Apple Inc. last week removed the MetaTrader 4 and MetaTrader 5 apps from its App Store, striking what could be a massive blow to the forex and contracts for differences (CFDs) trading industry.
The move by the technology giant was unexpected. App Store is the only place where mobile applications can be installed on Apple’s iPhones and iPads (with some technical exceptions).
Though the exact reason behind the app removal was not known, it is anticipated that the growing number of scams being implemented using the MetaTrader platforms prompted Apple to take the abrupt step. A section of the industry also speculates the origination of MetaQuotes in Russia and the ongoing sanctions on the country by the US, are behind Apple’s move. However, MetaQuotes has refuted all such claims.
Apple’s app removal is not only affecting MetaQuotes, but also dozens of brokers that are using the platforms. MT4 and MT5 together captured 83.8 percent of the total market share by the end of Q2 2022, according to Finance Magnates Intelligence . However, the mobile trading share of MetaTrader platforms and their iOS and Android-based clientele are unknown.
Industry Reactions
Gold-i’s Founder and CEO, Tom Higgins, told Finance Magnates : “The MetaTrader Mobile App is released as a single app for all brokers. Since a number of traders have complained to Apple about losing money via some unscrupulous brokers, Apple has pulled the app. It is an unusual situation as one app is for multiple B2B clients to give to their B2C clients. I know MetaQuotes are working on a solution, of which I can see a couple of options.
“In the immediate term, this only affects new app downloads, so existing users are fine. If you need to trade on your phone now, then ask your broker if they offer the MetaTrader web version, which will run on any device.
“Longer term, either Apple will allow the app back in the store, or MetaQuotes could post multiple versions, with one per broker, so only the bad brokers get banned.”
Netdania's Co-CEO, Rasmus Bagger-Peterson, said: "This is a major event that must be causing a lot of headaches to the trading industry. This will potentially force more and more brokers to look elsewhere for trading applications, either through third parties or by starting to develop their own platforms."
Competition
Some of the competitors of MetaQuotes also came out in support of the company.
“We at Spotware and the cTrader team would like to express our regret to learn that MetaQuotes' trading platforms, MT4 and MT5 have been pulled from the App Store,” said Aris Christoforou, the Head of Marketing at Spotware, which is the provider of the popular trading platform
“We respect the work that MetaQuotes has done, and cTrader would like to express our support to them and see this matter be sorted out quickly, in order to keep the fair competition and keep on pushing and challenging each other in innovating, creating and supplying useful trading applications that benefit brokers and traders worldwide.”
But, the competitors might also benefit from the ongoing situation.
“After a market disruption caused by taking down MetaQuotes MT4 and MT5 mobile platforms from the App Store, X Open Hub reports increased interest in our technology solutions,” X Hub Open’s CEO, Michał Copiuk wrote on Linkedin.
Commenting on Apple's decision, Evgeny Sorokin, the SVP of Software Engineering at Devexperts, told Finance Magnates : "Scammers pig butchering people by seducing them into ‘get-rich-quick’ schemes are old news. And the stories of how bucket shops do it using MT were all over the Internet for more than 10 years at least. So it was a surprise to me that yet another instance had resonated so much that it resulted in a crackdown – but mostly because it took so long, for all Apple cared.
"Our strategy was different long before: we deliver solutions, and our customers enjoy the ability to make it appear as if they had made it. When we offer white-label products, such as DXtrade, they are published on behalf of brokers, so no changes after the notorious Apple move – the mitigation of these risks was built-in. Perhaps we will double down on the ease of white-labeling to accommodate the increased demand."
Brokers
Finance Magnates also reached out to many brokers to know how the app removal is impacting their businesses. Whilst some refused to comment, Finance Magnates expects more details to unravel with more reactions and will update this article accordingly.
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