Is MetaTrader the Right Platform for Cryptocurrencies?

MetaTrader Cryptocurrencies

MetaTrader 4 Right for Forex not Cryptos

It would seem reasonable to assume that the world’s most popular trading platform for forex, MetaTrader would be the right choice for trading cryptocurrencies. It might not be the case for MetaTrader 4 which has been the dominant version of Metaquotes software was designed for stand-alone brokers that were managing their own risk. MT4 was not designed for adding exchanges and is not FIX (Financial Information Exchange) compliant. FIX is the standard protocol for financial institutions. When MetaTrader 4 brokers needed to add bank liquidity, they could only do so by using a bridge provider like One Zero or Prime XM.

Few Choices for MT4 and Cryptos

Cryptocurrencies pose a more significant problem for MetaTrader 4 and cryptocurrencies. There are a handful of solutions out there for those diehards that want to continue to use MT4 and cryptos. One is a company called evolve.markets. The company allows you to deposit and keep your balance in Bitcoin or Litecoin. The pairs that they offer are FIAT crosses like BTC/USD and BTC/EUR. The other solution is provided by a broker wex.nz which was formally known as BTC-e. BTC-e site was recently taken down and its administrator Alexander Vinnik was arrested in Greece facing French extradition.

MetaTrader 5 was built for Cryptocurrencies

MetaTrader 5 looks like it will play a much more significant role than its predecessor when it comes to cryptos. MetaTrader 5 was built being FIX compliant and can handle multiple asset classes. For Brokers, it is a no-brainer for them to use MT5. Cryptocurrencies might be the one thing that finally forces brokers to make a move from MT4 to MT5. Companies like B2BTC which is an institutional broker that offers cryptocurrency liquidity only provides an MT5 solution. Brokers like FBS which recently added cryptocurrencies are only offering it through MT5 as well. Aside from exchange connectivity, there are other problems with MT4 that make it a bad fit for cryptocurrencies. For cryptocurrencies, it is MT5 that wins the day.