If you’re in the Forex business, you’ve heard of MetaTrader. MetaTrader, or MT as it’s colloquially known, is a multi-platform, institutional trading platform for Forex. It offers an array of exceptional technical analysis tools and amazing trading possibilities in addition to using copy trading and automated trading systems. MetaTrader5, also known as MT5, is the latest iteration of this powerful trading platform.
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MT5 was first released in 2010, just four years after its predecessor, MT4. You would think that a later version of something meant it was a new and improved version of its older cousin, right? In the case of MT5, this isn’t precisely true. MT5 can do some things that MT4 can’t, and therefore, is geared toward a different market entirely.
Unlike MT4, MT5 is designed to trade in markets besides Forex, like commodities and stocks, for example. This feature is because it can “plug into” a centralized trading exchange much more quickly. Because Forex is a wholly decentralized market, many big trading names provide liquidity into this market at varying prices and almost all in a haphazard fashion.
Stocks and commodities are both usually traded throughout a relatively centralized process before the legality of the new ownership goes into effect. The timing of MT5’s release could not have been more serendipitous, as shortly afterward, a retail commodities and stocks boom exploded. Some speculate that MT5’s engineers foresaw this boom, and therefore designed the platform to accommodate the stocks and commodities market’s impending needs.
Another significant difference comes down to the platforms’ hedging ability. You can hedge on MT4, whereas on MT5, you cannot. Most U.S. traders won’t find any problem with them, to begin with, as hedging is unilaterally banned in the United States. However, non-U.S. traders may become very frustrated at the inability to hedge, as is perhaps one of the biggest reasons why these non-American traders feel pushed into using MT5.
You can get MT5 in desktop and mobile versions and have access to a virtual hosting service and an online database of strategy developers. Like MT4, the interface is daily easy to navigate if you’re an advanced trader or day trader. Furthermore, it simultaneously allows 21 timeframes and eight kinds of pending orders and a wide swath of classes.
MT5 is armed with the right tools to help you zero in on the best trading opportunities while keeping track of them. The software itself is quite powerful and reliable, so you’ll handle accounts with multiple brokers with ease. If you’re looking for a state-of-the-art trading platform that can help you up to your Forex game and beyond, look no further than MT5.
Mostly, MT5 was developed in hopes of attracting non-Forex markets and other American markets to expand on the trading capabilities of MT4.
We hope we’ve learned a little something about the essential differences between MT4 and MT5. Now you can make a better choice of which trading platform is right for you to use. Thanks for reading and happy trading!