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A Brief Comparison between the MT4 and MT5 Forex Trading Platform

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  • A Brief Comparison between the MT4 and MT5 Forex Trading Platform

    The largest financial market is the foreign exchange market. This market is commonly known as the forex market or the FX. If you are a forex broker, you will have the option to choose which trading platform to use. But your choice is somewhat interlinked with the choice of your broker. This is because of the fact that not all brokers offer all types of trading platform. This is also true that not all brokers have true compatibility with certain trading platforms. If this is the case, then they offer access through a piece of software that helps in connecting a forex broker’s dealing system with the platform. This piece of software is commonly known as a bridge. In this article, a comparison between the two trading platforms is discussed. The following information is taken from CornerTrader (https://www.cornertrader.ch)
    • The MetaTrader 4 forex trading platform, popularly known as MT4 platform, has set the industry standard. Almost all the brokers offer this trading platform. On the contrary, the MetaTrader 5 trading platform is less offered, despite the fact that both of these platforms are produced by the same company.
    • MT4 uses a programming language called MQL4, whereas, on the contrary, MT5 uses MQL5. One of the most exciting things about MQL5 is that, “black box” programming is allowed by this programming language. This enables you to program easily, and also, it provides a better framework for users as well as developers of trading robots and other expert advisors. However, MetaQuotes, the company that produced both these trading platforms, expanded this capability into MQL4 in the year 2014. So, it can’t be regarded as a difference between these two platforms anymore.
    Also, know that there is no backwards compatibility. Programs that are written for MT4 platform, cannot run on MT 5 platform. If you are a trader and want to upgrade your platform, this can be a serious drawback for you.
    • MT5 was actually made to do things that MT4 could not do. You can use it to trade the other markets excluding the forex market, for example, commodities, and stocks. And, the reason behind this is that it is better able to plug into centralised trading exchange.
    • Over MT4 platform, there are programming related advantages of using MT5. With its back testing function, you can trade programmed trading strategies at a much faster rate. Also, it enables you to back test multi-currency pair. Together this can help in speeding up back testing procedures to a great extent.
    What traders actually want from a trading platform is something that is not only reliable and easy to use, but also intuitive and does not crash. There may be some annoying features that MT4 has, but at the same time, it works well enough.
    Selecting a trading platform is as important as selecting a broker. So while selecting a trading platform, pay attention to the reviews that you will get to see on the internet.

  • #2
    Great article! As you mentioned, mt5 could have been a better platform but lack of interest because of the incompatibility issue led to the failure for mt5.
    MacroManPro - SimpleTrader
    FX4BTC Website

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    • #3
      Per this and other articles Metaquotes will no longer be upgrading MT4 https://smnweekly.com/2016/11/15/met...ding-platform/

      MT4 has become very stable for most of us so this may not become a problem for quite a while. But I imagine that Metaquotes will be pressuring brokers to use MT5.

      I think the biggest problem will be for the EA vendors since it's apparently not easy to port MT4 EA's to MT5.

      Cheers,
      Rod

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