Weekly News Recap: MetaQuotes to Increase Licensing Fees, SEC Gets a New Boss, and More

MetaQuotes to Increase MetaTrader Licensing Fees

MetaQuotes, the developer of MetaTrader 4 and MetaTrader 5, sent a notice to its clients stating that it will increase licensing fees from January 1, 2025, as first reported by the Russian version of Finance Magnates. Although the software giant did not specify the price increase, an industry source predicted that it might rise by at least 20 percent.

“We would like to notify you of an upcoming amendment to the monthly license fees of the MetaTrader 4 products,” the notice sent by MetaQuotes stated, a copy of which was seen by Finance Magnates RU. “Our commitment to providing you with the highest quality products and services has led to an increase in operating costs, which, ultimately, necessitated this price update.”

MT5 to Surpass MT4 in Volume Rankings

Almost 15 years after its launch, MT5 is close to surpassing the MT4 platform in terms of CFD volume. This will mark a symbolic shift long-awaited by the industry. Since its release in 2005, MT4 has held the crown as the go-to platform for CFD trading. Its dominance is attributed to its user-friendly interface, extensive library of third-party tools, and exceptional reliability.

Traders appreciate MT4’s robust charting capabilities, algorithmic trading features via Expert Advisors (EAs), and a wealth of educational resources available online. Brokers, too, have favored MT4 for its ease of integration and widespread familiarity among clients. These factors collectively made MT4 a dominating presence in the industry, cementing its position as the leading platform for years.

Prop Firm Shuts Down After One Week

Has the retail prop trading market become oversaturated? Ascetic Capital's case, which spent more time announcing its launch than actually operating, might be tangible proof. The firm announced it is “refunding everyone” and ceasing operations. On the bright side, the refund waiting list won't be too long, given they only managed to sell a few challenges.

Ascetic Capital announced this week that it's initiating refunds and halting operations “before even a single trader gets funded to mitigate the damage.” According to their social media statement, the official launch in late November “did not meet even the most modest expectations.”

We Are Refunding Everyone

It is with heavy hearts that we announce the closure of Ascetic Capital. Despite our hopes and meticulous planning, the launch did not meet even the most modest expectations. In our first week, we only made four sales, and this unexpected shortfall led…

— Ascetic Capital (@AsceticCapitalX) December 3, 2024

B-Booking Is Risky for CFD Prop Firms

In the intricate world of financial trading, contract for difference (CFD) proprietary trading firms, popularly known as prop firms, face unique challenges, particularly in managing order flow and hedging risks. CFDs, by nature, allow traders to speculate on price movements without owning the underlying asset, making them highly attractive due to their leverage but also fraught with complexities for those managing these trades.

Sometimes, prop firms have to B-book the orders out of necessity as well. “The amount of data you can collect from a trader before they’re funded is insufficient to make any decision,” highlighted James Glyde, CEO at PipFirm. “The rules required to enable a prop firm to operate an A-book model would be highly unpopular with the average trader.”

“Prop Trading Is Another Iteration of Binary Options”: EBC Financial's UK CEO

“If you look at why traders are choosing to go to offshore brokerage entities, it’s happening because the client couldn't get what they wanted at home through the regulated entities,” David Barrett, the CEO of EBC Financial Group (UK), elaborated to Finance Magnates. “And a lot of that is due to leverage.”

Barrett himself oversees EBC’s offshore unit, which is authorized by the regulator in the Cayman Islands. While the Financial Conduct Authority-regulated entity only onboards professional clients, the Cayman Islands unit takes retail ones, offering them contracts for differences (CFDs) trading services. EBC’s Cayman entity is a subsidiary of the UK unit.

Bitcoin Hits a New High

Bitcoin reached a significant milestone this week, surpassing the long-anticipated $100,000 mark. Its market capitalization also crossed $2 trillion, setting another record. At some point, the price peaked at $103,500 before correcting slightly to $103,300. Bitcoin’s market capitalization has exceeded the $2 trillion mark within just 15 years of its existence, setting a remarkable record.

In comparison, the global market cap of gold stands at approximately $17.7 trillion, while Nvidia and Apple, two leading US-listed stocks, have market caps of about $3.5 trillion each. Microsoft is valued at $3 trillion, with Google and Amazon at $2.2 trillion each. The recent surge in the value of cryptocurrency was driven by Donald Trump's victory as the 47th President of the United States.

Trump Praises Bitcoiners

Bitcoin shattered the $100,000 all-time price level on Wednesday, a milestone that both excited the crypto community and drew a bold response from President-elect Donald Trump. Trump took to his social media platform Truth Social to take credit for the achievement, which was partly triggered by his appointment of a pro-crypto SEC chair, Paul Atkins.

“CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!” Trump wrote, attributing the cryptocurrency’s historic surge to his administration's pro-crypto stance. Industry leaders also joined Trump in celebrating the top cryptocurrency's $100,000 achievement.

Putin Touts Bitcoin as Russia Embraces Crypto

Russia's President Vladimir Putin affirmed Bitcoin's potential, saying the rise of the top cryptocurrency, Putin, represents an inevitable progress in technology. For Russia, cryptocurrencies are more than just innovation; they are also a strategy to counter sanctions and reduce dependence on the dollar.

“Who can ban Bitcoin? Nobody,” Russian President Vladimir Putin was quoted as saying at the VTB Investment forum, according to local news agency Taas. Putin's remarks highlighted his belief that digital currencies are a natural evolution in global finance. He reportedly said that these instruments will develop regardless of the dollar.

Trump Taps Paul Atkins to Lead SEC

US President-elect Donald Trump picked Paul Atkins to lead the Securities and Exchange Commission. Atkins, a former commissioner at the agency and veteran of conservative financial space, is expected to steer the agency toward a lighter regulatory approach.

Atkins brings a wealth of experience in the regulatory space. He was the former Republican SEC commissioner under President George W. Bush and has reportedly championed innovation in the financial markets in his past roles. In a post on his social media, TruthSocial, Trump wrote, “I am delighted to announce the nomination of Paul Atkins to be the next Chairman of the Securities & Exchange Commission. Paul is a proven leader for common-sense regulations.”

Crypto Market to Reach $10T, USD to Drop 30% against Gold: Saxo’s “Outrageous Prediction”

Saxo Bank predicted that the second Donald Trump administration would devastate the US dollar in 2025, ultimately benefiting the growing cryptocurrency market. These predictions are part of Saxo’s annual “Outrageous Predictions,” which outline outcomes that are improbable but occasionally become reality. Saxo also clarified that the “outrageous predictions” do not represent its official market forecasts.

The bold forecast about the US dollar came after the currency gained strength following Trump's victory as the 47th President of the United States. However, according to Saxo, potential massive tariffs on imports and budget cuts by the Elon Musk-led Department of Government Efficiency (DOGE) will severely harm the US dollar.

ASIC Releases Consultation Paper for Crypto Regulations

The Australian Securities and Investments Commission (ASIC) is seeking public feedback on a proposal to mandate a financial services license for cryptocurrency businesses. In the consultation paper released this week, the regulator used 13 examples of products, ranging from crypto wallets to meme tokens, to show how existing financial product definitions might apply to crypto businesses.

“Australia’s financial services regulatory regime is broad and technology-neutral,” said ASIC’s Commissioner, Alan Kirkland. “Many digital assets and related products are financial products under the current law. Stakeholders have been calling for greater clarity, and in response, we are releasing our draft updated guidance.”

Japan’s DMM Bitcoin Exchange Plans to Shut Down

The Japanese cryptocurrency exchange DMM Bitcoin, part of the DMM.com Group, is ceasing operations and preparing for liquidation. By March 2025, the exchange plans to transfer its customer deposits to SBI VC Trade, a local crypto exchange owned by SBI Holdings.

Announced this week, DMM Bitcoin and SBI VC have reached a basic agreement for the transfer of all customer accounts and deposit assets. “Under this agreement, customer deposit assets (in Japanese yen and crypto assets) in accounts opened on DMM Bitcoin will be transferred to us as soon as March 2025,” a statement (translated from Japanese) confirmed.

Revolut Applies for Bank License in New Zealand

Revolut, the British fintech firm, applied for banking registration with the Reserve Bank of New Zealand. This step aims to enable the company to offer additional products and services, such as interest-bearing savings accounts and more credit and debt options. Revolut launched in New Zealand in July 2023, providing an “All-in-one” app that combines payment, card, and money management services.

The company reports processing transactions worth approximately NZ$350 million and introducing 18 new products since its launch. “Receiving a banking license will allow Revolut to become the first global digital bank in New Zealand and will drive much-needed competition across the industry. We look forward to working with the Reserve Bank of New Zealand on our application,” Revolut's NZ Head Georgia Grange said.

Revolut's Plans for 2025

Revolut’s bold new strategy hints at a future where FinTech dominates physical and digital banking. The squeeze on traditional banks gets going. The FinTech giant’s plan includes AI-driven banking assistants, mortgages, business credit, and—wait for it—actual physical ATMs. Yes, Revolut, the poster child of the digital-first banking movement, is now dabbling in the physical world.

The message is clear: this isn’t about niches. Revolut wants it all your mortgage, your business credit line, and even your cash withdrawals. But, let's break down what this means for the financial industry and whether traditional banks can keep up with this audacious expansion.

AI Adoption in Fintech: “70% of Finance Professionals Utilize Automation for CV Screening”

2024 was a transformative year for the fintech job market. Companies increasingly use AI automation to source talent, manage applications, and even conduct first-stage interviews using AI bots. AI didn’t just ease into our professional lives—it disrupted traditional practices and changed how we approach job searches and hiring processes.

🥔 Only 10% of qualified candidates found by human recruiters? Nancy Xu says @MoonhubAI uses AI to reach 50-70%, uncovering hidden talent. The key? Human-AI teamwork. pic.twitter.com/QoMs7Ifuj6

— Vitruvian Potato (@vitrupo) November 30, 2024

According to a study by Workable, which surveyed 950 professionals across the US and UK, a significant 62.5% of respondents reported using some form of AI during the hiring process. In particular, 70% of respondents in finance and 62.7% in technology used AI to automatically scan and rank CVs.

Until next week!