MT5 (MetaTrader 5) and MT4 (MetaTrader 4) are both forex trading platforms developed by the Russian company MetaQuotes. MT5 is an optimized and upgraded version of MT4 and is currently MetaQuotes’ flagship forex trading platform.
Advantages of MT5
1. More powerful functionality, primarily reflected in
- MT5 offers two position-tracking systems, and brokers are free to choose between them;
- It supports EA trading and offers a wide range of features—including intraday charts, smart strategies, indicators, tradable instruments, chart templates, and an economic calendar—all of which are more comprehensive and powerful;
- Supports partial order submissions, rather than being limited to 10-lot increments;
- In addition to the MetaQuotes language supported by MT4, MT5 also supports C++ programming;
- It’s easier to use.
2. Lower licensing fees
There was a round of increases in MT4 platform service fees in 2017, and since MetaQuotes is focusing on promoting the MT5 platform, MT4 platform service fees may continue to rise;
3. Higher safety factor
MT5 is already MetaQuotes’ flagship product, so human and financial resources will inevitably be prioritized for MT5. Once MT4 stops receiving updates, cybersecurity issues—such as hacker attacks—may arise, posing incalculable security risks to forex brokers.
Reasons why domestic and international forex brokers still primarily promote MT4:
1. Fear of losing existing customers
Looking at the current foreign exchange market both domestically and internationally, MT4 remains the dominant platform, and using MT4 has become second nature to many users—and habits are hard to break. If a forex broker were to rashly switch to the MT5 platform, it could lead to a loss of customers.
2. Switching to MT5 will cause some short-term inconvenience for traders.
MT5 does indeed offer more powerful features than MT4, but because there are some data incompatibilities between MT5 and MT4, this can cause traders a number of short-term inconveniences and difficulties in adapting.For example, trading strategies from MT4 cannot be easily copied to MT5, nor can all account data from MT4 be fully transferred to MT5; users must create new accounts and set up strategies from scratch in MT5.
In our view, forex brokers should currently continue to offer both the MT4 and MT5 platforms to retain loyal users of the existing MT4 platform, while also gradually guiding traders toward MT5 to avoid security risks that may arise once updates for MT4 are discontinued.
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