

One final conclusion is that brokerages that can serve clients in their own region are less dependent on MT4, while brokerages that are based in major centres such as London or New York and that want to expand into other territories with new client bases are more dependent on MT4.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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