For those who are unfamiliar with, or new to, the world of forex trading, MetaTrader 4 and MetaTrader 5 are little more than a collection of letters separated by a single numerical digit. They mean nothing in real terms. Yet to those in the know, MetaTrader 4 and MetaTrader 5 are the technologies underpinning the entire foreign exchange market, and the subject of lengthy controversy.
So what is the difference between these two software behemoths? Interestingly, and perhaps obviously considering their names, MetaTrader 5 was initially envisaged as the successor of MetaTrader 4, yet in an unforeseen twist the two in fact became competitors. Now, they vie for domination of the foreign exchange market, thanks to a number of disparities that continue to set them apart.
What is MetaTrader?
MetaTrader is the world’s premier trading platform, originally developed by a Russian software specialist company for use by individual traders. It has had two incarnations to date: MetaTrader 4 and MetaTrader 5. Specifically engineered for use by currency traders, it allows those that ply the markets to speculate on the fluctuations and price movements of a variety of international currencies.
What are the Differences between MetaTrader 4 and MetaTrader 5?
Today, most brokers, such as OANDA, are inclined to offer both platforms to their customers, yet this doesn’t mean that the two are equal. Indeed, the most interesting aspect of the MetaTrader debate is the differences between the two incarnations, which have prompted many traders to claim a preference for the original over its ‘improved’ successor.
As intended, it is widely accepted that MetaTrader 5 is easier to navigate than its predecessor, due to its larger, more spaced out format. However, this increased simplicity comes at a price, which is widely claimed to be its smaller charting area, and the imprecision and unreliability of its Fibonacci retracement tools.
It is not only in its supposed improvements that it fails to deliver. Another key denunciation of the updated software is the absence of features found in the original: specifically, the ability to hedge and multi-hedge.
With added criticism relating to its increased storage demands, it is hard to understand how a supposed improvement could fail to deliver to such a degree, yet the MetaTrader 5 isn’t all bad. Despite its failings, it does provide users with significantly more advanced graphs and analytical tools, as well as an increased range of timeframes, new investment instruments, and more trade methodologies.
However, with MetaTrader 4 continuing to maintain its dominance, it seems that this is one technological improvement that really ought to have been forsaken. If you’re a forex trader, which platform do you prefer?