MT4 and MT5 trading platforms are almost universally available, few brokers do not offer MT4 or MT5 as an option, some brokers stick to one of the MetaTrader platforms and do not offer any alternatives。

The online brokerage industry has changed dramatically in recent years, and why a platform that was first launched in 2005 can still dominate the market.。An analysis of the advantages and disadvantages of the MetaTrader platform will determine the reasons for the current situation and what this means for brokers who make the most of the MetaTrader platform。

History of MT4 and MT5

MetaTrader 4, also known as MT4, is an electronic trading platform widely used by online brokers。It was first developed in 2005 to meet the needs of retail forex traders executing speculative strategies, introducing the public to tools and features previously reserved for professional traders.。It is developed by MetaQuotes Software and licensed by Forex Broker, which provides MT4 platform and software tools to its clients.。

MetaTrader 5 (MT5) platform released in 2010。It has similar features to MT4, but the big difference between the platforms is that MT5 is multi-asset。Traders who use it can access the foreign exchange market as well as single stocks, commodities, stock indexes, futures, etc.。

Millions of traders and hundreds of brokers use the MetaTrader platform with downloadable desktop format, WebTrader version and mobile app。

Which is better, MT4 or MT5?？

MetaTrader had a five-year lead over MT5, but MT5 did not immediately gain wider adoption, highlighting two features of the MT4 vs. MT5 debate.。First of all, MT4 is suitable for most traders, those who started using it between 2005 and 2010 have hardly changed to any other platform, and MT4 has a loyal fan base with the slogan "If it's not broken, don't fix it."。

MT5 not only provides multi-asset trading, but also has excellent features。The number of indicators in the MT5 default pack is 38, while MT4 has a few fewer, meaning that MT5 has more trend indicators and oscillators that MetaTrader users value.。MT5 also provides more time ranges, the default setting is 9 (1, 5, 15, 30 minutes, 1 hour, 4 hours, daily, weekly, and monthly), and you can also choose to create other time ranges。

In 2021, the MetaTrader 5 code volume has reached 7 million lines, while the previous version only had 2 million lines, and all upgrades and development have paid off。In June of that year, MT5 became the most popular retail trading platform in the world, with more brokers offering MT5 than MT4.。

The small print in a statement issued by Meta Quotes in June 2021 reveals a small detail that their use is measured by the number of brokers using the MT5 platform, not the number of traders。While MT5 is often the first choice for first-time traders, many veterans prefer MT4 and intend to stick with it all the time.。

Comparison of MT4 and MT5 with other platforms

MT4 and MT5 are very similar. When comparing with other platforms in the market, you can think of them as a pair。The internally built eToro platform is an example of a proprietary trading console unique to brokers。The easy-to-use features of the eToro platform make it ideal for beginners and documentary traders, but there is no charting tool to match MetaTrader。Some brokers also offer alternative third-party platforms such as cTrader, and Pepperstone offers its traders the opportunity to choose between MT4, MT5 or cTrader.。

Finding the best platform ultimately comes down to trying to build the one that works best for you。Trading can be booked using virtual funds from a demo account, trying and ensuring that all steps from researching materials to trading execution are appropriate。The AskTraders team draws on their own experience as well as that of the wider trading community。

Large MetaTrader Community

The MetaTrader platform has a "first-mover" advantage over other platforms, as early traders in Forex trading have built a thriving MT4 user community.。Online forum to support MetaQuotes Language 4 (MQL4) users to help users integrate programming languages and develop indicators and trading strategies for free。The crowdsourcing model of the project was extended to MQL5 at its launch and also became a source of expert advice and opinions for MT5 users.。

No other platform on the market has a community of this size and has been around for years, making it hard to spot the ills.。

MetaTrader and Automated Trading

Quantitative hedge funds using algorithms and automated systems dominate financial markets。The first release of MT4 marks a major upgrade to the systematic trading tools available to retail traders, and it is the first time that "little people" have access to easy-to-use automated trading resources similar to those used by large institutions.。

The EA service is groundbreaking and is used by millions of traders and analysts running system models, making it ideal for documentary trading。Of course, successful traders can also become leading traders and earn passive income。

MetaTrader programming language is flexible, comprehensive and easy to learn。It is also highly scalable, allowing the creation of an unlimited number of automated strategies, including those that support straddle-based options, hedging and scalping techniques.。

If you can't find a third-party EA or indicator, you can develop one yourself. If you are not a programmer, the MT forum is a good starting point。With a large fan base, much of the groundwork for the core model has already been done by others, so those embarking on creating a new model can take advantage of the code without having to stand on their own.。The positive atmosphere on the platform makes it easy to learn from others。

Portability of MetaTrader

Currently, there are over 300 different brokers offering the MetaTrader platform。An ingenious feature of the MT service is that if you don't like the current broker or want to take advantage of improved terms and conditions, you can easily migrate all EAs and indicators from one broker to another. You can also avoid learning to navigate. Downtime caused by different platforms。

Simply open an account with the newly selected MetaTrader broker and copy your existing trading console to the new framework to run。

Cost-benefit analysis of MetaTrader

A large number of brokers use the same third-party platform, leading to fierce competition between companies。Fewer commissions, spreads and financing fees make trading on the MetaTrader platform increasingly cost-effective。At the same time, the platform can also be incentivized to provide better additional services, such as research and analysis resources, to attract potential customers.。

Other platforms such as Thinkorswim or eSignal offer similar services, but require traders to pay an upfront fee, which can be used to access platforms, charting tools, data sources, historical price data, testing facilities, and more。

Traders who make initial payouts may feel "forced" into trading situations they may turn to。Therefore, the need to generate returns to break even puts full pressure on the decision-making process。It may also cause traders with small accounts to trade on position sizes based on their cost basis or meeting a broker's monthly quota, rather than trading the market as is.。

Conclusion

One of the most important factors in the success of MT4 and MT5 is that in a self-fulfilling way, it has enabled it to occupy a position in the market that other platforms cannot compete with。When MetaTrader launched MT4, they were right in their judgment and the platform became the "preferred" trading console for retail traders.。MT5 represents the logical next step needed to provide traders with a successful exchange。

Alternative platforms offer different ways of trading, and it's always good to try new ideas。For starters, the MetaTrader platform offers a range of powerful software tools and the support of a global community, all contained within a cost-effective trading platform.。