As a Forex Trader, you have the freedom to choose which trading platform to utilize. But no matter what it is, you must settle only with the best trading platform that is available today – the MetaTrader 4 (MT4) and MetaTrader5 (MT5).
MetaTrader 4 is a trading platform that is widely used by Forex traders. It is said to have been set under the industry’s standard. Almost all Forex brokers nowadays offer this trading platform to their clients. MetaTrader 5 is another of MetaTrader and also has upgraded tools as with MetaTrader 5. Both are very famous trading platforms but have their own strengths and capabilities.
Forex traders can choose which trading platform to take, but this also depends if the broker is offering the type of trading platform that the trader wants. That is why you need to choose the right broker who can offer a certain trading platform and assist you with your needs.
The MT4 trading platform was first seen last 2005. It is specially made for Forex traders which is why most Forex brokers offer it to their clients. MT4 is also extremely popular nowadays mainly because of its user-friendly interface and top-notch trading tools. It offers MQL4 language, allows slow single backtesting, traditional time frames, and has four types of pending orders.
The MT5 trading platform is another version of MetaTrader as it was only launched in 2010. Not too many Forex brokers offer this trading platform as this is much less popular than MT4. It greatly suits U.S traders because it complies with the no hedging rule of the US. This trading platform can cater beyond Forex like Options, Futures, Commodities, and Stocks.
Since MetaTrader 5 has been released 5 years after MT4, many traders might see it as an updated version of MT4. However, this matter is not entirely true as MetaTrader 5 is designed to perform several things that MT4 couldn’t really do. The user interface might look the same but the market that they are focusing on is different. MT5 is aimed to excel in different markets other than the Forex Market.
Another known difference between MT4 and MetaTrader 5 is the latter’s compliance with the ‘no hedging rule’ of the United States. According to this rule, the clients of Forex brokers situated in the US must deal under FIFO or First In, First Out basis. So, basically, MetaTrader 5 was created to attract the U.S market and non-forex traders.
So, if you are asking if MT5 is good, the answer is that it is excellent. It has high-tech capabilities in some areas that MT4 couldn’t cover such as backtesting and the depth of market (DOM). But if you are a Forex trader and living outside the US, MT4 still works best for you. It is also the choice of many FX traders despite the emergence of MetaTrader 5. Anyway, they have their own strengths and weaknesses. The decision now depends on the trader, as to whom they think works best for them and can cater to their trading needs.