Welcome to our guide into the reason why MT4 and MT5 are so popular. We will learn why forex traders use it so much. You will also get to know what you, as an FX trader, can gain in using this platform. Also, if you are new to the forex market, you can search for the best forex brokers on our forex broker reviews.
MT4 was born in 2005. MT5 arrived about five years later, but the story of MetaTrader goes back a little further than that. Forex traders recognize this software immediately because it dominates the market. If you are planning on becoming an FX trader, you will find it hard not to use MT4 or MT5.
The MT4 story starts back in the year 2000 when it was nothing but a simple charting package. It evolved over the years from a charting tool to become the only platform traders use.
As you will see in our forex broker reviews, the best forex broker is one who offers multiple platforms. MT4 and MT5 are always staples. Since MT4 first hit the market, there have been many upgrades, which have made it even better.
Back in the year 2000, when Online Retail Trading was in its infancy, MT4 was just a charting tool. Even in 2005, there was not much online retail trading going on.
Just as with any other product, the advantage of being the first to arrive on the market, cannot be understated. That is what happened with MT4. Familiarity with the product is also a key factor because all you need to do is get the demo or try out the live version for a limited amount of time.
Before we continue, let us settle something first: MT4 vs. MT5? Which one should you go for?
MT4 vs. MT5: Battle of The MetaTrader Versions
Ladies and gentlemen, understand one thing first. The MT5 is regarded as the sister of the reliable and trusted MT4. There are some differences between the two. The most crucial difference which forex traders should note is that they have different market functionality.
To be honest, the platforms are very similar in almost every way. The backend of the platform is what’s different. The way that MT5 is coded is what makes it easier to work with than the predecessor.
Now, you are probably an average FX trader who is not looking to tinker with the coding of the programs to change algorithms and whatnot. For that reason, this should not be a concern. There is not much difference between the two. They’re practically the same.
Both MT4 and MT5 come with the same indicators, the same execution time, and there is nothing about aesthetics that could clue you in on any noticeable visual differences.
What is The Big Deal with MT5, Then?
Well, the company behind these fantastic platforms is trying to push the forex traders over to the new younger version, for no other reason other than to ‘upgrade.’ It is not much of an upgrade because the only thing about MT5 that was different when it came out was that it has more assets to offer, like stocks and whatnot.
However, recent upgrades were made on MT4 to include the same things. That is why people do want to move to MT5. It is a hassle trying to download something new, install it and then just start using it with the same indicators and features that you already have.
Most of the FX traders are comfortable with what they have and the big deal…well, there is no big deal here? You can use either of them. They are the same.
Plus, some people have tweaked the programming on MT4 to make their own EAs. They do not want to move to MT5, learn a new language so that they can redo their work all over again.
Alright, let's get into what brought use here, finding out why MT4 and MT5 are so prevalent than most of their counterparts, among many forex traders.
Here’s Why MT4 and MT5 are So Popular Among FX Traders
We are going to look at the things that most forex traders cite when asked why they prefer these platforms.
1. MT4 Is Easy To Use
Why? Because they came first, people have only ever known MT4. Most of the market’s FX traders went into the game just as MT4 was beginning to take hold. It was the first thing they found. Anything new looks difficult and different.
That aside, even though it came first, the platform is easy to use. Trading forex or CFDs can be challenging for any forex trader. Why should you make it any harder than it needs to be when you can use MT4 or MT5 and reap the benefits of having most of the tasks handled.
There is always a learning curve that FX traders need to get past so that they can be able to use these platforms effectively. However, with MT4 and MT5, specifically, there is no need to worry because the learning curve is not that steep.
The processes are made easy, have shortcuts, and are easy to remember. The interface is simple so that you do not get lost in a host of features. The MT4 and MT5 platforms have made it so that forex traders do not need many steps to make an order.
- If you want to use MT4 and MT5 to make an order, all you need to do is use the F9 button on your keyboard or just click on the New Order button the interface, or you can just click on Tools and go to New Order.
- What’s more, as an FX trader, you can even create a new order by using the open chart by right-clicking on the chart and then clicking on Trading and New Order.
Think about that for a second. What FX trader wouldn't want to have four smooth pathways like that, just for creating a NEW ORDER?
By being easy to use, they have created a platform that can be used for many purposes, and that is why MT4 and MT5 are going to be popular for years to come. The best forex brokers on our forex broker reviews have both platforms for you to use when you sign up.
2. The Multi-Purpose Nature of MT4 and MT5
There are many functions that you can execute just by having these platforms. They are all features essential when it comes to trading. Take this example;
There is a News Bar on the platform where you can get access to all the new that moves the market and other events, as they happen in real-time. Some of the news has an immediate impact, and you can just glance at it, see what's about to happen, and position yourself correctly to be on the right side of the market when it moves.
Here’s another example of how that is very beneficial:
- When Nigel Farage’s party in the UK election said that they were not going to contest the December 12 elections, the GBP pairs rapidly moved around. Without the news bar, there is no way you could have known immediately what was causing such a shift.
The news is not the only function you will find when using the MT4 and MT5 platforms. The forex traders need to access things like the interactive charts that you can use to study the market and analyze the available assets before you get in to trade.
The MT4 and MT5 platforms have the Market and Code Base tab on the interface window that allows any FX trade on the platform to access the MQL community directly. There, you can buy things like:
- Expert advisors
There is no need to go anywhere else to pay for what you buy. You can simply pay for what you purchase using the money that is in your account. If that is not convenient for a forex trader, then what is?
Let's say you go on the CodeBase tab, and you find the robot that matched exactly what you would like. You click on it, or just go to the Market tab and lick to be connected to the market where you take a look at the product and then pay for it right there and then.
The other significant functions that most of the forex traders like about MT4 and MT5 include:
- They can have access to the economic calendar, which shows an FX trader all the significant events and news about the economy, from other countries.
- Funds transference can happen between multiple accounts, all connected to the same trader.
- You can access the community chat function because it is embedded into the platform.
- You can fill only just a portion of your order if you want to.
- If you want to avoid slippage, there is a ‘fill or kill’ function that can help you with that.
With features like this, you will be able to enjoy all the superior services that you might not be able to find with other retail forex traders.
3. All Your FX trader and CFD Needs In One Place
Typically, you would have to use a different platform for CFDs and a different one for your forex needs. Now, all FX traders can use MT4 and MT5 for everything without having to switch to any other software.
You can think of this as your access to the entire market catalog. If you need to trade currencies, they got you. If you want to trade CFDs on commodities, stocks, and indices, you can do that here with no issues at all.
Any trending or moving market is available to you as a forex trader when you use MT4 or MT5. You never have to miss anything. You can go from one market to the next, with a few clicks.
4. Automated Trading Using Robots
If you read the forex broker reviews, and you find that the best forex broker you choose has MetaTrader 4 or MetaTrader 5, then you can be guaranteed of Experts Advisors and robot trading. This feature is the icing on the MT4 and MT5 cake.
These platforms were the first to use virtual forex robots that open and close positions automatically. Even better is the fact that you can change the code because it is built right into the interface to design your forex robot and optimize it to be just how you would like it to be.
Forex robots are so popular now that classes are held worldwide with record attendances to help people learn how to tweak the program so that it helps them become better FX traders.
5. You Can Have Many Versions
Presently, the MT4 and MT5 platforms are available on desktop, the web-based version (called WebTrader), and the generic platform for mobile phones. The MetaTrader 4 has something called Multitrader for when a forex trader wants to manage more than one account at a go.
With each of the mobile platforms, you will find that there is one designed for use on iOS systems and one for Android devices. You can use the platform for both smartphones and tablets.
With people being so attached to mobile devices, it makes sense that they should be able to use the MetaTrader 4 and MetaTrader 5 platforms while on the go. It is incredible what you can do as a forex trader with this platform.
To Wrap Up…
Many of the forex traders are familiar with the product, and that is why they mostly use it and not other products like IRESS and cTrader. As you will come to find out, there are not many different options that are as good as this one for an FX trader.
There is a lot to talk about when it comes to platforms, but we think you get it now. The platform is one of the best for a reason. Just test it out during the demo account trials, and you will see what we mean.
Even with the advent of other platforms that could become competitors, the world of forex traders remains firmly rooted in the use of MT4 and who can blame them. Try it out for yourself and see what they have to offer.