Since its release by MetaQuotes in 2010, MT5 (MetaTrader 5) has been rated by many traders and forex brokers as the “best trading platform” due to its rich feature set, excellent stability, and low costs.Although MT5 has been widely acclaimed in the market, many traders and forex brokers still use the MT4 trading platform and are reluctant to switch. Furthermore, MT4 has long held the majority of the market share. Why is that?
- Easy to install, with a simple interface
Compared to MT5, MT4 is easier to install and has a simpler interface.
- Easier for Beginners and the General Public to Get Started
The MT4 trading platform does not have as many densely packed technical indicators as MT5, making it easier for beginners to identify closing prices.At the same time, while MT4 does not offer the same range of trading instruments as MT5—such as stocks and futures—its focus on specific investment products and target audience allows beginners to conduct more specialized and professional data analysis. From this perspective, MT4 has a broader audience and a larger user base, which largely determines the market share of MT4 versus MT5.
- MT4 also has features that MT5 lacks
The MT4 trading platform offers the hedging feature that most traders need—a feature that MT5 lacks. For some traders, the hedging feature is a safeguard for their accounts, and they are unwilling to give it up, which is why they continue to choose MT4.
- User Inertia
MT4 accounts and trading strategies cannot be directly transferred to MT5, which means investors need to set up new accounts in MT5. Although this is not difficult, it is somewhat cumbersome, and users accustomed to MT4 are reluctant to do so. For this reason, many new forex brokers prefer to opt for MT4 white-label solutions.
Although MT4 currently holds a significant market share, with the continuous updates to MT5’s features and its lower licensing fees, an increasing number of users are opting for MT5. At the same time, a hidden yet critical risk with MT4 is that, according to MetaQuotes’ strategy, it is a product slated to be gradually phased out and replaced—a development that will inevitably affect MT4’s future updates.Suppose one day the MT4 system stops receiving updates—this would pose a massive security risk for investors and forex brokers alike. Overall, MT5 is the way of the future!
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