Should you upgrade to MetaTrader 5?
MetaTrader 5 (MT5) is the latest trading platform developed by MetaQuotes. However, MetaTrader 4 (MT4) is the industry’s platform of choice, and the fact that most brokers still only provide MT4 accounts is a testament to its popularity among traders.
Some brokers have even taken steps to create their own proprietary platforms to improve their offering, yet most will also offer MT4 platform – if not both the MT4 and MT5.
While the MT5 platform is the newer offering by MetaQuotes, it’s actually been available for more than a decade now, but it still failed to convince the majority of traders to make the switch.
Both trading platforms are highly functional and stable of course, but since MT5 is more modern, it enjoys the latest technologies and has several improvements both in terms of trading tools and charting options as well as under the hood tweaks that make it faster and more efficient on modern devices.
There are some clear advantages to making the transition to MT5 and it’s definitely a trading platform that’s worthy of consideration, if it’s made available by your broker. However, if you are satisfied with MT4, you will likely have no reason to change platforms just yet.
MetaTrader 5 benefits
Firstly, whereas MT4 has 9 different timeframes available, MT5 allows a total of 21. These include 11 types of Minute charts, 7 types of Hourly charts, which offer a more granular approach for day traders and swing traders.
Also, MT5 was designed as a multi-market platform and therefore supports most major markets including centralized stock exchanges and futures, options and bonds. As such, MT5 traders can access more markets, and even manage multiple accounts through the same platform.
Another important advantage of MT5’s improved software is that it can take advantage of the higher processing power available to modern computers and other devices. While this change may not offer a dramatic improvement in day-to-day operations, the platform is significantly faster and more efficient especially when it comes to processing backtests and historical data.
Within the MT5 platform, traders will also find an economic calendar which is absent from MT4 currently. A forex economic calendar is a critically important tool for market analysis as it can provide insight into upcoming events and developments that may impact the prices of various financial markets.
MT4 or MT5?
Some traders are wondering which trading platform is the most effective, but the truth of the matter is that it highly depends on the trader and his trading strategy as both platforms are quite similar and highly customizable. However, it should be noted that beginner traders are more likely to favor the simplicity and ease of use of the MT4 platform.
That being said, both trading platforms are available on most modern devices with internet connectivity and therefore, if you are broker supports either MT4 or MT5, you will have no issues download the platform on your tablet/mobile or desktop computer and start trading.
The main reason the majority of traders find making the transition impossible is due to the fact that MetaTrader 5 has its own programming language, which is not backwards compatible with MetaTrader 4. This means that all third-party plugins, robots and indicators available in the MT4 marketplace are not supported by MT5.
The MT4 market is a huge draw for traders as thousands of tools and indicators are available to buy or download for free. As the popularity of automated trading has taken a hold of the industry, traders have come to rely on these tools available in MT4 and making the switch to a different trading platform that doesn’t support them wouldn’t be ideal – especially if they already invested in some of the tools offered in MT4.
As MT4 has been around for a bit longer than MT5 it has a more established following and therefore the community of developers that contribute to the tools available in the MT4 market is much larger.
If MetaQuotes finds a way to port the wide selection of indicators, plugins and trading robots from MT4 to MT5 then it will definitely have the potential to become the industry standard. However, MT4 currently offers more than enough charting and market analysis solutions for the majority of traders and those who are already familiar with trading on MT4 probably won’t find MT5 improvements enough to warrant the hassle of an upgrade.
CM Trading currently offers the MetaTrader 4 platform as well as CopyKat, a social trading platform, which can be used to copy the trades of some of the most successful traders in the world.
Open an account and start trading today!