Forex traders use platforms to execute trades, and the platform chosen has a great influence on the outcome of the trade and should be carefully considered before making a decision。

Every online broker offers a range of platforms for traders to choose from, most only offer one to three。Platform selection is an integral part of a trading strategy and should be based on an analysis of platform capabilities。This article will discuss the advantages and disadvantages of MT4 and MT5。

MetaTrader 4

MetaTrader 4 is one of the most widely used platforms among brokers. The software sets the standard in the field of quality platforms and is therefore a reliable choice for forex traders。The platform, also known as MT4, was released in 2005 and is used by brokers and traders worldwide.。

MetaTrader 5

MetaTrader 5 was closely linked to MT4 and released in 2010, but it was not an updated version of the original platform.。Indeed, the two platforms are very similar, implementing the same type of standards and produced by the same company。

MetaTrader 5 is designed to accomplish different goals for different reasons。This additional feature of MetaTrader 5 is to serve traders in other markets (such as stocks and commodities), not just the foreign exchange market。

Major Differences

There are several other notable differences when comparing MT4 and MT5。The initial difference between the two platforms is that MQL5 is used to encode MT5, while MQL4 is used to encode MT4.。MQL5 is more mature and offers a more advanced user and developer experience。Although some of these advances were applied to MT4 in 2014, MT5 still has more advanced backtesting capabilities than MT4.。The backtest program allows you to test strategies at a faster speed, and also allows you to back test multiple currency pairs at the same time, improving the entire strategy testing process。

According to US regulations, MetaTrader 5 does not meet the requirements for providing hedging to users。Regulations state that people who trade with US forex brokers must close the first trade before closing the second。MetaTrader 4 follows this approach, called FIFO (F.I.F.o) basis, but MetaTrader 5 does not follow, resulting in the risk management strategy for hedging not being available。

Two platforms cannot be upgraded at the same time, nor are they backward compatible。This means that the update made on MetaTrader 5 does not apply to MetaTrader 4, which is why this version is not an updated version。

Choose between the two

Choosing MT4 or MT5 depends on the trading function you want, not which of the two has the best quality。MetaTrader 4 is perfect for those in the Forex trading industry who want a simple and efficient trading platform, it has some of the best software that can perform all the basic functions of the Forex industry。If you want to complete a lot of backtesting or want to trade on other markets (such as stocks and commodities), MetaTrader 5 will be a better choice。

Despite the additional advantages of MetaTrader 5, MetaTrader 4 is still a reliable option that can be executed at an advanced level and is easier to obtain from brokers。Many very successful traders use this platform to execute their trades and support its capabilities. Its fast performance, accessibility on all devices and easy navigation make it one of the best platforms in the industry。