MetaQuotes, the developer of the widely popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, has been increasingly enforcing restrictions that prevent brokers from integrating TradingView with MetaTrader. According to insights gathered from Finance Magnates, this strategic move reflects MetaQuotes’ desire to maintain control over its platform ecosystem and limit competition.
MetaQuotes’ Restriction on Third-Party Integration
MetaQuotes’ terms of use for MT4 and MT5 platforms include clauses that prohibit integration with third-party trading environments. While TradingView is not explicitly mentioned, the restrictions encompass all non-MetaTrader trading platforms. Brokers connecting TradingView to MetaTrader, even indirectly via a third-party technology stack, must first obtain approval from MetaQuotes.
One broker explained, “Any trading apps that do not rely on MetaQuotes’ API cannot be connected to MetaTrader. Such third-party connections would be a violation of the contract.”
The enforcement of these restrictions began last year, and since then, brokers have faced challenges in aligning TradingView with MetaTrader, despite TradingView’s immense popularity as a front-end platform.
The Appeal of TradingView for Brokers
TradingView is renowned for its advanced charting tools and user-friendly interface. With over 90 million users globally and 218.2 million visits recorded in November, it has become a hub for traders and investors. The platform integrates with 83 brokers and other trading platforms, enabling users to execute trades directly from its environment.
For brokers, offering TradingView integration is a significant value proposition. One brokerage highlighted, “TradingView integrations provide unparalleled value for brokers to attract and retain clients. Unfortunately, our plans were scrapped due to our agreement with MetaQuotes.”
Despite its dominance in the CFD trading industry, MetaQuotes is wary of allowing its users to adapt to TradingView’s interface. “MetaQuotes does not want traders getting used to any other front ends,” explained Jon Light, Head of OTC Platform at Devexperts.
TradingView’s Position as a Front-End Platform
Unlike full-fledged trading platforms, TradingView acts as a charting and order execution interface while relying on other platforms, like MetaTrader, for backend operations. This structure has made it an appealing choice for brokers looking to provide seamless charting and trading experiences.
A broker described the process: “The TradingView platform is technically a chart + ‘send order’ function. Everything else is handled by the broker, whether through their proprietary platforms or third-party platforms.”
MetaQuotes’ Strategic Decisions
MetaQuotes has taken steps to reinforce its platform dominance by enforcing integration restrictions and increasing licensing fees for MT4 and MT5 by at least 20 percent starting next month. This move comes at a time when trading volumes on MT5 are predicted to surpass those on MT4, signaling a shift in the market.
While MetaQuotes’ actions may seem protective, they limit brokers’ ability to diversify their offerings and compete effectively. A brokerage representative noted, “TradingView is versatile and is the only platform that can challenge MetaTrader’s dominance.”
Trading Platforms See the Value in TradingView
While MetaQuotes remains cautious, other trading platforms recognize the advantages of integrating with TradingView. Rauan Khassan, TradingView’s Vice President of International Growth, stated:
“We’ve already seen that this approach brings net positive added value. Instead of distributing the same audience between an increasing partner list, we actively increase the total participating audience volume and number.”
Conclusion
As brokers increasingly look for alternatives, the restrictions imposed by MetaQuotes may pave the way for competitors like TradingView to gain more traction in the market. TradingView’s seamless integration and advanced functionalities make it a strong contender in the trading industry, challenging MetaTrader’s longstanding dominance.
Source: Insights and data for this post are based on a detailed report from Finance Magnates. For more information, visit Finance Magnates.