As a trader, you have most likely heard of the MetaTrader 4 and MetaTrader 5 platforms but may not understand the difference. There are so many different platforms available for forex and other types of trading, that it is difficult to know them all. MT4 and MT5 are ultra-popular platforms that are worth getting to know and understand, as they can be very advantageous when used properly.
To understand how common MT4 is, just look at the MetaTrader 4 brokers list to get an idea of how many brokers actually use it. MT5 is a much newer trading platform than its older brother, but it is being picked up across the world very rapidly. The difference between the two platforms is fairly significant, and you can see it below.
The MT4 platform, as mentioned above, is much older than the MT5 platform, and it was successfully launched back in 2005. This platform uses a unique MQL4 language, and it is by far the most popular platform used on the market. The greater majority of forex brokers across the world utilize this technology.
MetaTrader 4 was created solely for use in forex and CFD trading, and it has quickly become the industry standard for these markets. Brokers will give you access either directly to this platform, or use a bridge to gain access for you. The user-experience is top of the line, and if everyone else is using it, there must be a reason for it.
The newer of the trading platform siblings, MetaTrader 5 was released five years later in 2010. There are some major improvements over the MT4 system, namely the additional time frames, depth of market data, economic calendar, and language compatibility with its older brother. The unique MQL5 language can be used with the MT4 platform, but not vice versa.
This platform is made not just for forex and CFD trading but can be used for all kinds of different markets including commodities, futures, and stock. It was designed and aimed to be used by a different segment of traders, not to be in competition with the MT4 platform. If you look at the top 100 regulated brokers in the world, a lot of them are going to offer both platforms or only MT4.
Which One is Right For You?
To answer this question you really need to know what type of trading you want to be involved in. MetaTrader 4 has been commonplace in forex and CFD trading for 15 years now, and it really is the go-to platform for this type of trading. There would be no reason to switch to the newer platform if the older one offers everything you need.
Now, if you are looking to diversify and invest in different markets, then MetaTrader 5 is going to give you an all-around great experience. Due to the upgrades from the previous iteration, and its inclusion in so many different markets, this is a great platform for those who trade all over the place. Essentially the choice is up to you, and depending on what you plan on doing, both can serve you perfectly.