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-   -   Brokers and MetaTrader License Fees? (http://www.forexfactory.com/showthread.php?t=454258)

card Oct 25, 2013 1:04pm | Post# 1

Brokers and MetaTrader License Fees?
 
Does anyone know what it costs for brokers to provide clients with MT4 or MT5? Is it a per user fee? And does the cost vary by broker?

MaxDoom Oct 26, 2013 4:18am | Post# 2

Does anyone know what it costs for brokers to provide clients with MT4 or MT5? Is it a per user fee? And does the cost vary by broker?
what does it matter?

card Oct 29, 2013 8:43pm | Post# 3

Someone I know is interested in opening up a bucket shop.

Kilian19 Oct 29, 2013 8:47pm | Post# 4

I actually talked to someone in charge of a brokerage about the exact same topic (not because I want to found or run a brokerage myself, but rather because I am curious).


To start a brokerage in US you’ll need 20 million sitting in a bank. I’m not sure the starting costs of a brokerage as I just work at Global Prime, I did not start it. Whitelabel is much cheaper where you would use a brokers liquidity and brand it as your own with your own branded MT4 platform. Starting / running a brokerage properly requires an accounting team, a compliance team, a tech team, a sales team.. You’d need to get a MT4 server for $100,000 each. If you want to be under regulation then this is another large cost. You then need to pay for the aggregation of LPs in $ per million cost plus a prime broker if you want to go down that route too

card Oct 29, 2013 11:59pm | Post# 5

I actually talked to someone in charge of a brokerage about the exact same topic (not because I want to found or run a brokerage myself, but rather because I am curious). {quote}
Thank you for the information. I searched for MT4 server cost and found some more info. You can do one of two things:

1. Buy an MT4 server license for $100,000.
2. Buy an MT4 White Label for a fraction of the cost and it comes somewhat integrated so you can automate the offsetting of your clients' risk. So, the way I understand it is that the White Label is MT4 + infrastructure around it + relationships with liquidity so you can offset your risk etc.

More questions. Would I then be able to buy a $100K license, create my own white label infrastructure and sell the white label to several brokers? And why then would anyone go to Metaquotes and buy MT4 for $100K instead of just getting the white label?

Also, does anyone have more information on white labels?

card Oct 30, 2013 7:18pm | Post# 6

OK I guess I'll come out with it. We're considering creating a competitor to MT4. Why? Because MT4 has a steep learning curve that most retail traders cannot get over. And besides, it's pretty buggy. I'm a quant (not a wannabe, but a real quant with a quant job) and even for me it took a while to figure out how to use MT4. I can only imagine how frustrated a lot of the retail traders must be, trying to figure out how to use MT4.

Would anyone with a good working knowledge of MT4 be interested in talking to me? Or maybe you can be the voice of reason and tell us how stupid we are to even consider something like this?

shrike Oct 30, 2013 7:45pm | Post# 7

This market is already crowded. Sounds like a silly idea to sink time/money into this. You are kinda 10 years late to the party..

card Oct 30, 2013 10:42pm | Post# 8

This market is already crowded. Sounds like a silly idea to sink time/money into this. You are kinda 10 years late to the party..
What else is out there that competes with MT4? Nothing I can think of is used by multiple brokers. And the only reason people want MT4 is so they can program their own EAs. MT4 is in a pretty sweet spot and they've gotten very complacent. Seems to me that they're just asking to be picked off. What am I missing here?

undergroundz Oct 31, 2013 3:43am | Post# 9

I don't know exactly the cost but I can say it's very large because a broker can earn million a year with it so a large investment in early is needed. And there is a company called MetaQuotes, they are the author of MT4/MT5 platform and MQL coding. And I Think it varies because of the scale of the broker.

rockit Nov 4, 2013 3:29am | Post# 10

OK I guess I'll come out with it. We're considering creating a competitor to MT4. Why? Because MT4 has a steep learning curve that most retail traders cannot get over. And besides, it's pretty buggy.
Yes, it is a poor piece of software for retail traders: it is old, made to scam them, and tying them down to MetaQuotes' capriciousness.
So, the obvious thing to do is to get rid of it asap.
It is only in use because of retail traders' irrationality and because it is good for brokers.

However, what I do not get is which part of mt4 are you referring to as "has a steep learning curve" - mql or the gui? In my view it is very, very simple - if you do not figure it out (gui or mql) in "a blink of an eye" you probably should not be involved in this business anyway (or any business that requires a certain level of abstract thinking).
So, I'd say the only reason to ditch mt4 is because it puts to many restrictions on programmers (and of course because you have to pay for it) and not because it is "too steep to learn"..
And, the good thing is, you do not need to replace mt4 with an similar software; all there was ever necessary was a means to connect to the trade server; so you'd want to create either a communication protocol or a standalone api (interconnector) to facilitate a client's terminal to connect to the trading server - that's all. There would be or are ready-made open source terminals to use - or one would make their own.

mmaker Nov 4, 2013 4:16am | Post# 11

What about cTrader? Is it ready to replace MT4?

cTrader Platform Brokers?
cTrader Brokers in USA?
cAlgo - Automated trading platform

MaxDoom Nov 5, 2013 3:37am | Post# 12

OK I guess I'll come out with it. We're considering creating a competitor to MT4. Why? Because MT4 has a steep learning curve that most retail traders cannot get over. And besides, it's pretty buggy. I'm a quant (not a wannabe, but a real quant with a quant job) and even for me it took a while to figure out how to use MT4. I can only imagine how frustrated a lot of the retail traders must be, trying to figure out how to use MT4. Would anyone with a good working knowledge of MT4 be interested in talking to me? Or [b]maybe you can be the voice of...

you are over looking a major consideration.....

MT is a broker solution so your target market is not the retail customer it is the brokers, what can you offer them that will make a significant enough percentage of them write off their existing facilities and start again with an alternative platform?

If you are serious about providing a better retail platform, then miss the broker solution out and develop a solution that will use the big brokers API services. That way your system will not require brokers to sign up etc. development costs will be lower as you can concentrate only on the front end, quicker and easier to market, sell directly to end-user etc etc.....

you sure you thought this through, because asking on FF is kind of a noddy place to start

skoda2008 Nov 5, 2013 7:33am | Post# 13

If you like cTrader, have a look at ProTrader3. It is where cTrader will be in about 5 years, and what MT5 should have been.

http://protrader.com/

Andriusxxx Jan 9, 2014 1:34am | Post# 14

OK I guess I'll come out with it. We're considering creating a competitor to MT4. Why? Because MT4 has a steep learning curve that most retail traders cannot get over. And besides, it's pretty buggy. I'm a quant (not a wannabe, but a real quant with a quant job) and even for me it took a while to figure out how to use MT4. I can only imagine how frustrated a lot of the retail traders must be, trying to figure out how to use MT4. Would anyone with a good working knowledge of MT4 be interested in talking to me? Or maybe you can be the voice of reason...
Dear FF readers,

Interesting thread. 1st of all, let me introduce myself as I'm a new members here today My name Andrius and I'm from Vilnius Lietuva.
I have been working with MetaTrader 4 company several years ago (multiple company) and i know everything about MetaTrader 4 and 5 trading platform on both side, broker and trader side.

1st of all, today I will explain it to you the actual cost to be a broker with MetaTrader 4 license. The cost of Metaquotes license $100,000 but you can get some extra discount if you know how to negotiable with them with price around $80,000 or if you are good and romance spoke person, maybe you will get with price $70,000 . You can make the payment by 1 shot or arrange the installments 5 or 6 times. Monthly commitments payment to Metaquotes is about $2250 (MetaTrader 4 platform $1500 + mobile $750).

Once you have the license, you can setup unlimited white label but of course with the cost. Every white label will cost $5000 (1 time fee) and $1000 or $1500 monthly commitments depend on trading platform package you choose.

MetaTrader white label is available at all brokerage company who offered MetaTrader 4 platform. Ask me if you need any extra knowledge about MetaTrader 4 platform.

Thank you and have a great day.

Andriusxxx Jan 9, 2014 1:37am | Post# 15

cTrader platform is not stand alone platform. cTrader is truly ECN platform where it cannot be operate without connection to liquidity provider. To be honest about cTrader placing MetaTrader platform, i think is still too far for now.

WaspyGlasses Nov 18, 2014 7:07am | Post# 16

I use MT4 for several years and I should say there is a HUGE NEED in new platform. That new platform must have all good things that we have in MT4 and should be:

  1. Open source - which means top level of security (who knows what we have in that proprietary code?)
  2. Can run on open source operating systems (security again)
  3. Cheaper for brokers
  4. Marketplace for EA and indicators developers
  5. More versatile for traders
  6. Should have better policies in support, listening for trader needs and development speed


So to create such software we need a fund that will be funded by some kind of brokers association or by sales of terminals to traders and commissions from marketplace.

And I don't think that "we kinda late to the party", because this action will be on the next level of organization that seems to be very evolutionary.


JamalFX Nov 17, 2015 9:53am | Post# 17

100,000 for a license and an extra 30 for some addons. MT is no longer the preferred trading platform. I've been reading here and there about complaints from brokers towards Meta Quotes for the fact that they keep on restricting the brokers to improve their own license by creating addons. For examle you are not allowed to create your own mobile trader as you have to purchase from Meta Quotes. Who knows what other basic stuff you can't develop.

When it comes to other platforms, let's not call them alternatives, they are good deals. For instance I've been reading about cTrader but it is pretty much ECN platform. Have a look at Vertex FX for instance. It have many features that could cost you thousands with Meta Trader.

Those complains raised by the brokers for sure do not come out of no where. Check this thread please http://www.forexfactory.com/news.php?do=news&id=509688

I mean everybody is escaping from them because of bad support, because you keep on paying and above all it costs much. People would say it worth what you pay for! If I'll have to agree with you, what about other features I have to pay for which exist in other platforms for free and even built in (Not addons)?

asrona Nov 17, 2015 11:47am | Post# 18

Can I have someone cracked the MT4 and running it on my own, is that the way many scam brokers doing to cheat their clients or all scam brokers must pay 100k$ for MT4 license? Regarding white lable, does the cost vary when I want to be a white label partner of a broker, I meant with this broker it's 10k but with another only 5k$?

8fingers Nov 17, 2015 7:46pm | Post# 19

I use MT4 for several years and I should say there is a HUGE NEED in new platform. That new platform must have all good things that we have in MT4 and should be: Open source - which means top level of security (who knows what we have in that proprietary code?) Can run on open source operating systems (security again) Cheaper for brokers Marketplace for EA and indicators developers More versatile for traders Should have better policies in support, listening for trader needs and development speed So to create such software we need a fund that will...
This guy knows what he is talking about. Unfortunately for Americans it doesnt matter as Retail Forex in USA is almost extinct. Just like the American middle class.

RagJosh Mar 6, 2016 9:15am | Post# 20

Can I have someone cracked the MT4 and running it on my own, is that the way many scam brokers doing to cheat their clients or all scam brokers must pay 100k$ for MT4 license? Regarding white lable, does the cost vary when I want to be a white label partner of a broker, I meant with this broker it's 10k but with another only 5k$?
It is not possible to crack MT4 because a lot of their resources still work from their own server (and not the broker servers). You can explore White Label solutions from brokers or technology companies who already have an MT4 server.

MetaQuotes charges $5,000 for every White Label and $1000 per month for technology maintenance (But it has to come via a broker who already has MT4 server).

Personally I think you should get a White Label from a technology provider and NOT from a broker. Because there is a massive conflict of interest (for example, your client data, flexibility of moving your WL away from the broker, flexibility between A Book and B book, third party liquidity options etc. etc. etc. )

The top three providers that I know of are

1) Gold-i (very expensive): www.gold-i.com

2) TurnkeyFX (Very good and probably the cheapest and most flexible provider that I have come across) : www.turnkeyfx.com

3) T4B (good and very accommodative but slightly more expensive than average) : www.t4b.com

Do share if you have had a better experience with another provider so far.


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