MetaQuotes Warns Brokers About Illegal Plugins

11 Comments

metaquotesThis week we saw the ‘writing on the wall’ in our comments when a MetaQuotes representative expressed that a third party technology provider that we had written about violated the MetaTader license agreements. Explaining themselves and what was being done wrong, they added:

“No Modifications: You will not undertake, cause, permit or authorize the modification, translation into other languages, creation of derivative works, reverse engineering, decompiling, disassembling or hacking of the MetaQuotes’ Software or any part thereof. You will also not create other software based on the MetaQuotes’ software.
Not adapt, reproduce, enhance, translate, reverse engineer, decompile, disassemble or otherwise modify or engage in any other similar manipulation of the System or any portion thereof without the Licensor’s express prior written approval.”

(For its part the provider offered its own answer and even expressed to us that they have been trying to reach out to MetaQuotes.)

Following on that warning shot, MetaQuotes has posted on its admin site to brokers and partners that:

“Unfortunately, some brokers and third-party developers do not pay attention to MetaQuotes Software Corp. license agreements and keep implementing third-party components to the terminals, as well as modifying distribution packages.
Therefore, we have to raise this issue and recall several conditions:
• paragraph 2.3 of the license agreement for MetaTrader 4 and MetaTrader 5 client terminals
No Modifications: You will not undertake, cause, permit or authorize the modification, translation into other languages, creation of derivative works, reverse engineering, decompiling, disassembling or hacking of the MetaQuotes’ Software or any part thereof. You will also not create other software based on the MetaQuotes’ software.
• subparagraph of the license agreement for MetaTrader 4 and MetaTrader 5 trading platforms (“Rights and Obligations of the Parties” section related to the Licensee)
Not adapt, reproduce, enhance, translate, reverse engineer, decompile, disassemble or otherwise modify or engage in any other similar manipulation of the System or any portion thereof without the Licensor’s express prior written approval.

We strongly oppose the inclusion of any DLL/EXE files in the client terminals, forced activation of DLL calls with changes in the program’s default settings, as well as modifying distribution packages.

We earnestly ask all our clients to withdraw from using modifications. Only conventional distributions are allowed for use.

There has obviously been some friction recently between the platform provider and its third party eco-system as MetaQuotes has launched competing products. However, with the exception of individual cases, this is the first time that we are seeing a broad general announcement taking place.

While the specific reasons why MetaQuotes is now coming out against what it believes are illegal providers, it is worth noting that this week, many MetaTrader brokers including Alpari UK, Markets.com, and LMAX all suffered trading glitches on the platform. According to insiders, brokers were told that there were conflicts between their plugins and MetaQuotes settings that created a software conflict. As such, it would make sense that MetaQuotes is seeking to create some sort of standardization among its broker system.

When discussing MetaTrader glitches with several bridge providers in the past, they had mentioned that they believed that while there are valid complaints against the platform, brokers can’t complain when some ‘off the shelf, untested plugin that they buy from an unknown programmer’ causes their servers to fail.

Looking ahead, it will be worth watching what effects MetaQuotes campaign has on brokers and whether it leads to them launching a more accommodating partner system.







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11 Comments on this post

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  1. Michael said:

    This sort of protectionism from MetaQuotes is going to stifle the industry and only encourage the adoption of rival platforms.

    March 22nd, 2013 at 9:17 am
  2. Ron Finberg said:

    Or, it leads to more standardization of their product and the platform’s performance improves across the board. It is the risk they take.

    March 22nd, 2013 at 9:38 am
  3. Alex said:

    When you allow your source platform to be installed locally what do they expect, everyone is going to follow the rules ? You get what you design, its something the russian’s dont understand yet , developers will never speak business talk.

    Now all of a sudden they want to enforce their domain on this ? The only way they will enforce their domain over their source is by hosting the product from start to end and actually putting money back into development of the terminals and other items. Something i highly doubt the shareholder will do .

    Compare devExperts to MQ, night and day difference. The fact is nobody trust MQ until that changes they arent going anywhere , either with a hosted offering or a self hosted one currently marketed.

    March 22nd, 2013 at 10:14 am
  4. Adil Siddiqui said:

    why doesn’t metaquotes include all these people in the metaquotes family, if there are talented people (3rd party plugin developers) then it makes sense to offer their products, just do a deal with them.

    March 22nd, 2013 at 12:05 pm
  5. Jon said:

    How could mt4/mt5 be hosted by metaquotes? As a front-end and the backend, the backend would need to be lined directly to broker’s trading servers. How could metaquotes manage all the trading servers at once?

    March 22nd, 2013 at 1:03 pm
  6. Jeff said:

    “You will also not create other software based on the MetaQuotes’ software.”

    wow.. so practically any software working with metaquotes apis is “illegal”. why do they offer apis then?

    or maybe their next move will be to deprecate their apis too, destroy competition and make brokers go berzerk.
    for what? to milk the brokers with “their own” copycat products? who will trust them again?

    i guess that would make sense in a world that would favor allow unlawful competition, unethical business and that they wouldn’t mess up in every single release!!..lol

    March 22nd, 2013 at 4:29 pm
  7. Alex said:

    Guys,
    Exactly , its Russia ! If it wasn’t for EA’s MetaQuotes as a company would not exist .

    Here is the state of EA’s

    1-Brokers hate EA’s they create churn and just burn accounts,
    2-Developers of EA’s cant sell any EA’s any more a unless they are arb/latency EA’s
    3-Traders looking to buy EA’s are flooded with junk on the market looking to rip them off.

    So basically it begs the question , why offer MT4 when all your getting is what has become at this point, junk EA traders churning the accounts creating ZERO profitability ?

    March 22nd, 2013 at 7:36 pm
  8. Yakov said:

    Jeff,

    I think it is applies only to client terminal software and not to server APIs.
    All these paragraphs are taken from client Terminal license agreement.

    March 22nd, 2013 at 9:25 pm
  9. Robert said:

    Hi,
    am I right that a whole business that was estabilished around MetaTrader is utilizing the DLL libraries within MT4 Client Terminal?
    Shall MetaQuotes prohibit DDL the web services like MT4i, myFXBook, FXIntelligence, maybe these social trading services and others would have serious issues?
    Can MetaQuotes do that? Wouldnt that reduce the usability of MQL?
    Thanks for your thoughts.
    Robert

    March 25th, 2013 at 9:09 am
  10. Ron Finberg said:

    It also comes down to who they approve as partners. But no reason they can’t pull them plug on someone.

    March 25th, 2013 at 1:14 pm
  11. Marcin Wenus said:

    For me MetaQuotes is trying to cover their incompetence from last week charging third-part plugins.

    I can imagine that some global plugins make cause problems but many of brokers who had problems on last Monday didn’t have such things.

    I also talked with few brokers and made short interviews. It seems MetaQuotes send 4.82 update (that was tested before) but something was different/broken comparing to tested version.

    Truth probably is as always somewhere in middle but its smart and not fair MetaQuote’s move.

    March 28th, 2013 at 7:07 am

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