Do You Really Need MT4 to Run a Forex Prop / Proprietary Trading Firm? – 4 Reasons to Consider Alternative Broker Technology

Minimal red tape, affordability, and an easy set up process are just a few reasons our fully customizable forex proprietary / prop trading technology is superior to MT4 or MT5.


Due to a change in MetaQuotes policy, a financial license is now required in order to launch a prop firm. This news was announced several months after we posted this article. The original text can be found below:

We’ve witnessed an explosion in demand from startups and entrepreneurs looking to launch their own forex & CFD proprietary / prop trading firms. Due to the growing popularity of the forex & crypto prop trading model, we are often asked for guidance pertaining to the technology that will power the prop trading firm. In most cases startups ask us about the feasibility of running this venture using MT4 or MT5 .

We are well aware that some of the largest prop firms out there are using MT4 and MT5, however, it should be noted that these firms, just like some of the biggest forex brokerages, operate on a scale far larger than a startup. This is an important consideration for those interested in starting their own FX or crypto proprietary trading firm.

Based on numerous conversations with startups on this subject, we’ve outlined 4 compelling reasons why an alternative broker technology makes sense for new forex & crypto prop trading firms:

#1. To Launch an MT4 or MT5 Prop Firm You Must Establish an Offshore Company, Office, and Bank Account

Prop firms by nature are unregulated entities. As such, MetaQuotes now requires that non-licensed brokers and prop firms register their business in an unlicensed jurisdiction such as St. Vincent & the Grenadines, open a bank account, and also establish a physical presence on the island.

For many entrepreneurs wishing to start their own prop firms, this is not a massive obstacle but if your startup is on a budget, or your firm wishes to test out the prop firm model on a smaller budget, it will be overhead you cannot get away from. For this reason, we offer an alternative to MT4/MT5 which is far more cost effective to launch. Contact us today to check out a demo.

#2. MT4 & MT5 White Label Providers Only Generate Revenue From Live Trading Volume

This is one of the most misunderstood concepts surrounding forex & crypto prop trading. The reason one will find countless firms (ours included) offering MT4 white labels is due to the potential trading volume providers can expect from the new forex brokerage. In fact, most MT4 white label vendors simply pass along the cost MetaQuotes charges directly on to the startup broker. This simple fact cannot be understated: White label vendors care about one thing and one thing only: live trading volume.

The above poses a challenge for new proprietary firms since the business model is usually based on demo account trading. It’s important to understand that demo account “challenges” offer no value to an MT4 white label vendor, rather, they are a liability: For MT4 providers, demo accounts take up valuable “real estate” that the broker could use for a traditional brokerage clients.

For this reason, expect to pay extra, ie a premium on top of the the normal fees for an MT4 white label if you want to use MT4 for your prop trading. Alternatively, you can consider our software which is specifically designed for prop trading.

Running a prop firm using MT4 will incur costs above the standard MetaQuotes pricing. Prop firms using MT4 should also expect to pay for add ons like a CRM, price feed, dashboard, and other analytical tools.

#3. The Competition For Business in the MT4 Space is Fierce

When we have discussions with startups looking to establish their own forex or crypto proprietary firms, we are told that MT4 is a must have. Is it really? It will be very expensive to secure just a small group of traders using MT4 for one simple fact: every other forex prop firm is offering the exact same technology, thereby creating a loyalty problem. To entice away clients from your business, all the competition has to do is slightly lower the spread or offer some other type of bonus or incentive, after all there is no material difference between the MT4 offered by Prop Firm A and Prop Firm B.

MT4’s popularity is also its biggest drawback: the software is the same no matter who provides it. As an alternative, to MT4 or MT5, we’d suggest having a look at our custom prop trading technology. The main advantage to our technology is that you can offer your end users a fully branded and customizable trading system that no other broker in the world is currently using.

#4. MT4 & MT5 Does Not Offer Dashboards, CRMs, Price Feed, or other Critical Add-Ons

Finally, there is no “turnkey” forex & CFD prop trading solution offered directly by MetaQuotes. While some firms may provide you this software as a package offering, it will be a combination of MT4 or MT5 plus their own customized software.

The result is that the MetaTrader route inevitably will result in costs far above standard MT4 or MT5 pricing. The reason it will be more costly to establish a forex prop firm using MT4 is that you must source the ancillary products from 3rd parties or build it yourself. It’s important to understand the MT4 does not provide the following components: CRM / Trading Cabinet, Trader Dashboard, Analytical Tools, data feed, pricing, or any integrations of the above.

Atomiq Consulting – Guidance in Selecting the Best Forex & Crypto Proprietary Trading Software

If you are an entrepreneur or start up looking to launch your own forex proprietary trading firm, Atomiq Consulting offers an excellent suite of software that is truly “turnkey” in nature. With our technology there is no need to wait months setting up bank accounts and offshore companies before getting started. Furthermore, you won’t need to juggle contracts with multiple software vendors to meet your goals; we can offer you the entire service as one package.

To check out a demo of our forex & CFD prop trading technology, don’t hesitate to contact us today!

Have a look at some of the additional services our clients have found to be helpful in the growth of their business.

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