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Popular trading platforms MetaTrader 4 and MetaTrader 5, operated by MetaQuotes, are taking action against prop trading companies. In their latest move, the technology company has forced Blackbull Markets to terminate its services for Funding Pips.
Despite MetaQuotes not publicly confirming its actions against prop trading companies, Anish Lal, Chief Business Development Officer of Blackbull, informed Finance Magnates that the broker was "forced to immediately shut down Funding Pips as a client."
The CEO of Funding Pips, known as "Khaled" on Twitter, confirmed that it was MetaQuotes' initiative that compelled Blackbull to terminate services for this prop trading company. He further stated that MetaQuotes' decision was "due to active U.S. accounts."
The CEO of Funding Pips wrote, "Today, MetaQuotes decided to stop services suddenly without prior notice due to active U.S. accounts." He added, "(Blackbull Markets) did not terminate our partnership, but they were forced to let us go, or else they would lose their license. As you can see today, they were removed from the application. I hope they come back. I only got the best terms."
In an exclusive report, Havoc in the prop trading industry due to funding pipeline shutdown, Funding Pips shared the situation with the community, stating that MetaQuotes decided to stop services suddenly due to active U.S. accounts.
Similar to other brokers, Blackbull utilized their MetaTrader license, tagged with a gray label, to support prop trading companies. As Lal confirmed, the broker only allowed Funding Pips to run on its "demo server" through MT5.
Due to the pricing structure of MetaTrader licenses, MetaQuotes does not charge fees for the use of its demo services; it only charges for the use of its real-time servers.
When it comes to supporting prop trading companies, most of them only provide simulated trading to clients on demo servers, even those that have passed challenges. In this model, the platform replicates trades on real-time servers and shares profits with traders. In this setup, MetaQuotes does not generate any revenue, as activities are conducted on demo servers.
Both MetaTrader platforms are popular for leveraged forex or contract for difference (CFD) trading. However, MetaQuotes' licensing policies are deemed too opaque. They have even tightened policies for offshore brokers. Nevertheless, the gray label on their licenses allows brokers to offer MT4 and MT5 platforms to other companies; otherwise, MetaQuotes may deny such access.
Lal from Blackbull stated, "Unfortunately, we violated the gray label license ability to provide this service for prop companies, so we were forced to immediately shut down Funding Pips as a client and their servers in our demo environment."
Finance Magnates reached out to MetaQuotes, but as of the time of writing, no response has been received.
In addition to Blackbull Markets, another broker, Purple Trading, which had a gray label on its MetaTrader license, also terminated services for prop trading companies earlier this week. While Blackbull's actions only impacted a known prop trading platform, Purple Trading serves multiple platforms, including Funding Engineers, AquaFunded, Goat Funded Traders, Funded Traders, Technical Funded Traders, and others. |
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Post time 23-2-2024 06:40:20