MetaQuotes Announces Licensing Fee Hike
MetaQuotes, the developer behind the widely popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, has informed its clients about an increase in licensing fees effective January 1, 2025. While the exact pricing details remain undisclosed, industry insiders anticipate a rise of at least 20%, marking a significant development for brokers and white-label providers relying on these platforms.
Notification Sent to Clients
MetaQuotes has sent letters to its clients, stating that the fee adjustment stems from higher operational costs.
“Our commitment to providing you with the highest quality products and services has led to an increase in operating costs, which, ultimately, necessitated this price update,” reads the notice shared with brokers.
Both MT4 and MT5 clients received similar letters, indicating that the changes will apply across the board. While MetaQuotes typically keeps its licensing fees private, sources estimate that brokers currently pay an average of $10,000 per month for a single license, with costs increasing to $15,000 to $20,000 for brokers utilizing both MT4 and MT5. Additional fees for white-label platforms can add $3,000 to $5,000 to the monthly bill.
MetaQuotes’ Dominance in the Trading Industry
MetaQuotes holds a near-monopoly in the over-the-counter (OTC) trading sector. Its MT4 and MT5 platforms dominate the landscape, with MT5 becoming the focus as the company pushes clients away from the older MT4. In fact, MetaQuotes has stopped issuing new licenses for MT4, further consolidating MT5 as its flagship product.
Despite its market dominance, MetaQuotes has faced increasing criticism for limiting access to its platforms. Earlier this year, the company cracked down on prop trading firms offering services to U.S. residents via MetaTrader. This move forced many platforms to pivot quickly, integrating alternative trading solutions to maintain operations.
The Rising Demand for Alternatives
MetaQuotes’ stricter policies and fee hikes are driving brokers and prop trading platforms to explore alternatives. Many providers have started offering multiple trading platforms, ensuring MetaTrader is just one option in their suite.
Interestingly, prop trading firms largely operate MetaTrader on demo servers, meaning MetaQuotes does not profit from these activities regardless of the trading volume. This dynamic has further pushed prop firms to diversify their offerings with competing platforms.
What This Means for the Industry
The fee increase, combined with MetaQuotes’ stringent policies, could reshape the trading platform landscape. While brokers relying solely on MetaTrader face higher costs, the demand for competitive alternatives like cTrader, DXtrade, and others could intensify.
Key Takeaways for Brokers and Traders:
- Increased Costs: Brokers may pass these additional costs to traders through higher fees or spreads.
- Growing Alternatives: Diversification of trading platforms is becoming a necessity for brokers.
- Focus on MT5: With MT4 licenses no longer issued, brokers still using MT4 must plan transitions to MT5 or alternatives.
The move signals MetaQuotes’ confidence in its dominance but also opens opportunities for competitors to gain ground in the trading platform market.