One of the most popular trading platforms for CFD products has been Metatrader 4developed by MetaQuotes Software Corp, a financial trading software firm in 2005. The latest trading software released in 2010 was the MetaTrader 5 platform. MT5 as a successor has more functionality and up-to-date features compared to its predecessor MT4, but the number of MT5 users has yet to overtake the MT4 as the most popular CFD trading platform. This has raised the question of whether MetaQuotes will axe MT4 in favor of promoting MT5. Despite the MT4 platform is more than 15 years old, the latest update on MT4 was in 2019.
The mixed signals from MetaQuotes have posed the question of should the user start switching from MT4 to MT5?
Advantages of using MetaTrader 4:
One of the primary reasons for MT4 to remain is the consensus for MT4’s programming language, it utilizes MetaQuotes Language 4 (MQL4). According to MetaQuotes, MQL4 allows traders to develop trading strategies using programming language to create trading robots, technical indicators, scripts, and function libraries for trading on MetaTrader 4. All these functionalities significantly enhance traders’ ability to profit when trading Forex (foreign exchange trading), shares, commodities, indices and cryptocurrencies.
In particular, trading robots are also known as Expert Advisors [EAs] is MT4’s strongest feature. EA is an automated trading system on MT4 that allows for backtesting and optimization. Experienced traders recommend running testing on the EA’s performance and strategy before implementing it on the live market with real money. The demo account offers an invaluable opportunity to simulate a real market scenario for any beginning or experienced traders. Once the EA strategy has proven working, traders may open a small live account and gradually build up its account equity.
Moreover, the MT4 platform has proven to a stable platform that has last the test of time. Bugs and glitches are rare.
Is MetaTrader 5 the Future Trading Platform?
MT5 uses an MQL5 programming language that is considered more user-friendly than MQL4 and boasts higher efficacy. Scripts are able to be altered and redrafted by end-users and fewer functions are required to run in the background when executing an operation.
Furthermore, MT5 features a built-in economic calendar to provide data on macroeconomic events. The calendar can also be customized to suit individual preferences, for example setting the calendar to a specific currency.
Advanced market depth is also available on MT5 by right-clicking on the financial instrument (via Market Watch) and select market depth.
MT5 also allows both netting and hedging, whereas MT4 permits hedging only.
Conclusion: The Verdict
In summary, MT5 does offer all the things MT4 can offer, and beyond. However, it also adds complexity and may not be the most suitable platform for some traders who prefer simplicity and ease to use.
For Forex traders who trade only the Forex market, MT4 would be sufficient. For traders who need the added features on MT5, as well as trading other financial markets such as the stock market, it could be more suitable to switch to MT5.
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