MetaQuotes Has Been Ruling for 20 Years, Is It Time to End?

In 2005, MetaQuotes rolled out its MetaTrader 4 (MT4), an electronic trading platform, quickly becoming the go-to software for online retail forex traders. Nearly 20 years on, it's worth reflecting: What mobile phone were you using in 2005? A Nokia or a Motorola, perhaps? Back then, Windows XP was the dominant operating system, a platform that Microsoft discontinued support for a decade ago, in 2014.

So, how has this two-decade-old software managed to thrive in the niche market of retail forex trading? In light of recent happenings, such as Apple's removal of MT4 from its App Store and the crackdown on "grey labeling" prop firms, is there a growing trend among brokers to move away from MTs?

The Pre- and Post-MetaTrader 4 Eras

MetaQuotes launched MT4 in 2005, but few people ever heard of MT3, MT2, or MT1? After its founding in Kazan, Russia, in 2000, MetaQuotes in fact developed three versions of its trading platform, yet only version 4 was released and made big.

Between 2007 and 2010, MT4 gained immense popularity among traders, driven by a wealth of third-party scripts and plugins specifically designed for it. This surge in popularity forced many brokers to adopt MT4 as a replacement for their own proprietary software.

In October 2009, MT5 was officially introduced. However, it remains an open secret that MT4 is still far more popular and widely accepted than MT5. A 2019 survey found that 85% of traders were using MT4, with MT5 trailing closely behind.

Then came the significant moment in September 2022 when Apple abruptly pulled MT4 and MT5 from its App Store​. This was compounded by MetaQuotes' request earlier this year for several brokers, including Eightcap, to sever ties with their "grey labeled" prop firms​. Fazzaco has been on the ball with comprehensive coverage of these developments.

A Shift in Broker Attitudes Over Two Decades

In a recent article, columnist David Kimberly referenced an interview with an Admirals executive, comparing it to the same executive's remarks made a decade ago at Alpari. This juxtaposition underscores a notable shift in broker attitudes toward MTs. FPFX CEO Justin Hertzberg suggested that we may soon see a new generation of retail traders who no longer regard MT4 or MT5 as the default forex trading platforms.

On one hand, large forex brokers such as IG, CMC Markets, and Plus500, buoyed by strong R&D capabilities and financial clout, have ditched MetaQuotes software in favor of bespoke systems and apps.

On the other hand, the influx of new competitors has opened doors for brokers looking to step away from MTs. For many brokers scaling back their reliance on MTs, the main gripe is the platform's outdated design, which doesn't quite meet the modern user's craving for simplicity and user-friendliness - evident in its dated logo, a stark contrast to today's sleek flat design trends.

Moreover, over recent years, MetaQuotes' policies have been anything but stable, lacking both stability and transparency. Numerous brokers have reported feeling hard done by, stating that when they reached out to MetaQuotes' support for the same issue, the responses were all over the map, often hinging on luck. Consequently, uncertainty has become a significant sticking point for MetaQuotes.

Transition Won't Happen Overnight

Despite the various trends emerging within the industry, MT platforms are still regarded as a standard among brokers - a tool they cannot afford to be without, even if clients have the option to choose alternatives.

Additionally, MTs has evolved into a highly customisable system, giving it a certain "geek" appeal. In summary, a complete transition away from MT platforms is unlikely to happen anytime soon.