BREAKING: MetaQuotes License Dispute with Purple Trading SC
The trading world is buzzing with news about major changes to the licensing of MetaTrader 4 and MetaTrader 5 – two widely used trading platforms. These alterations stem from a dispute between MetaQuotes, the developer of the MetaTrader platforms, and Purple Trading SC, a partner broker.
The situation has escalated to the point where it could potentially impact numerous traders and prop trading firms worldwide. Here’s what you need to know about the unfolding event.
Trouble for Purple Trading
MetaQuotes has reportedly issued a letter to Purple Trading SC, indicating a severe threat to the broker’s license for both the MT4 and MT5 platforms. Due to this situation, the co-founder of Purple Trading SC personally met with the MetaQuotes management with the hope of solving this issue. Despite these efforts, the current outlook for Purple Trading SC remains uncertain.
Immediate Steps for Affiliates of Purple Trading
One of the immediate actions required for affiliates of PT is the removal of all mentions of Purple Trading SC about the MetaTrader platforms from websites, dashboards, or FAQs by Monday, February 12, 2024. This directive includes any trademarks, logos, and references, such as client testimonials.
Furthermore, the creation of new demo accounts on MT4 and MT5 will be prohibited starting from the same date. There’s also a possibility that existing accounts and trades may be deleted by the end of February 2024, or even as early as next week, depending on the outcome of ongoing negotiations between Purple Trading SC and MetaQuotes.
New Hope for Prop Firms?
MetaQuotes has disclosed a shift in its approach towards prop firms, indicating a willingness to re-evaluate its stance and possibly offer individual assessments for an MT5 main label license. This development suggests that prop trading firms may still have the opportunity to use the MT5 platform, albeit under stricter regulations and oversight.
MetaQuotes Takes Action
The reasons cited for MetaQuotes’ drastic actions reportedly include complaints from US clients, the damaging activities of scam prop firms, non-compliance with brokerage rules, and concerns related to Russian ownership amid fears of sanctions.
Prop Firms Impacted by the Licensing Dispute
For traders wondering which prop firms might be impacted by the recent licensing changes with Purple Trading SC, here’s what you need to know:
| Directly Affected Prop Firms | Firms such as E8 Markets, For Traders, and Aqua Funded, which rely solely on Purple Trading SC, will see immediate impacts due to the dispute. |
| Prop Firms Facing Possible Disruptions: | TFTP, Blue Guardian, and Maven, which use Purple Trading in addition to other brokers, could also face disruptions, though possibly to a lesser extent. |
| Prop Firms Unlikely to Be Affected | A significant number of firms, including FTMO, TFF, Funded Next, FT+, Bespoke, TopTier, Fidelcrest, FunderPro, Funding Pips, MyFundedFX, SmartProp Trader, Surge Trader, Instant Funding, FXify, Funding Traders, Alpha Capital, Goat Funded, and Glow Node, do not use Purple Trading for their operations. These firms are expected to experience no direct effects from the current licensing changes. |
E8 Markets Response
E8 Markets, one of the prop firms that rely solely on Purple Trading SC, has recently stated this challenge on their social media profiles. The firm has announced that they will be migrating accounts from PurpleTrading MT4 or MT5 over the weekend to ensure a continued safe and easy trading experience for their clients.
This proactive measure aims to preempt any issues that could arise from the ongoing dispute. E8 Markets has highlighted its commitment to zero commissions during this transition and maintains a confident stance, encapsulated by the hashtag #unfazed.
E8 Markets has also emphasized its philosophy of self-reliance and technological innovation, indicating that they do not depend on white labels and prefers to carve its path in the industry.
What This Means for Traders?
For traders and prop firms using the MT4 and MT5 platforms, especially those associated with Purple Trading SC, this development underscores the importance of staying informed and prepared to adapt to new trading environments.
It’s advisable to explore alternative trading platforms and ensure compliance with all regulatory requirements to mitigate any disruptions to trading activities.
