• Paul
• On February 21, 2019

While there are perhaps hundreds of online trading platforms for traders to choose from, they are not all cut from the same cloth, meaning that different platforms will suit you better than others. The factors that go into choosing which platform will work best for you are varied, but are pretty straightforward nonetheless. In addition to personal preferences, you will also have to take note of the fact that some platforms are not equipped to work with certain forex brokers unless connected through a bridging setup, which can cause considerable lagging and possible malfunctions which might severely impact your trading management and execution.

Some of the most popularly used trading platforms out there are Metatrader 4 (MT4) and Metatrader 5 (MT5), which, although it may be considered the younger sibling, is an entirely different entity compared to its predecessor. Between the two however, it can be said that they have set the industry standard for what an effective online forex trading platform should be, and what it should be able to do. Faced with the choice between the two, it might be difficult to pick out which one will serve you best, and that’s the dilemma we’ll be trying to work out here.

Let’s get into a point-by-point review of the two platforms to help you figure out exactly which of the two should be your go-to platform as you seek out forex trading success.

Time-frames or Charts

MT4: There are 9 time-frames provided for your contemplation and analysis, with the platform providing you with the capacity to only view a few of them simultaneously. This can be a real disadvantage to traders who would wish to monitor trades taking place across various currency pairings.

MT5: With 21 time-frames available, ranging all the way from minute-by-minute to monthly time-frames, all spread out across an unlimited number of observational charts (over 100), multiple trade movements may be monitored with ease.

Installation Ease

MT4: The installation process here is as simple and straightforward as you could possibly wish for.

MT5: The manufacturer’s demonstration trading server, known as METAQUOTE, is brought up as an optional upon starting the setup process, which adds a few extra steps to the process.

Analytical Objects and Indicators

MT4: You will get to choose from over 30 default indicators at your disposal including moving averages, Bollinger bands, Fibonacci retracing and expansions, RSI, and more.

MT5: Over 38 indicators will be provided for your use, including 46 graphical objects and 2 analytical objects.

News Trading or Fundamental Analysis

MT4: In the news tab, you won’t have the benefit of a Forex Economic Calendar.

MT5: The Forex Economic Calendar included here will provide you with various features such as the Forex Factory, as well as impact, news event, impact, forecast, earlier events, and more items of interest and benefit to traders in real-time.

Interface

MT4: The interface here is a whole lot simpler and easier to grasp, especially with its one-click trading capability.

MT5: You will find quite a few differences here, including the search box and the details tab to be found within the market watch viewing bay.

Trading Modes

MT4: You won’t have much limitation when it comes to the strategy you wish to employ here. Note, however, that certain broker regulations will be enforced on their proprietary platforms such as AvaTrade, which has its own version of MT4.

MT5: You won’t be able to carry out certain strategies, such as hedging, by default here. In addition to this, the platform will automatically follow the FIFO (First In, First Out) trading policy.

Broker Compatibility

MT4: Most brokers will facilitate the platform.

MT5: The number of brokers supporting the platform is markedly lower than those supporting MT4.

At The End of the Day

Looking at the above metrics, it might seem like MT5 would have the upper hand against Metatrader 4 when it came to a head-to-head comparison between the two. Looks can be deceiving. The factors that make MT4 such a popular platform even in the face of the seemingly superior MT5 include the ability to hedge your trades on MT4, close orders regardless of their current position, as well as the automatic NFA rules compliance. In addition to this, MQL programmed expert advisory codes will not function on MT5 unless re-written in C++. It’s all up to you to see what you are able to work with best, in the end.