Market Watch

Comparison of MT4 and MT5 Traders for Brokers

MT4 and MT5 are top two trading platforms preferred by most popular forex brokers. These platforms, which have been leading the industry for years, are in high demand as they provide traders and brokers with a wide range of action and a high degree of compatibility. For those who are going to start a Forex broker, it is essential to know the features of these two popular platforms and what features they offer to retail and institutional traders.

What is Metatrader 4? What are its features?

You can trade in exchange rates and parities via MetaTrader 4. MetaTrader 4 is a simple to use platform. You can make purchases and sales transactions at the forex brokerage house via MT4. Today, most forex companies are linked to MT4, and after selecting your institution on the platform and logging in with the account information given to you by your institution, you can trade. This program, which was developed and released by MetaQuotes company, headquartered in Southern Cyprus in 2005, is the most widely used and known program today. MT4 also comes up with its user-satisfying graphics and drawing features.

What is MetaTrader 5? What are its features?

MetaTrader5 is another platform produced by MetaQuates, the developer of Metatrader 4, in 2010. You can do the same things you can do on MT4 on the platform. In addition, the deficiencies have been corrected compared to the previous version and some new features have been added. With the innovations, we can say that MT5 has a more advanced structure than MT4. As a result, especially forex companies have become associated with MT5. Those who use MetaTrader 5 also say that they are very satisfied. I’m sure you’re asking why I should use MT5 instead of MT4, so let’s examine the differences between them to answer this question.

What are the Differences Between MetaTrader 4 and MetaTrader 5?

Let’s take a look at the differences between MetaTrader 4 and MetaTrader 5. First of all, let’s say that MetaTrader 5 was made to eliminate the deficiencies in MetaTrader 4 and add new features. If we talk about the changes that someone who uses MT4 can see at first glance to MT5; changes in the interface will attract your attention. An example of this is that the menus are open and large.

Another difference is the difference in program coding language. MetaTrader 4 is written in MQL4 language while MetaTrader 5 is developed in the MQL5 scripting language. In MT5, which was developed with MQL5, innovations were made in order to comply with the buy/sell transactions and the system of trading robots compared to the previous program.

You can easily and quickly switch between different accounts you have opened in MT5. Also, MT5 is better and faster in back trading strategies tests. At the same time, MT5 also allows multiple parity tests. This feature helps you to save time.

Another important difference of MT5 is that it finds a solution to the hedging ban in the USA. In the F.I.F.O system applied in the USA, there is a “first opened transaction first closed” rule. If we give an example of hedging; Let’s assume that we open a 1 lot trade in GBP/USD parity. If he wants to add an additional position to this trade, the trade that was opened in the first place must be closed when closing the trade. The difference of MetaTrader 5 here is that it brings together the opened positions. However, MetaTrader 4 was recording the transactions separately.

MetaTrader 4 is one of the best trading platforms on the market, but MetaTrader 5 is more advanced in some aspects. MetaTrader 5 was developed to do what MetaTrader 4 couldn’t and to meet the market requirements of the USA. After the differences mentioned above, which one to use depends on your preferences. 

For broker candidates who want to establish a white label forex company, it is now easier to reach turnkey solutions including mt4 or mt5 platforms. For example, Qinox Tech, which provides a variety of premium technology and advisory services for forex/crypto companies, has been providing these platforms to various white-label forex brokers for years. It is seen that most of the broker companies that Qinox Tech established from scratch to fill the forex broker gap in Africa and Asia are mostly preferring these two platforms.