It started eleven days ago on the ForexFactory forum, but Ive read it first about a week ago on a TalkGold forums thread titled “Mt4 Brokers Are All Scam Brokers By Definition”. Of course, Ive got interested in this topic because Ive been trading on MetaTrader brokers accounts for almost two years and I have never thought of them being a scam by definition”. That made me read both of the threads thoroughly.
Here is the main problem that is pointed out in those threads. Back in February 2006 MetaQuotes announced a 5-day test of the Virtual Dealer Plug-in on the demo trading server. This plug-in was designed to imitate “real dealer work random time of answer, requote etc [sic!]”. Eleven days ago a post on ForexFactory forum shows a part of some documents scan describing plug-ins functionality, including such things as “automated moving up the Limit & Stop Level and Freeze Level according to the preset list of news time”, “disabling (setting, modifying, deletion) of pending orders during news receiving”, “Max Losing Slippage”, “Max Profit Slippage”, etc. Thread starters and many other forum participants believe that this plug-in is being used in all MetaTrader 4 brokers on real trading accounts and thats what making all such brokers the cheaters. The fact that MetaQuotes deleted all threads about the Virtual Dealer Plug-in on their forum added even more confidence to those traders.
So, what now? Personally, I can say that theres no actual proof that this plug-in is used on real accounts on any of the MT4 brokers (I am not saying all). I am almost sure that this plug-in (or its newer version) was used during the Automated Trading Championship by MetaQuotes (this competition was for demo accounts). Another point even if this plug-in can be used on real accounts and is used there by some of the MT4 brokers, it doesnt imply that all of them are using it and are outright scams.
What will happen when more traders will read about this problem? Those, who thought that the MetaTrader brokers are evil, will definitely become more sure in their belief, those, who didnt mind before, most probably wont mind this problem too.
What should you do in this situation? I dont know, but Ill continue to trade with the brokers Ive been using for a long time now, if I find that they hunt my stops or have a high slippage in their favor I will immediately switch to another broker. But I dont think that its a good choice to leave a broker, with services of which I am currently satisfied, just because of some suspicious plug-ins existence.
