The notion of online investing can be traced back to the so-called halcyon days of the Internet when issues such as dial-up connectivity were considered to be normal. Companies including Globex and E-Trade dominated the 1990s and they offered investors the ability to become involved within a fast-paced community that few could otherwise access.
Thanks in no small part to 5G connectivity and the rise of smartphone applications, it is now possible for professionals to access the digital trading community with the click of a button. The MetaTrader franchise is perhaps the best example of just how far this technology has come in only a handful of years.
However, there are actually two MetaTrader variants to consider. Is MetaTader 4 the best option or might MetaTrader 5 offer investors a much-needed virtual edge? The only way to answer this question is to examine both systems in more detail.
MetaTrader 4: The Flagship Trading Platform
MetaTrader 4 was introduced to the public in 2005 and it quickly revolutionised the entire concept of online trading. As opposed to assuming that users boasted a great deal of technical experience, MetaTrader 4 (also referred to as the MT4 mobile bundle) was engineered to provide assistance to novices.
Furthermore, MT4 was in a class of its own in terms of important tools such as technical indicators. When combined with other benefits including the ability to create four different types of pending orders and lightning-fast updates in real time, it is no wonder why this system soon became the benchmark of the online trading industry.
Not Without its Drawbacks
To be fair, MetaTrader 4 still had some issues that emerged over time. This was not the fault of the programmers whatsoever. It instead involved other factors such as limited smartphone memory capacity and slow wireless connectivity speeds. In other words, certain tools and utilities needed to be curtailed in order to ensure overall functionality. Here are some areas that can now be seen as slightly cumbersome:
- MetaTrader 4 offered a limited number of asset classes.
- Advanced trading options such as conditional orders were not available.
- MT4 was not equipped with any type of real-time news feed.
It is once again crucial to stress that these were far from commonplace at the time and MT4 was still far ahead of the competition. While improvements were indeed made occasionally, engineers eventually agreed that a major update was in order. This ushered in the advent of MetaTrader 5.
What Does MetaTrader 5 Have to Offer?
MetaTrader 5 was officially launched in 2010 alongside the vaunted MT5 mobile application. It has enjoyed steady popularity ever since. The good news is that its designers did not try to reinvent the proverbial wheel. They instead built upon many of the trusted principles associated with the MT4 system. This led to several notable improvements.
For example, MT5 offers a total of 38 technical indicators while MT4 users are limited to 30. MetaTrader 5 likewise provides more flexible trading timeframes (21 at the time that this article was written). MT4 offers eight. An economic calendar is also a nice touch; especially for institutional traders who may be monitoring numerous different asset classes at any given time. Speaking of assets, investors can tap into more than 1,000 options while MT4 was associated with approximately 250.
A final disparity involves the presence of a real-time news feed within the MT5 application. Social trading has now become an integral part of many strategies and decisions will often be made after interpreting this sentiment. The use of an embedded service known as MQL5 community chat allows users to access the latest information when it becomes available. This is also an invaluable resource for novices.
Which is the Better Trading Platform?
A word of caution should be issued when using terms such as “better” or “best” when analysing any type of trading system. The efficacy of a platform is partially determined by the style and requirements of the investor. For instance, MT4 could still be a great option for individual traders and novices. Most feel that MT5 is better suited for multi-asset management as well as for those who primarily trade on an institutional level.
This is why it is prudent to take a look at both or to speak with an expert before coming to a final decision.
