Many traders who are new to Forex trading programs have often heard about MetaTrader software but don’t quite know what it is. MetaTrader is a trading program that allows you to trade currencies in the Forex market quickly and simultaneously. But what is the difference between MetaTrader 4 & MetaTrader 5?
Brokers and Traders
The major difference between MetaTrader 5 and MetaTrader 4 comes in the type of terminal used to operate the software. MetaTrader has always been known as a web-based platform, and brokers and traders have always used this platform to give them access to the global market through their computers. But as years have passed, more traders have become aware that they can now trade currencies using a mobile terminal. These terminals come packed with all sorts of features, and they are designed to be extremely easy to use. They are also very convenient for frequent traders as they are often easy to set up and connect to.
As stated above, MetaTrader has always been known as a web-based platform, but with the latest release of its latest version(4), it is now available in both Windows and Mac operating systems. With MetaTrader’s new release, even those on the go can still access the market; all they need is a computer with an internet connection. What is the difference then between a MetaTrader platform and a mobile terminal? For one thing, the mobile platform is easier to use as it has fewer restrictions on what you can do with it, unlike a MetaTrader platform which has its limits as to what you can do and what you cannot do with it.
The only reason why there is some confusion regarding MetaTrader being a web-based platform and a mobile phone-based platform is perhaps that the Forex community used to differentiate their web-based trading platforms from mobile phone trading platforms. However, after the introduction of MetaTrader 4, this was no longer the case. Many currency brokers have already started developing mobile interfaces for their clients. So the issue becomes one of convenience rather than of convenience itself.
MetaTrader and Forex Trading
Perhaps, one of the most significant differences between MetaTrader and Forex Trading Platforms is the level of customization that the latter offers its users. Unlike MetaTrader, Forex Trading Platforms offers complete trader control over the trading platform, from creating strategies to executing those strategies. This is perhaps one of the most important differences that separate these two platforms. MetaTrader does not have much control over his trading platform; the trading platform is primarily left up to the software that handles the trading transactions. Therefore, traders are left with very little room for customization. When it comes to MetaTrader, they have almost limitless options. On the other hand, with Forex Trading Platforms, only the platform’s software is hosted by allowing them any modicum of freedom.
Perhaps another critical difference between MetaTrader and Forex Trading Platforms is that MetaTrader is a platform that is offered to be used by more investors and brokers themselves. Once the investor has made his purchase, he is under no obligation to continue using the platform unless he wants to. Unlike Forex Trading Platforms, MetaTrader does not require developers to make technical analysis training modules or indicators for the investor. Thus, the freedom of decision is greatly increased with MetaTrader, since the platform is essentially being sold to the buyer as is, without any need for customization.
Technical Analysis Tools
MetaTrader also differs from most other platforms by being primarily an online-based product. Unlike many Forex Trading Platforms, MetaTrader is the first of its kind to provide an interactive desktop experience to its clients. The desktop interface is essentially a MetaTrader 4-like, with additional features and capabilities, such as real-time charts and graphs. This change is mainly because MetaTrader still needs to implement a significant upgrade to keep up with the latest changes in the platform’s technical analysis tools, such as the MetaTrader 4 engine.
Overall, MetaTrader is probably the best-known and most widely used Meta Currency Trading Platform. However, due to recent technological advancements, MetaTrader 5 has been gaining in popularity in the market. MetaTrader 5 features a lot more charting and graphing functionality, as well as various automated trading systems. However, it is essential to note that MetaTrader 5 requires a fee to download and use, and some of the advanced trading and prediction systems may require an extra monthly charge. Compared to MetaTrader 4, MetaTrader 5 has not had a massive reception by traders, despite the upgrade to its technical analysis tools. Still, nevertheless, it has gained enough popularity to stay in the industry for a long time.