The challenges arising in the financial industry demand that retail traders use advanced software and tools, especially now when volatility is elevated in some critical sectors. The commodities market runs hot as demand/supply imbalances lead to bottlenecks, higher prices, and growing social unrest, while stock markets trade near or at all-time highs.
A comparison between MetaTrader 4 and MetaTrader 5, two of the most popular platforms in the world, is thus appropriate now since it can help traders understand which is the right pick for them, as well as potential downsides for each option.
Alt-text: comparison between mt4 and mt5
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MT4 vs. MT5
When it comes to MT4, it is a simple and easy-to-use solution for FX traders, allowing them to customize the interface depending on trading needs. MT5, on the other hand, is a successor to MT4, bringing additional trading features and being an option for an expanded array of assets like futures and stocks.
Although the MT5 interface has a similar layout, it has many benefits not seen with MT4. The number of available time frames is different, which allows traders to analyze markets in-depth. If MetaTrader 4 offers 9 timeframes, that figure increases to 21 with MetaTrader 5.
In terms of pending order types, 4 options are on MT4, while the number was improved to 6 on MT5. Traders are able to place buy stop limits and sell stop limits, on top of the usual orders like buy limit, buy stop, sell limit, and sell stop.
Retail traders need to cope with unprecedented conditions. The S&P 500 reached a new all-time high, while some commodities, especially energies, followed on the same path. With the improvements that come along with MT5, traders can use expert advisors created with MQL5, benefit from a wider range of technical analysis indicators, and monitor a wider range of charts, all at the same time.
How do these platforms compare to other solutions?
Alongside software developed by MetaQuotes, some retail brokerages provide proprietary platforms, which traders can use to have a unique trading experience. In doing so, companies manage to ensure personalized solutions that can address some of the latest challenges faced by their customers.
This is a benefit, yet at the same time, most of these proprietary solutions don’t support expert advisors the way MT4 or MT5 do. In some cases, traders have access to copy trading services, but automation capabilities are reduced.
Millions of traders still use software from MetaQuotes and brokerages want to ensure more diversity, especially now when new people with no financial background are joining the industry. For this reason, many of these brokerages offer multiple options when it comes to choosing a platform to work with.
What traders need to consider?
To conclude, it is good to see there are so many trading platforms available in the market. That gives traders the freedom to choose the right one based on their needs. In some cases, MT4 will suffice, due to simplicity and reliability. MT5 is a solid upgrade and comes with improved benefits.
Thirdly, proprietary solutions provide customization and help each broker stand out from competitors. In choosing the right pick, traders should consider the benefits associated with each platform, as well as their individual trading goals.
Disclaimer: This content does not necessarily represent the views of IWB.