FAQ: Why Brokers Don’t Offer cTrader?
There is no denying the fact that MetaTrader 4 dominates the market. Most Forex and CFD brokers offer the platform, and most wouldn’t even consider not offering this platform. Since MetaQuotes have begun to aggressively phase out MT4, MetaTrader 5 has started to get more traction. Let’s explore why brokers don’t offer cTrader.
What are the Reasons Why Brokers Don’t Offer cTrader
There are a few primary reasons why brokers have been reluctant to adopt cTrader. Most of the reasons have little to do with the platform its self or the company. They are mostly business factors.
Cost is obviously a very important factor. cTrader and MT4 have very different pricing models. With MT4, the broker simply pays a one-time license fee and a fixed monthly support fee. Even though the broker is stuck with the responsibility of hosting and maintaining the platform, this model seems to be preferable. On paper, it looks like they are not paying a lot for the technology, however, the other resources do add up. cTrader, on the other hand, has low setup costs (in comparison), but they charge a volume fee. This means the broker pays for every trade you make. However, this is well justified because of Spotware hosting and supporting the platform, not the broker. Also, Spotware invests a lot into developing new features that add value to traders.
Because there are so many resources already out there on the internet for MT4, traders can find information easily and the broker doesn’t need to invest in educating traders. There are hundreds or even thousands of websites like ours but dedicated to MetaTrader.
Brokers Can’t Manipulate cTrader
For the hundreds of unregulated or offshore brokers out there, cTrader is not a viable solution for them. The cTrader platform does not let brokers manipulate trading history or open positions. Because cTrader is hosted by Spotware, brokers don’t have the access to modify data in the database. Fraud brokers are known to do this to make their clients lose. MT4 is designed in a way that this is quite easy for brokers. Obviously regulated brokers wouldn’t do this since they are audited and they will get caught out.
Similar to the above point, brokers can’t install plugins on the server since Spotware hosts the platform. Brokers may want to install plugins for both good and bad reasons. Yes, plugins can be used for manipulation, such as Stop Loss hunting. But they can also be used for good reasons. In MT4, plugins can be used for bonuses, swap free accounts and other valid reasons. Spotware develops all such features for cTrader themselves. This can be a bit uncomfortable for brokers because they may not agree with the way the features work or they may not want to wait for Spotware to do the development. There is a bit less functionality in this respect.
Maintaining Two Platforms
Brokers need to integrate their trading platforms with their CRM. Adding cTrader means they need to perform the integration and maintain it. This is a business obstacle for the broker. The broker will need to support clients on two separate systems, manage liquidity and exposure risk on two different platforms as well. This adds operational complexity to the brokers business and a lot of smaller brokers are not in a position to take this on.
Some people are just narrow-minded. They only embrace things that are fashionable or popular and don’t give a second thought to things which are not. Unfortunately, that’ just the way a lot of people are. People are afraid of change and often reluctant to new ideas.