The market share of MT4 and MT5 platforms is up to 90%, and the global users reach 14million. Midak pushed MT5?

For the foreign exchange industry, the year 2000 is an important node. This year, Russian youth renatfatkhullin and his partners took advantage of the east wind of the country's vigorous economic development to establish metaquotessoftwarecorp in Kazan, that is, midak software company (hereinafter referred to as midak).

Since its inception, midak has positioned its main business as the development of online foreign exchange trading platform. After years of efforts, midak has grown at an unexpected speed and become the absolute leader in the global foreign exchange market industry. All these are attributed to the biggest gold sucking monster of midak - MT4 and MT5 platforms.

Throughout history, we can find that the growth path of midak, MT4 and MT5 is really enviable. Yan Xuanjun combed out several key points for you here:

● metaquotes, the first generation of trading platform launched by midak in 2001, provides simple functions such as data visualization and market view, and creates a customer self-made language program.

In 2003, madak launched metatraders 3 (MT3), which can access mobile terminals and began to occupy the market.

In 2004, the launch of MT4 and MT5 opened up all links of online trading, including software trading terminal / clearing bridge / monitoring terminal / mobile terminal.

Since its establishment, midak has become a leader in the field of online foreign exchange trading in only five years. His research and development ability and vision have left his peers behind. Moreover, the reports of MT4 and MT5 in Russian media showed that the market share of MT4 and MT5 was as high as 90% at one time, and the global users also reached 14million. According to Russian media reports, the market share of MT4 and MT5 once reached 90%.

The design concept of early MT4 and MT5.

The biggest advantages of MT4 and MT5 platforms lie in their comprehensive performance, simple operation, low cost (at the beginning) and low use threshold. However, these advantages that once helped MT4, MT5 and midak to attack cities and seize land in the foreign exchange market turned into the biggest loopholes, and even made midak have to make startling decisions one after another.

Many factors forced MT4 and MT5 to give up.

Previously, we mentioned that a series of advantages that help MT4 and MT5 occupy the global market can be summed up in two words: convenience. MT4 and MT5 are the most affordable choices for both brokers and traders.

However, in the context of the continuous development and expansion of the foreign exchange market, new challenges have also emerged: more and more fake platforms, with the help of MT4 and MT5, a number of traders have been trapped.

At this time, two of the most difficult problems were put in front of midak, forcing him to make changes:

First, piracy is rampant, and MT4 and MT5 have become nightmares for many regulators.

Secondly, the profitability of MT4 and MT5 platforms has declined, and midak needs to find new ways to increase revenue.

We will analyze the two most difficult problems one by one.

Making money is the eternal theme of shopping centers.

In order to understand the earning power of MT4 and MT5, we first understand some concepts.

Skill 1: accelerate upgrading and crazy marketing.

The first thing midak did was to upgrade MT5. MT5 has been comprehensively upgraded several times compared with MT4 and MT5, in addition to solving the feature defects such as non lockable warehouse in the initial version:

From the perspective of trading varieties, MT5 platform can not only support foreign exchange and futures trading, but also carry out stock, option and other transactions.

MT5 not only provides 8 more technical indicators than MT4 and MT5 (30 for MT4 and MT5 and 38 for MT5), but also adds 21 K-line charts with different cycles, up to 17 indicator display forms.

In order to plug the technical loopholes, midak needs several large companies to endorse MT5. In August 2016, MT5 established a new MT5 connection channel for onezero, making it the stock, futures and other floor trading instruments of the world's 15 largest exchanges. Ruixun bank and Lmax have also joined in succession to become MT5's liquidity provider.

According to the official website of midak, Ruixun has become a mobile supplier of MT5.

By the middle of 2016, the market recognition of MT5 has significantly improved, and about 100 brokerage companies have provided trading services on the MT5 platform. However, MT4 and MT5 still account for 90% of the market share. The slow upgrading process was unacceptable to midak, and the new killing officially began.

Style 3: price squeeze.

At the beginning of 2017, MT4 and MT5 made a bolder decision: to increase the prices of MT4 and MT5.

On January 1st, 2017, midak announced on the Internet that from now on, the service fee for new users of the brokerage company on each MT4 and MT5 server will be increased from the previous $1500 to $2000, and the original $75000 licensing fee will be increased to $100000, an increase of 30%. Even insiders said that in order to make way for MT5, MT4 and MT5 did not rule out the possibility of continuing to increase their costs.

The most exaggerated is that the royalties of MT4 and MT5 are four times that of MT5. In fact, brokers have no choice but to raise prices unreservedly.

Shortly after MT4 and MT5 raised prices, midak executives revealed that nearly 100 brokerage companies began to turn to the MT5 platform, including major customers such as activtrades, just2trade and nasbroker.

However, even if nothing can replace its polarity, midak has no MT4 or MT5 that can replace MT5.

According to the survey of financemagnatesintelligencedepartment, in the fourth quarter of 2018, it has been nearly two years since the price hike of MT4 and MT5, and the total volume of transactions completed by global foreign exchange retail brokers on MT4 and MT5 platforms is still as high as 55%. Throughout 2018, this proportion has been rising steadily and has never decreased by 50%.

This shows that although major platforms and their customers have gradually accepted MT5 on the surface, their loyalty to MT4 and MT5 is still quite amazing.

Why can't MT5 replace MT4 and MT5?

Why does this happen? To understand it, we can divide it into two stages.

After adding fuel to the flames: escaping from midak control has become the consensus of the industry.

However, as mentioned above, midak continuously upgraded and transformed MT5 in the later stage, which not only repaired functional defects such as failure to lock warehouses, but also provided many upgrade services that MT4 and MT5 did not provide:

In 2017, midak added in-depth market function in the new version of MT5, providing market liquidity information.

In January 2017, midak announced that MT5 has realized the integration function of financial technology services, and technology service providers can directly provide their own products or services to brokers, so as to enhance brokers' capabilities in multi asset management and risk control.

Through MT5's enterpriseenterprise, brokers can install various plug-ins, establish a complete management configuration system, and save all client data to the server.

By the beginning of 2018, MT5 has been significantly better than MT4 and MT5.

However, there are new problems: due to a series of coquettish operations in the promotion of MT4 and MT5, many brokerage companies know that the influence of midak is so great that it makes people uneasy.

Since the birth of MT4 and MT5, midak has occupied nearly 90% of the market share of the industry, and its monopoly advantage is very obvious. Originally, the brokerage company enjoyed the services provided by midak, while MT4 and MT5 also helped the former grow rapidly, and the cooperation between the two sides was unbreakable - they wouldn't have done so if it weren't for the above series of operations. Now, if midak continues to dominate, if MT5 will also increase in price in the future, maybe midak will charge more money, and the broker has no power to fight back at all.

Why should we change this situation? While looking for new partners, major brokers are also stepping up the development of their own unique trading platform.

Ctrader is a multi asset household property contract trading platform launched by Cyprus technology supplier spotware. In addition to MT series midak, it is the most popular platform for brokers. Ctrader is directly connected to the platform and liquidity provider of NDD platform to ensure that it does not interfere with transactions. Because of its simple use and reasonable charge, it has attracted the favor of many brokers.