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When MetaQuotes Software Corp. announced the MetaTrader 5 program, users expected to see an updated version of the early MetaTrader 4. In fact, it turned out that these are two fundamentally different platforms, each with its own features. Let’s examine the differences between MT4 and MT5.
Platform tools: a brief account
The information trading platform was released in 2005. The complex is designed to work with currency pairs, futures contracts and other forex instruments. The developers paid great attention to server performance and security. MetaTrader 4 is still the most popular due to the combination of functionality and user-friendly interface.
The first release of the new product took place in 2010, and the developers expected it to completely replace MT4. MetaTrader’s improved version is more functional, flexible, and faster. Operations that used to take minutes are now completed in seconds. However, despite the innovations, users are not sufficiently interested in the platform’s novel version. Now both versions of the platform have equal shares of the market and operate independently of each other.
Fundamentally, MT5’s main distinction is that it was created as a multi-asset platform. MetaTrader allows you to simultaneously trade on several exchanges at once, i.e., in addition to forex, users have access to cryptocurrency exchanges. Access to stock exchanges is also available, but this function is not very popular.
As for the overall functionality, the key alterations mainly affected the platform’s trading portion. In the new version of MetaTrader, clients obtained more analytics tools and additional elements, such as a calendar and a full-fledged order book. The number of order types has also been increased, new pending orders have appeared, and the order execution policy has been altered. The interface design, however, has not changed significantly.
Today, the MetaTrader 4 and 5 platforms are a classic trading solution, based on which you can implement additional functionality using various services and plugins. However, different programming languages were used to create MT4 and MT5, making the platforms completely incompatible and all additional solutions – separate for each version.
Best choice for a broker: MT4 or MT5
MetaTrader 4 is still much loved by traders, as the platform quickly conquered the market and spread, and the transition to the fifth version is not as active as the manufacturers wanted. However, brokers work in a highly competitive environment, so they are guided by other principles when choosing a trading solution.
- The MetaTrader 5 platform is able to ensure a large market capacity and prompt order execution without failures or slippages. More reliable conditions for the execution of orders attract traders, which means profit to brokers.
- Developers are improving the platform’s fifth version, practically ignoring the previous one. Sooner or later, it will take a leading position in the market.
- The number of additional MetaTrader 5 plugins for the fifth version of the platform is much greater, which means that brokers have even more opportunities to optimize their work.
Conclusion: If, when choosing a platform, a broker focuses on trading potential and earning opportunities rather than on popularity, MetaTrader 5 is the best solution to get started.