The MT4 vs. MT5 debate continues, now that millions of traders are using trading software developed by MetaQuotes to get involved in FX, stocks, indices, or other popular financial markets. Both are reliable platforms and due to an established track record, there is no doubt any trader can use them to spot and take advantage of new trading opportunities.
However, the broad range of variables influencing asset prices, such as growth concerns, inflation, or fiscal/monetary stimulus, makes traders have a more in-depth approach when getting involved in the market. MT4 and MT5 are trusted platforms but it is important to highlight their main benefits as well as where can traders use their full potential.
What are the benefits of MT4?
Designed for FX and derivatives trading, the MT4 platform is a solution traders can use to analyze financial markets using a variety of tools, including trading robots (Expert Advisors), market news, technical analysis indicators, or one-click execution.
This is primarily a platform for FX traders, even though most of the brokerages covering MetaTrader 4 have already integrated other financial assets like stocks, indices, commodities, or ETFs.
Updates are constantly provided, which makes the platform in line with all the latest requirements. Brokerages are also offering customized versions for MT4, but still, as compared to MT5, it lacks several important features.
What are the benefits of MT5?
Moving to MetaTrader 5, this is a platform designed to be multi-asset from the start, offering superior tools for a better market understanding. On top of algorithmic trading, it is possible to conduct copy trading services with MT5, a feature that beginners might find very useful.
As compared to MT4, traders can benefit from the added value, via Market Depth, a Market of Trading Apps, or virtual hosting (VPS). The user interface is similar in many ways, yet due to the extra features, some traders might find MT5 a more suitable platform.
Traders using Expert Advisors (EAs) will need to consider that upgrading from MT4 to MT5 will mean the algorithms will need to be rewritten. That happens because MQL4 and MQL5 are two completely different programming languages. Many complaints have been addressed with regards to this issue, yet for the time being, no solution has been found, forcing traders to adjust their EAs when migrating from one platform to another.
Is there an ideal trading platform?
One of the biggest mistakes made by beginners is believing in the existence of an ideal trading platform. In reality, it is important to assess what assets will be traded, what strategies will be used, and what other tools are needed to conduct the daily operations properly. Only after all these questions have been addressed, the trader can start and look after a platform offering what’s needed.
MetaTrader 4 and MetaTrader 5 are still used globally, but they should not be taken for granted. There is an abundance of information available online and traders can find out more before deciding what to pick.