A short look at the Forex industry makes it evident that the two latest products of MetaQuotes (MT 4 and MT 5) dominate the trading sector. No matter how experienced and educated buyers and sellers are they prefer to use MetaTrader platforms. Meanwhile, a business owner needs to resolve a dilemma which solution to implement while running a brokerage firm.
There is a widespread myth that MT4 and MT5 platforms are based on the same functionality, and the fifth version is just the upgrade. In fact, this statement is far from the truth. First and foremost, the MetaTrader 4 terminal is tailored to the Forex market, while the 5th version is a solution compatible with both FX and stock markets.
Meanwhile, the herein-mentioned difference is not the only one. Let’s dive into the functionality of MetaTrader trading platforms to understand the pros and cons of every solution.
MetaTrader 4 came into existence on July 1, 2005, replacing the third product of MQ. The 4th version was designed specifically for margin trading and soon conquered the market. 16 years behind MT 4 is still the most in-demand trading platform among brokerage companies – according to statistics, more than 30% of Forex brokers stake on this platform.
The fourth version of MT is exceptionally easy-in-use and carries a set of up-to-date features simultaneously. Traders will find everything they need for technical and fundamental analysis.
As for the basic characteristics, MT4 is known for:
- The trading platform is tailored for FX trading. Users access CFD contracts on fiat trading pairs, cryptocurrencies, indices, and other financial instruments.
- The 4th product of MetaTrader is multilingual – the version is available in more than 30 languages.
- As for the desktop version, MT4 is compatible mainly with 32-bit OS. While installing the platform to 64-bit systems, headaches are possible.
What are the core reasons for the 4th MetaTrader version success? MetaQuotes had been supporting the product for a long time – updates and improvements made the platform adjusted to the recent traders’ needs and demands. Meanwhile, the producer announced that the support is over since July 2019.
Users outline the following key advantages of the MT4 trading platform:
- The platform is convenient and straightforward for users trading in the FX market. A set of trading tools, analytical instruments, testing systems, and advisers is large enough.
- MetaTrader 4 includes 3 execution modes and 8 order types: 2 market orders, 2 stop-loss instruments, and 4 pending ones.
- Powerful analytical instruments make it possible to analyze the dynamics of quotes. Furthermore, the platform contains advanced communication tools that help brokers communicate with traders in a real-time mode.
- Users get access to their account information – funds, trading history, and any other features are available in one click.
- MT4 encrypts the information transferred between traders and servers with the help of the 129-bit key. IP addresses of users are hidden as well.
As for the fifth version of the MQ product, traders appreciated the opportunity to enter the stock market, as this trading platform is compatible with both spot and margin trading. The platform got an updated interface and functionality.
While speaking of the main benefits compared to MT4, traders and brokers highlight the following pros of MetaTrader 5:
- MT5 extended its trading functionality with the Trade Alerts option, online economic calendar, news checker, and other useful instruments. The fifth version got 11 additional timeframes and new order types.
- The fifth version of MetaTrader unlocks access to MetaEditor where traders are able to build their own indicators and advisors.
- As for trading tools, MT5 carries more indicators onboard – for instance, the platform enabled users to access the Elliott waves forecast option and a possibility to leverage up to 100 instruments simultaneously.
On the one hand, MetaTrader 4 is a somehow old-fashioned solution, but crowds of traders understand this platform as the best way to access the FX market. MT5 is a more advanced option tailored for professional traders mainly.
While thinking over the best platform to integrate, keep your target audience in mind. MT4 is better for beginners, while the fifth version is adjusted to the needs of experienced users.
No matter which version you are going to implement, White Label MetaTrader connection empowers business owners to cut their expenses. B2Broker offers the WL solution for both MT versions, and experienced professionals fully connect a platform, leaving your troubles and headaches aside.