Here’s a question which has probably crossed the minds of many retail forex traders: Is MT5 better than MT4?
It only takes a quick search online to see that MT4 is clearly the more popular of the two, both from a forex traders’ perspective as well as brokers’ offerings.
But why is this the case? After all, MT5 is newer software and has some great improvements over its predecessor, such as more chart timeframes and a greater range of default indicators.
One could argue that the problem lies with the fact that more brokers offer MT4, and that not many have started supporting MT5. This is true, to an extent, but brokers will always offer those platforms that traders are using the most, and so it’s prudent to look at why traders themselves haven’t necessarily been demanding MT5 support.
Perhaps the biggest reason is the programming language called Expert Advisors. Called EAs for short, these are the automated trading systems that MetaTrader is popular for. Programmed code written for MT4 EAs will not work with MT5. This is a drawback for those forex traders that devoted much time and energy learning how to code for MT4 to build their own strategies; not to mention those that have built their preferred library of EAs over time, and do not want to have to trawl the web for those same indicators to work with MT5. Custom indicators tell the same story: those written for MT4 will not work with MT5.
Hedging is another factor. MT5 does not allow investors to have concurrent trades running in opposite directions. It’s a significant omission for those looking to temporarily hedge when the opportunity arises.
The interface also warrants a mention here. Although the same layout is mostly retained between MT4 and MT5, the buttons on the newer platform are slightly larger and therefore take up more precious screen real-estate. A small issue perhaps, but when the focus should be on charts and pricing– the more screen space the better.
Personally, I think traders’ habits play a big part in the popularity (or lack thereof) of MT5. It takes no small amount of time and effort to learn, and customise, a new trading platform and forex traders have enough to concentrate on with their strategies alone. The old saying ‘if it ain’t broke, don’t fix it’ rings particularly true in this case.
MT4 is a great platform, especially once you get to know its ways. Until there are compelling reasons to change – with no downsides – I have a feeling that MT4 will remain the most popular for some time.
Spread bets and CFDs are leveraged products. Spread betting and CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.This information has been prepared by IG, a trading name of IG Markets Limited. The material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
It only takes a quick search online to see that MT4 is clearly the more popular of the two, both from a forex traders’ perspective as well as brokers’ offerings.
But why is this the case? After all, MT5 is newer software and has some great improvements over its predecessor, such as more chart timeframes and a greater range of default indicators.
One could argue that the problem lies with the fact that more brokers offer MT4, and that not many have started supporting MT5. This is true, to an extent, but brokers will always offer those platforms that traders are using the most, and so it’s prudent to look at why traders themselves haven’t necessarily been demanding MT5 support.
Perhaps the biggest reason is the programming language called Expert Advisors. Called EAs for short, these are the automated trading systems that MetaTrader is popular for. Programmed code written for MT4 EAs will not work with MT5. This is a drawback for those forex traders that devoted much time and energy learning how to code for MT4 to build their own strategies; not to mention those that have built their preferred library of EAs over time, and do not want to have to trawl the web for those same indicators to work with MT5. Custom indicators tell the same story: those written for MT4 will not work with MT5.
Hedging is another factor. MT5 does not allow investors to have concurrent trades running in opposite directions. It’s a significant omission for those looking to temporarily hedge when the opportunity arises.
The interface also warrants a mention here. Although the same layout is mostly retained between MT4 and MT5, the buttons on the newer platform are slightly larger and therefore take up more precious screen real-estate. A small issue perhaps, but when the focus should be on charts and pricing– the more screen space the better.
Personally, I think traders’ habits play a big part in the popularity (or lack thereof) of MT5. It takes no small amount of time and effort to learn, and customise, a new trading platform and forex traders have enough to concentrate on with their strategies alone. The old saying ‘if it ain’t broke, don’t fix it’ rings particularly true in this case.
MT4 is a great platform, especially once you get to know its ways. Until there are compelling reasons to change – with no downsides – I have a feeling that MT4 will remain the most popular for some time.
Spread bets and CFDs are leveraged products. Spread betting and CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.This information has been prepared by IG, a trading name of IG Markets Limited. The material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Editors’ Picks
EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes
The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.
When is the UK CPI data and how could it affect GBP/USD?
The United Kingdom Consumer Price Index data for January is scheduled to be published today at 07:00 GMT. GBP/USD trades slightly lower at around 1.3556 as of writing. The 20-period Exponential Moving Average trends lower at 1.3593 and continues to cap rebounds. Price holds beneath this gauge, maintaining a short-term bearish bias.
USD/JPY is looking for direction around 153.00 with key US data in focus
USD/JPY reversal from 153.70 has been contained above 152.70 on Tuesday. Major currencies are trading within narrow ranges amid thin trading volumes. Investors await the release of the US GDP and PCE Inflation figures to make decisions.
Editors’ Picks
AUD/USD holds lower ground below 0.7100, awaits FOMC Minutes
AUD/USD holds lower ground below 0.7100 in Wednesday's Asian session. Traders await more cues about the US Fed's rate-cut path before placing fresh directional bets. Hence, the focus will be on the FOMC Minutes, due for release later today, which will drive the US Dollar and the currency pair. In the meantime, the RBA's hawkish stance and a generally positive risk tone might continue to cap the Aussie's downside amid hopes for additional stimulus from China.
NZD/USD remains heavy near 0.6000 after dovish RBNZ hold
NZD/USD is attacking 0.6000, under heavy selling pressure early Wednesday, responding to the Reserve Bank of New Zealand's (RBNZ) dovish interest rate on hold decision. The RBNZ kept the OCR unchanged at 2.25%. Gowernor Anna Breman reinforced the dovish outlook at her debut press conference.
Gold: Is the $5,000 level back in sight for XAU/USD?
Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?
Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs
Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.
UK jobs market weakens, bolstering rate cut hopes
In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.
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