MT5 has been around for a while with little uptake. Why have attitudes recently changed toward the product?
Although MT5 has always been a much better platform than MT4, it hasn’t been widely adopted because of its inability to facilitate hedging – a key aspect for a retail trader. However, that has now changed and I envisage significant uptake of MT5 over the coming year, with MT5 becoming the platform of choice for brokers within the next two years.
Why does MT5 have such appeal for retail brokers?
Firstly, it’s a far more advanced product than MT4 in terms of operational infrastructure. With MT4, the system consists of independent servers, so if you want to scale up, you need to add more servers, each with individual risk management and trading technology. MT5 is a clustered system, with one homogenous environment, making it easy to scale up. It allows brokers to have one server and link multiple sites to it rather than having separate servers in each regional office.
Secondly, MT5 has an unlimited number of symbols to trade across multiple asset classes whereas MT4 has a flat structure, with a maximum of 1024 symbols.
In a nutshell, MT5 is a Nirvana of a system. It offers a multi-venue trading facility via one platform and a single margin account across all asset classes. It is also mobile based, which increases its appeal even further to brokers worldwide.
What is involved in migrating from MT4 to MT5?
Any third party add-ons required for MT5 such as plug-ins, Bridges and MAMs all have to be re-developed because the MT5 APIs are completely different from MT4 APIs. The software development is complex and time consuming. Gold-i has a dedicated in-house team of developers who spend all their time focusing on migrating our tools to MT5. Our full portfolio should be complete by the end of the year.
Will MT4 become obsolete?
Yes, I believe it will. We will start to see new brokers taking MT5 from the outset, and established brokers will gradually migrate to MT5.
How will brokers manage the different liquidity streams across multiple asset classes in MT5?
Technology providers in the industry have been developing new products to address this need. Gold-i’s recently launched Matrix 2.0, for example, is a unique multi-asset liquidity aggregation system with multiple routing and aggregation methods. It allows brokers to offer the most effective execution model to different client types. We have invested over £1 million in the development of Matrix 2.0 – and I believe this product will help to accelerate uptake of MT5 whilst also helping brokers to make more money and reduce their risk.
What do you think the retail environment will look like by the end of the year?
I think there will be an increase in non-bank liquidity provision in FX and CFDs and we will also start to see a significant uptake in MT5 in combination with the Gold-i Matrix 2.0. The uptake of MT5 will change the landscape substantially.
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Gold-i is a multi-award winning specialist technology company which helps MetaTrader brokers to increase profits and trade more effectively. The company’s products and services address four key areas: risk management, liquidity, integration, and hosting and server management.
For more information, please visit www.gold-i.com