Forex trading is continually evolving. Online trading platforms initially surfaced ack in the ‘90’s and paved the way for the online retail trading revolution. You could thin of a trading platform as a trader’s workplace. This I where they will spend the majority of their trading lives, it is the connection between the trader and the forex market.
MetaTrader 4, also known as MT4, by MetaQuotes Software Corp, has been extremely popular for over 10 years. This is considered the standard platform for forex traders across the globe. The reason that this platform captured the eyes of so many traders is for three main reasons.
Firstly, the numerous features that is available on this platform. It has so much to offer and is one of the main reasons for the platform going viral. These key features which made the platform so popular include:
- The easy to use charting package
- The indicator window
- Over 80 pre-installed indicators
- The navigator window
- The market watch window
The features are now the market standard but when MT4 first came out there was little competition and other platforms lacked the main features that MT4 offered. The advantages of being first to market certainly outweighed the disadvantageous in the respect.
Algorithmic trading is considered one of the standout strengths of MT4. The MQL4 IDE is built into the platform. This allows traders to create a personal advisor or robot of any complexity.
Finally, the high level of security on the platform has also helped make the platform extremely popular. As has the mobility of the platform, which is now available on desktop, mobile and browser.
MT5 has been slow to catch on, but traders are starting to migrate across to MT5 from MT4. There are certain changes to the platform which is making it the future of retail forex trading. These changes include improved charting and time frames, No FIFO rule, hedging is allowed, multiple market order ability, exclusive superior indicators and an integrated fundamental calendar.
Perhaps one of the most important changes is that traders are no longer restricted to using just built in analytical resources such as MT5 indicators, MT5 graphs and MT5 tables; traders are now able to create their own technical indicators, propelling this platform streets ahead of MT4.
This really is just scratching the surface of what each platform can do. When putting one directly against the other, MT5 is also much faster than MT4, it doesn’t hiccup or freeze, makings its stability a massive plus point. Stability when trading is essential for good trading and your own sanity! MT4 is simpler and more straightforward than MT5, with almost 30% fewer built in indicators so this may also affect which platform you prefer.
These are just a small list of the huge array of improved features that are on MT5, the next generation in trading. Whilst it is slowly catching on there is little doubt that this will be the future.