Those who are new to the world of online forex & CFD trading often come to us with the following question: is MT4 a forex broker? Even if you have only traded forex & CFDs for a short period of time, 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 new 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?
MT4 is the trading technology that forex brokers offer to their clients for the purposes of trading. The ability to launch a forex broker cost effectively using what is referred to as a white label technology is the main reason MT4 grew in popularity.
Since we are on the subject of new terminology, you may ask, 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. It’s worth repeating that 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 several alternatives to MT4/MT5 that are more cost effective yet offer the same advantages as MetaTrader. Furthermore, many of the alternatives to MetaTrader are easier to operate from a technical standpoint and offer more flexibility. 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.
