If you have been searching the Internet for things related to Forex Trading, you surely have come across famous trading platforms, MetaTrader 4 and MT5. These two almost have the same name but they have clear differences worth mentioning. Although there are so many trading platforms available for Forex trading nowadays, these two are considered very popular and reliable. But these two platforms need to be understood well for you to take advantage of their benefits.
To understand these two trading platforms, let us draw a clear line between these two. MT4 is a bit older than MT5 but the latter is more advanced when it comes to trading tools and algorithms. These two are highly praised by a lot of traders from different parts of the world and it is preferred despite the existing competitors.
As mentioned above, MT4 is much older compared to the MT5 which was officially launched in 2005. MT4 uses an MQL4 language which remains to be the most popular trading platform utilized in the market nowadays. The majority of traders in Forex use this trading platform despite the launch of the MT5.
But MT4 is created particularly for CFD and Forex trading. Since its launch, MT4 has become an industry-standard fit for this market as they easily satisfy the needs of each trader. To access the MT4 platform, you will have to find a broker that supports the use of this trading platform. Brokers will provide you with access directly to this trading platform or a bridge for you to access it. When it comes to user experience, it is definitely top-notch. And since everyone is using it, you can ensure that it is really a great platform.
MT5 is the newer and updated sibling of MT4 which was released 5 years after the release of MT4. For this platform, major improvements in its system were created. This includes additional time frames, economic calendar, Depth of Market Data, and also language capability. Moreover, MT5 uses an MQL5 language which can be used in the previous version of the trading platform but not the other way around.
Unlike the earlier version which is for Forex and CFD traders only, this trading platform is for various markets including stock, commodities, and futures. MT5 is created with an aim to cater to different types of traders and not to compete with its predecessor.
Which trading platform is the best for you?
For you to know which trading platform best suits your trading needs, you must understand well what type of trader you are. MT4 has been widely used by Forex traders and CFD traders for many years and it is considered the most appropriate platform for this market type. If you think that the older platform fits you, then there’s no reason to change platforms.
But, if you are diversifying and want to invest in other markets, then you must give MetaTrader 5 a try. MT5 will surely give you a great experience and because of its upgrades, this is a great trading platform for traders who want to trade on different markets at the same time.