Just recently, it was announced that MetaQuotes, the company behind the popular MetaTrader 4 trading platform, will be launching its own third party provider marketplace. It’s kinda like the Apple App Store and Google Play where third party developers can submit their software directly to MetaQuotes to be tested, assessed, and approved.
According to MetaQuotes, the main objective of the decision is to guarantee compatibility between third party software and the MetaTrader trading platform. This hopefully gives users a more seamless and secure trading experience by acting as a bridge between brokers and third party providers with regards to transactions made between the two.
Additionally, MetaQuotes looks to stem recent and future security breaches with the launch of the marketplace. According to Forex Magnates, MetaQuotes claims that certain copy trading providers like Zulu Trade, Myfxbook, Tradency, and Tradeo, have hacked the MT4 platform and violated MetaQuotes’ license agreements.
Zulutrade and Myfxbook denied these claims, but MetaQuotes have already blocked these services from their servers. Meanwhile, Tradency has declared that it has ceased its relationship with the MT4 creator.
The MetaQuotes marketplace will be launched in Q4 2013. Although not a requirement, Metaquotes encourages existing third party providers to involve themselves in the new service.
On one hand, there are a few upsides to having a third party provider marketplace.
First off, it directly addresses the issue of compatibility and reduces software conflicts, as each product will be tested and evaluated by MetaQuotes. At the same time, providers can create products without having to worry about being banned down the line.
Also, forex brokers and traders might feel more comfortable about using a third party product if they see that it has the express backing and approval of MetaQuotes. In turn, this could allow third party developers to tap into a larger market.
But of course, there are also a few potential drawbacks to all of this.
For one, it might increase the cost of production for providers since they will have to undergo MetaQuotes’ review process. We don’t have any confirmation yet as to whether or not participation in the marketplace will require a fee, but expectations are that MetaQuotes will require payment for assessing the product and making it available to brokers.
Second, it raises the barriers to entry for third party developers, which could translate to decreased competition among providers down the line. Decreased competition leads to fewer choices for both brokers and traders, which is a definite negative.
But then again, that’s just my opinion. I’d love to hear what you, my dear readers, have to say about all this. Were you affected at all by MetaQuotes’ decision to block off certain providers? Share your thoughts in the comment box below!