Forex Trading Platforms

MT4 Vs. MT5 – Which One Should I Use?

Forex traders can choose the trading platform they want to use. However, this choice is interrelated with the choice of the Forex Broker, as not all types of trading platforms are offered by all brokers. In addition, some brokers do not have real compatibility with certain Forex trading platforms, but giving access to them via a bridge, which is a way a software connects a Forex broker trading system to the platform. This may work satisfactorily, but if the bridge is malfunctioning or slow it may adversely affect the implementation and management of trades.

The trading platform MetaTrader 4 is well known and can definitely be said to set the industry standard. I have never seen a Forex broker who does not offer to trade directly through the platform or through an internal bridge to the platform, although this may be at the cost of a slightly higher spread and/or commissions. The MT5 trading platform is something less common, although it is produced by the same

Essentially, MT5 was designed to be able to operate in markets other than Forex, such as the stock or commodity market, basically because it is more able to connect to a centralized trading exchange. Forex is a completely decentralized market, with a number of major players providing liquidity to this huge market at slightly different prices, uncoordinated. Shares and commodities, the latter is traded largely as a futures contract (in fact, several contracts with different maturity dates), it should usually be negotiated through a centralized process before the property can change hands with full legal effect. At the time of the development and publication of MT5, it can be assumed that Metaquotes foresaw a boom in trading in equities and retail commodities, and designed the software to suit that market.

The other important factor of the differential design was the compliance with the “no cover rule” of the U.S., which states that clients of Forex brokers in the U.S. must negotiate on a F.I.F.O. (first-in, first-out) basis. This means that if, for example, an operator is going to buy 1 batch of EUR/USD, and then buys an additional batch of EUR/USD, the first transaction must be closed before the second can be closed. While Metatrader 4 records each transaction individually and allows the management of each individual position separately, Metatrader 5 automatically adds all positions. Therefore, only the Metatrader 4 can deal with coverage: Metatrader 5 does not.

This is fine for operators in the U.S., as they are legally prohibited from coverage in any case, but in almost all the world, many operators find the difficulty of not being able to carry out coverage operations a very annoying and unnecessary handicap. It is probably the main reason why many traders have become annoyed by being “pushed” to use Metatrader 5 instead of Metatrader 4 by their brokers and possibly by Metaquotes as well. So, to sum up, MT5 was developed to attract US markets. and to meet the needs of this market better than MT4 could. This is the story of MT4 vs. MT5.

What are the differences between MT4 and MT5 Forex platforms? The two main differences have already been covered, but there are others worth mentioning within any comparison between MT4 and MT5.

MT5 uses a programming type called MQL5 compared to the MQL4 used by MT4. The best thing about MQL5 is that it allows programming “black box” which, in a nutshell, means it is easier to program and therefore, logically will be a better framework for users and developers of trade robots and other expert advisors. However, Metaquotes expanded this capability in MQL4 in 2014, so it is no longer a difference between platforms, although there is a likelihood that if the language is updated at some point in the future, Metaquotes will not extend any updates in MQL4 as well as MQL5

It should be noted that there is no retroactive compatibility. Programs written for Metatrader 4 cannot run on Metatrader 5. This can be a serious inconvenience for traders who wish to “upgrade”, and is a key reason why such a change should not be seen as an update.

It is true that the Metatrader 5 retains two key advantages related to programming over the Metatrader 4. First, its backtesting functions, where you can test the scheduled trading strategies, run at a much faster rate, which is a feature that can save you a lot of time if you are the type of trader that needs to run a large number of backtests. It also allows for the simultaneous testing of multicurrency peer retrospectives. Overall, this can speed up back-testing procedures immeasurably.

Forex Trading Platforms

Overview of the Best Forex Trading Platforms

Are you wondering which forex trading platforms are the best? There are several options out there and many brokers might offer you different choices. It’s important to choose a broker that offers a good trading platform if you want to achieve the best results. This is why we’ve ranked the best trading platforms below, based on features and popularity, along with disadvantages.

MetaTrader 4 (MT4)

MT4 is no doubt the most popular and widely available trading platform on the market, despite the release of its successor MT5. If you’re considering a popular forex broker, then MT4 is likely to be their featured trading platform and can be accessed for free with any trading account. This platform was specifically designed for FX trading and comes with several noteworthy features:

  • One-click trading
  • 9 different timeframes
  • User-friendly and easy navigation
  • 3 order execution types
  • 30 technical indicators
  • Supports roll-over and hedging
  • 4 pending order types
  • Accessible on PC, web-browser, and mobile apps

These are only a handful of features found within the popular trading platform. In addition to being widely accessible, MT4 is probably the most stable platform available. Many traders prefer its interface over every other platform out there. However, there are few known disadvantages to using this platform, especially when in comparison to its successor MT5. Here are some of MT4’s disadvantages:

  • Some experts claim that MT4 is slower than other top trading platforms
  • MT4 offers fewer order execution types and pending order types than MT5
  • No depth of market
  • No economic calendar
  • Less detailed market watch
  • Single-threaded strategy tester
  • Netting isn’t supported

MetaTrader 5 (MT5)

MT5 is the newest version of MT4 and is also widely available, although it isn’t offered as commonly as its predecessor. This platform offers some advantages over the older version, but many traders still prefer the timeless classic. The debate between MT4 and MT5 really comes down to personal preference. Here are some of MT5’s advantages:

  • One-click trading
  • 21 timeframes (versus 9 on MT4)
  • User-friendly and easy navigation
  • 4 order execution types
  • 38 technical indicators (versus 30 on MT4)
  • Supports roll-over and hedging
  • 6 pending order types (versus 4 on MT4)
  • Available on PC, web-browser, and mobile apps
  • Ability to switch between hedging mode and netting mode
  • Built-in economic calendar
  • Multi-threaded strategy tester (versus single-threaded on MT4)
  • Ability to transfer money between accounts

As you can see, there are several clear advantages to trading on the MT5 platform. Of course, MT4 users can still access some of its features even without having them available on their platform. For example, economic calendars are widely available online.


If you prefer not to use MetaQuotes software, cTrader is another noteworthy option. This platform was created by Spotware and comes with features that are both alike and different from those on the MT4/MT5:

  • Variety of price charts
  • 70+ pre-installed indicators
  • Available on desktop, mobile devices, and browser
  • Allows traders to build robots and indicators
  • Up to 50 templates and sharing tools
  • Multiple timeframes

Where MT4 and MT5 offer various features that can enhance trading with an interface that is more navigable, cTrader focuses on allowing users to customize and create trading indicators and robots. Of course, one should determine which platform offers the most features for their needs.


The last platform on our list is NinjaTrader. This option has been around since 2004, but it isn’t as well known as the other contenders on our list. NinjaTrader was designed for forex, futures, and stock traders. Here are some of its advantages:

  • Advanced charting
  • Automated strategy development
  • Trade Simulation

The biggest disadvantage of choosing NinjaTrader is that users must purchase a lifetime license for $999, lease the platform quarterly, or use a free version with higher commissions. Platforms like MT4 and MT5 are so popular because traders can access them for free through their chosen broker. NinjaTrader finds itself last on our list because it adds another cost for forex traders to pay.