Is MetaTrader (MT4) 4 Obsolete?
Even if you have limited experience in the realm of forex & CFD trading, then you have most likely encountered MetaTrader 4 (MT4) during your trading career. After all, MT4 is the most recognizable trading platform in the world of forex and CFD trading.
Given the legacy of the technology, many traders often wonder if MetaTrader 4 is obsolete? In today’s column we’ll discuss this question at length.
How Long Will MT4 Be Totally Obsolete?
While it’s challenging to predict an exact timeframe, it’s important to note that the transition from MetaTrader 4 (MT4) to newer trading platforms such as MetaTrader 5 (MT5) is an ongoing process. The popularity of MT4 remains significant, with a large user base and a wide range of available tools and resources.
That being said, as technology advances and market dynamics evolve, there may come a point where MT4 becomes less prevalent and eventually considered obsolete. Several factors can contribute to this transition, including the discontinuation of support and updates for MT4, the introduction of new regulations or trading requirements that favor newer platforms, and the growing demand for advanced features and functionalities.
Will Forex Brokers Stop Using MT4 Anytime Soon?
MT4 has been a popular and widely adopted trading platform for many years, offering a range of features and capabilities that traders are accustomed to. However, it’s worth noting that MetaQuotes, the company behind MT4, has introduced a newer version called MetaTrader 5 (MT5), which offers additional features and expanded capabilities.
The timeframe for MT4 to become entirely obsolete will depend on various factors, including the adoption rate of alternative platforms, the preferences of brokers and traders, and the pace of technological advancements in the industry. It’s worth noting that the transition process can take time due to the significant user base and existing infrastructure built around MT4.
What Alternatives Are There to MT4?
There are several alternatives to MetaTrader 4 (MT4) that offer robust trading platforms with various features and capabilities. We consider the Condor platform to be the best alternative. Not only does the Condor FX Pro Trading Platform offer a variety of features for new and advanced traders alike, it is cost effective and easy to set up.
To check out a demo of the Condor platform, contact us today!
The Differences Between MT4 and MT5 Trading Platforms: An In-Depth Comparison
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular trading platforms in the forex industry. While they share many similarities, they also have distinct differences that can impact traders’ experiences. In this post, we will compare MT4 and MT5 to help you choose the best trading platform for your needs.
#1. User Interface
One of the most significant differences between MT4 and MT5 is their user interfaces. MT4 has a simple, user-friendly interface that is easy to navigate, making it an excellent choice for beginners. MT5, on the other hand, has a more complex interface with more features and customization options, making it better suited for experienced traders who want more control over their trading environment.
MT4 is known for its user-friendly interface and ability to run multiple charts and indicators. It also supports algorithmic trading through Expert Advisors (EAs). MT5, on the other hand, offers additional features such as the ability to trade more asset classes, improved backtesting capabilities, and a built-in economic calendar. The platform also supports more order types, including Stop Limit orders, and has a depth of market (DOM) feature that shows real-time order book data. Overall, MT5 offers more advanced features and is a better fit for professional traders, while MT4 is a more simple and straightforward platform that’s better suited for beginners.
#2. Trading Features
Both MT4 and MT5 offer a wide range of trading features, such as real-time market quotes, customizable charting tools, and automated trading through expert advisors. However, MT5 has more advanced features, such as a built-in economic calendar, a greater number of technical indicators, and more timeframes.
Despite being released in 2010, MT5 has not been able to overtake the popularity of its predecessor, MT4. This is largely due to the fact that MT4 has a large market share and is widely used by traders and brokers alike. While MT5 has been gaining traction in recent years, many traders still prefer MT4 for its simplicity and familiarity. This means that traders who want to access a wider variety of markets may need to use MT5, but those who are comfortable with MT4 will find it easy to use and widely available.
#3. Market Coverage
MT4 is primarily used for trading in the forex market, while MT5 provides access to other financial markets such as stocks, futures, and options. If you’re interested in trading other markets in addition to forex, MT5 may be the better choice for you.
#4. Programming Languages
MT4 and MT5 have different programming languages, which means that EAs and indicators created for one platform may not work on the other. This can be a significant consideration for traders who rely heavily on automated trading strategies. In addition, some brokers only offer one platform or the other, which means that traders may need to switch brokers if they want to use a specific platform. However, there are some brokers that offer both MT4 and MT5, which can provide traders with greater flexibility and choice.
#5. Backtesting
Backtesting is a crucial tool for evaluating the effectiveness of trading strategies. While both MT4 and MT5 provide backtesting capabilities, MT5 has a more advanced backtesting system that allows traders to backtest multiple currency pairs and timeframes simultaneously.
The Forex Consulting Team – Your Partner for Guidance in FX Trading Technology
In summary, MT4 and MT5 are both excellent trading platforms, but they have different strengths and weaknesses. If you’re a beginner trader looking for a simple and user-friendly platform, MT4 may be the best choice for you. If you’re an experienced trader who wants more advanced features and customization options, MT5 may be the better option. Ultimately, the choice between MT4 and MT5 will depend on your trading style, preferences, and goals.
How to Start a Forex Broker?
Starting your own Forex broker can be a challenging but rewarding endeavor. The Forex market is one of the most popular and lucrative markets in the world, with a daily trading volume of over $5 trillion. It offers an opportunity for entrepreneurs to start a profitable business and potentially achieve financial freedom.
The First Step: Planning Out Your Forex Broker
Before you start any business venture, it is essential to have a solid business plan in place. Your business plan should outline your objectives, target market, budget, and strategies for acquiring and retaining clients. A well-written business plan can help you secure funding, attract potential investors, and guide your decision-making process as you build your brokerage. We’ll cover the specifics of the business plan in the column.
The Next Step: Develop Risk Management Strategies
Once you have a thorough understanding of the market and the regulatory requirements, you can start setting up your Forex brokerage. The first step is to decide on the business model. There are two main types of Forex brokers: market makers and ECN/STP brokers. Market makers make money by providing liquidity to their clients, while ECN/STP brokers earn a commission on each trade.
Managing risk is a crucial aspect of running a successful forex brokerage. Develop robust risk management strategies, including margin requirements, stop-loss orders, and hedging strategies. Implementing these strategies can help protect your clients’ investments and mitigate the risk of losses for your brokerage.
Selecting the Best Licensing Jurisdiction
After deciding on the business model, you need to choose a jurisdiction to register your Forex brokerage. The jurisdiction you choose will impact your regulatory requirements, tax obligations, and operational costs. Some of the popular jurisdictions for Forex brokers include Cyprus, the UK, Australia, and several offshore jurisdictions.
Technology – An Important Consideration
The next step is to set up the infrastructure for your Forex brokerage. This includes setting up a trading platform, a website, and a customer support system. You can either develop your own trading platform or use a white-label solution provided by a third-party provider.
Selecting the right trading platform is essential for providing your clients with a smooth and efficient trading experience. Popular trading platforms include MetaTrader 5 (MT5) and Condor, both of which offer a wide range of features and customization options. You can also consider other trading platforms that offer unique features or cater to specific markets.
Forex Consulting – Your Partner for Starting a Forex Broker
Starting your own Forex brokerage requires a significant investment of time, money, and effort. However, if done correctly, it can be a profitable and fulfilling business. With the right mindset, knowledge, and resources, you can start your own Forex brokerage and potentially achieve financial freedom.
We understand the importance of selecting the right white label provider to ensure your brokerage has access to the necessary tools and resources to succeed in the highly competitive forex market. Our team is committed to providing personalized guidance to help you make informed decisions that align with your business goals.
If you’re ready to take the first step towards launching your brokerage, don’t hesitate to get in touch with us today. We’re excited to work with you and help you achieve your business objectives in the world of forex and CFD trading.
What are Some Alternatives to MT4 / MT5?
Now that MetaTrader 4 and MetaTrader 5 are no longer available in the iPhone store, many traders and brokers alike are seeking alternatives to MetaQuotes software. The recent changes by the Apple Store to ban MT4/MT5 has now drawn the attention of many software providers.
FDCTech – The Most Cost Effective MT4/MT5 Alternative
Having reviewed many platforms, we believe that FDCTech provides the best alternative to MetaTrader 4 and MetaTrader 5. Their flagship trading platform, known as Condor, has taken the market by storm due to its ease of use, robust back office, and cost effectiveness. Finally, FDCTech is the only provider we know of that can fully support prop trading.
Why Consider FDCTech as an Alternative to MetaTrader 4 / MetaTrader 5?
First, the Condor system allows brokers to fully customize the business from top to bottom. Unlike MT4/MT5, the front end can be completely changed to reflect a trading platform fully unique in the market place. This is a major advantage for brokers interested in promoting their own branding.
Secondly, the Condor system does not allow EAs or algos. While this initially may be viewed as a drawback, ask any broker and they will tell you that algos cause too many headaches. Most amateur MT4/MT5 traders run EAs which attempt to arbitrage pricing or take advantage of other system inefficiencies, in essence these are not trading strategies but ways to cheat a broker out of money.
Finally, the Condor system is cost effective and supports the growing prop trading market. Whether it is a traditional broker or prop trading, FDCTech is the ideal technology provider for the FX & CFD industry.
Guidance in Selecting Alternatives to MT4/MT5
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If you would like to have a full demo of the Condor system, contact us today to arrange a presentation!
MT4 & MT5 No Longer Available for Prop Trading Firms
The prop trading industry took an interesting turn of developments this week as MetaQuotes, the provider of MT4 and MT5 has stopped issuing new white labels. Effectively this means that proprietary trading firms can no longer start their own companies with MetaQuotes software.
The reason behind the decision by MetaQuotes is unclear. With this in mind, startups looking to launch their own forex or crypto prop firms must now seek alternatives.
Prop Trading Alternatives to MT4 and MT5
Our team of industry consultants can assist in providing alternatives. In fact, we have a complete software suite that we can present to you. Our Forex & Crypto Proprietary Trading technology offers everything need to successfully launch your own prop firm:
- Pre-made challenges,
- Auto-funding options
- Integration with most PSPs and LPs.
- Mobile, desktop, android
- Supports Subscriptions, A Book and B Book
Contact us Today to Book a Demo
To check our custom prop trading technology, simply contact us today to book a demo!
How Do Forex Brokers Make Money?
Any trader who has opened a live forex trading account for even a short period of time has probably asked themselves how forex brokers earn their money. This is a common question for those new to FX trading, which is why we wish to explore the subject in greater detail.
2 Main Avenues of Revenue for FX Brokers: DD & STP
There are basically 2 ways in which forex brokers generate revenue. We’ll briefly outline them and then dive into specifics. The first method is known as STP or straight through processing. With this approach the broker earns a certain dollar value per trade. The revenue model is rather simple: the greater the number of trades, the more revenue earned.
The second method is often referred to as a dealing desk (DD) model or market making. In this model the broker assumes the full risk of each trader received. In other words, if a trader buys EUR/USD in the trading platform, then the broker in effect is selling EUR/USD to them. To better understand, just imagine the mirror image of any trade you’ve ever placed with the potential loss or profit being on the book of the broker rather than yourself. In other words, the future movement of the currency pair determines the profit or loss for the broker.
How Forex Brokers Make Money with the STP Model?
STP stands for Straight Through Processing, which is just a fancy way of describing the flow of an order between a trader and broker. In this model, when a trader opens an order, ie buy EUR/USD then the broker also buys EUR/USD in their trading account, tacking on either a commission or spread mark up. The order in our example is sent to one of the liquidity providers the broker works with, meaning that no financial risk is undertaken with this business model.
As previously mentioned, brokers operating under the STP or NDD (No Dealing Desk) model must rely on client volume to earn revenue, the more volume, the more revenue. Many traders perceive this model as advantageous since the interest of the broker is aligned with the client.
The Dealing Desk Model: How do Brokers Earn from a Dealing Desk Set Up?
As already outlined, the dealing desk model involves a broker assuming the full risk of an order. With such a model the broker can earn from the losses of a client, although such an explanation is far too simple. Generally speaking a broker has more than 1 client so performs the same market analysis traders do. Based on the total exposure, ie the aggregate number of orders, the broker will decide if it is wise to exit the market via hedging or leave the exposure open. Profit is made by effectively managing all orders coming in.
One way to understand the DD model is to imagine a trading account where orders constantly appear in your account rather than being initiated by the trader. An effective risk management team will know how to manage this book of orders to mitigate risk and generate profits. For this reason, a DD model doesn’t imply that losses of clients are purely the revenue of the broker.
Forex Consulting – Your Partner for Selecting a Reliable Forex Broker
Thank you for checking out our article. The summary above is a very general subject, to fully understand both concepts one must engage further on the topic. Nevertheless, we find the outline satisfactory for a basic understanding of how forex brokers earn revenue.
If you would like guidance in selecting a forex broker, our team is here to assist you. Don’t hesitate to reach out to us for further guidance.
Introducing Broker vs. White Label – What’s the Difference?
If you are looking to launch your own online FX trading business, it’s important to understand market terminology. While white label providers are very similar to introducing brokers, there are also key differences that one should understand before diving in.
Definitions of Introducing Broker and White Label
Before we outline the differences, it’s important to define both terms. A white label is basically a customized, branded version of a forex trading platform. Many brokers use MT4 and MT5 but there are alternative options as well.
An introducing broker, on the other hand, is a referral agent to either a forex broker or a white label. Unlike a white label, an introducing broker doesn’t control any technology.
How Do White Labels Differ from Introducing Brokers?
As we already mentioned, a major difference between these two concepts centers around technology. A white label provider operates technology while an introducing broker does not. In the case of an introducing broker, they must rely on the technology of either a white label provider or forex broker.
Another key difference is that a white label can generate more revenue as they are acting as their own brokerage while an introducing broker is always a referral agent to a broker or white label. Introducing brokers can make very good money but their options are limited when compared to a full fledged forex broker.
Finally, introducing brokers generally don’t have to worry about client onboarding or approval, this is handled by the white label. This means that an introducing broker can focus just on sales and marketing. It also makes it more cost effective to start off the business as an introducer.
Forex Consulting – Guidance in Becoming a White Label Provider or Introducer
Our team of industry experts remain at your dispoal should you wish to start your own forex white label or become an introducing broker.
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What is a Forex Introducing Broker (IB) / Affiliate?
Even if you just begun trading forex, you’ve most likely seen that your broker offers an affiliate / introducing broker programme. Today we’ll outline how an IB / forex affiliate program works and also provide some tips for getting started.
Understanding the Forex Affiliate / Introducing Broker Business Model
The reason that you’ll often see forex brokers offering an affiliate / IB model is that direct marketing campaigns are not the only way that forex brokers generate revenue. An affiliate program is another way for a forex broker to grow their business. The advantage of such a model is that traders or those with marketing experience can generate additional income by receiving compensation for the new clients they refer, that’s essentially the IB model.
Different Forms of Compensation
introducing broker commission will vary from broker to broker. Some firms will pay a fixed price per new account signed up while others work purely on volume. The difference really depends on the regulatory status of the broker, the size of the IB and other factors. If this is something new to you, we can help you guide you in the process of becoming a forex IB.
An Entrepreneurial Approach to Forex Trading
Becoming a forex IB / affiliate is an excellent way to take advantage of the growth of online forex trading. Those who are looking to start their own brokers are encouraged to begin the process as an IB. You’ll gain the necessary experience as it relates to marketing without the overhead of regulation, staff, and reporting costs that can often burden new start ups.
Get Access to the Best Introducing Broker Program!
Our team at Forex Consulting is happy to guide you along each and every step of becoming an IB. In addition to guidance, we can help you find the best forex ib program to partner with.
To learn more, don’t hesitate to contact us today!
Is MetaTrader 4 (MT4) a Forex Broker?
Those who are new to the world of online forex & CFD trading might wonder whether MT4 is a forex broker. After all, even if you have only traded for a little bit, most likely you’ve come across the term MT4 before. With so many acronyms and jargon in the online forex trading industry, it’s normal to be overwhelmed with terminology like MT4, MT5, or Expert Advisor.
The short answer to this question is no, MetaTrader 4 is not a forex broker. Often abbreviated as MT4, MetaTrader 4 is a software platform that is used by investors to trade forex & CFDs. To help new traders understand why MT4 is not a forex broker, we’ll explain how forex brokers use technology like MT4 to run their brokerages.
Why Is MT4 (MetaTrader 4) Not a Forex Broker?
As mentioned, MT4 is the trading technology that forex brokers offer to their clients for the purposes of trading. MT4 grew in popularity by offering new forex brokers the opportunity to cost effectively lease their technology, a concept most commonly referred to as a white label.
What is a white label? In simple terms, it’s a fully customized and branded version of the MT4 software. The key difference between technology like MT4 and a brokerage is that forex brokers use MT4 in order to launch their FX businesses. MT4 is not a broker, rather a tool used by brokers to offer forex trading to their base of clients.
The MT4 White Label Process
How do new forex brokers take advantage of MT4’s white label technology? In order to use MT4, a new broker must first apply for a white label, a service that our team can also provide assistance with. Upon approval, the broker then provides MetaQuotes with their logo and company details. The end result is a fully branded version of MT4 software that reflects the broker’s logo and company name. This is what is known as a white label. If you’ve ever traded on an MT4 live or demo account, then you’ve already used a forex broker’s white label technology.
Forex Trading Technology is Not Limited to MT4 or MT5
It’s important to emphasize that MT4 and its counterpart MT5 are not the only trading technologies available in the marketplace. There are also alternative FX white label platforms that are more cost effective to lease. Additionally, many of these alternative platforms are both easier to operate and more flexible than either MT4 or MT5. If you are currently looking for a white label provider, our team of consultants can help you to explore some of these alternatives in more detail.
Forex Consulting – Forex Trading Technology Consultation & Expertise
Our many years of experience in the realm of online forex & CFD trading make the Forex Consulting team an ideal partner to assist your new broker in selecting a forex white label provider. Whether you wish to explore MT4/MT5 or consider an alternative trading platform, we are happy able to guide you along each step of the way.
Contact us today to get started!
Is There an Incentive to Be an Unlicensed Broker?
While performing research on trends in the online forex & CFD trading industry, we noticed that many have queried Google to determine whether there is an incentive to be an unlicensed forex broker. From our perspective, the answer is yes.
In today’s post, we’ll explore some of the incentives to initially start a forex broker without regulation. To get started, let’s consider the costs involved in obtaining a forex broker license.
#1. Cost Savings – One Incentive to be an Unlicensed Forex Broker
A major advantage in launching an unlicensed forex broker is the ability to save money during the early growth stages of the business. Obtaining regulation is expensive because nearly all regulated jurisdictions require a local office, staff, and reporting. Adding paid up capital into the equation, it shouldn’t be a surprise that regulation involves a significant commitment of capital.
We don’t encourage brokers to remain unregulated forever. Instead, we find the beginning stages of a broker’s launch to be incredibly important. In these early stages revenue is minimal which means that all expenses need to be carefully managed. From our perspective, a new forex broker should wait to see some positive revenue before jumping into licensing.
#2. Time Savings – Another Incentive to Launch an Unregulated Brokerage
Not only is regulation costly, it also requires a significant commitment of time. On average it takes roughly 7 – 9 months to obtain a forex broker license and in extreme cases such as licensing in Europe, could be well over a year before the license is issued.
A broker that opts to wait for regulation before going to market could lose out on almost a year of market activity. We once again emphasize that operating unregulated on a long term basis is not wise, however, does make sense in the beginning stages. In this case, launching a forex broker without regulation allows the new business to immediately take advantage of existing market opportunities.
#3. Test Out the Business Viability
An unregulated forex broker has the advantage that it can more easily focus on revenue generation. After all, if the business doesn’t work out in the end, did regulation make a difference?
Almost all of the major forex brokerages that exist in the marketplace today started off their journey as unregulated. The reason is that it makes more sense to test out the viability of the business model before committing more funds to regulation. From our perspective revenue from positive growth should be allocated to licensing, rather than being licensed from day one.
An unlicensed forex broker does not have to worry about the costs or work involved in maintaining a forex broker license. Nor does an unregulated forex broker have to dedicate the time to obtain a forex broker license or put up the necessary capital and other costs. It’s very cost effective and easy to operate unregulated.
Forex Consulting – Guidance in Launching a Forex Broker
Our team has the tools, knowledge, and market know-how to help you start a forex broker from A to Z. We provide the technology, liquidity, and banking services needed to start efficiently and quickly.
To learn more about launching a broker, don’t hesitate to contact us today!
