What is MetaTrader 4 (MT4)?

MetaTrader 4 (MT4) stands as one of the most renowned forex trading platforms globally, residing within the MetaTrader suite crafted by MetaQuotes Software Corp. Launched almost two decades ago in 2005, MT4 has garnered its reputation for its extensive customization options, a plethora of built-in technical indicators, an embedded programming language, automated trading functionalities, and sophisticated analysis tools.

MT4’s Prevalence

MT4 has amassed over 10 million downloads from the Google Play store alone, boasting a remarkable 4.8-star rating from more than 68,000 user reviews on Apple’s App Store. It’s noteworthy that MT4 is accessible both on desktop and through a mobile trading application.

MetaTrader is not a broker but rather a third-party trading platform that connects traders to forex brokers for trading purposes. Thus, irrespective of whether one opts for MT4 or its successor, MT5, selecting a reputable forex broker remains imperative.

What is MetaTrader 5 (MT5)?

MetaTrader 5 emerges as the contemporary iteration of the trading platform, succeeding MetaTrader 4. Similar to its precursor, MT5 is available for free, contingent upon the forex broker’s payment for licensing the platform for its clientele. While both platforms share a familiar interface, MT5 distinguishes itself through an expanded array of tradable instruments, catering to multi-asset traders eyeing commodities, stocks, CFDs, futures, options, and bonds.

Enhanced Functionality

MT5 introduces an array of advanced tools and features. The platform encompasses the MQL5 programming language, additional graphical objects and indicators, new statistical functions, an upgraded Strategy Tester, and the flexibility to both hedge and net trades.

Key Differences between MT4 and MT5

Technical Analysis Tools

Technical analysis tools are pivotal for traders to evaluate investments and identify market opportunities. MT5 surpasses MT4 in this realm, offering a wider array of default studies, expanded charting capabilities, and a revamped Strategy Tester optimized for contemporary hardware.

Charting

MT5 presents users with a broader spectrum of default studies, boasting 38 technical indicators, 44 analytical objects, and 21 time frames, compared to MT4’s 30, 23, and 9, respectively. This enhanced processing capacity empowers MT5 to run certain custom indicators and strategies not viable on MT4.

Drawing Tools

Analytical objects, or drawing tools, enable traders to annotate charts with lines, shapes, and symbols, offering greater precision and diversity on MT5 compared to its predecessor.

Hedging

While both MT4 and MT5 support hedging, MT5 extends its functionality by allowing traders to net their trades. This feature enables users to close, adjust, or reverse initial trades upon initiating trades in the opposite direction.

Cost

MT4 and MT5 are both accessible at no cost for retail forex traders. However, associated trading costs, such as commissions and spreads, vary based on the broker and their account offerings.

Why Use MT4 over MT5?

MetaTrader 4 boasts an established user base spanning eighteen years, compatible with numerous brokers globally. When choosing between the two platforms, traders should consider their broker’s offerings, market range, and execution methods.

Why Use MT5 over MT4?

MT5’s ascendancy lies in its multi-asset trading capabilities and advanced features, rendering it an ideal choice for traders seeking comprehensive trading functionalities.

Will MT4 Be Phased Out?

Although MetaQuotes has ceased updating MT4, the platform remains accessible for download, with no official statements indicating its discontinuation.

Can I Use Both MT4 and MT5?

Yes, traders can utilize both platforms provided their broker supports the entire MetaTrader suite.

Which Platform is Better for Beginners?

MT4 and MT5 cater to novice traders, with MT5 offering a more comprehensive range of tools and markets.

How Does MetaTrader Compare to cTrader?

While cTrader boasts a modern interface and a larger array of time frames, MetaTrader platforms maintain wider adoption and availability.

In conclusion, while MT4 retains its loyal user base, MT5’s enhanced features position it as the platform of choice for traders seeking advanced functionalities. With MetaQuotes ceasing MT4 updates, the transition towards MT5 is inevitable.