For anyone who has just started out in forex trading, it may appear that all platforms are roughly the same, however, this is definitely not the case. The MetaTrader forex trading platform is one of the most commonly found, having been developed by the MetaQuotes Software Corp, a specialist Russian company that develops financial market software. The MetaTrader platform was created to allow traders to profit from the movements in the price of major global currencies. Used by all kinds of investors, from beginners to experienced traders, the MetaTrader platform has been developed using its own programming language which enables traders to create their own custom-made signal indicators and expert advisors.
The MetaTrader 5 platform has been designed to take over from the older and more outdated MetaTrader 4, however as yet it has failed to take over in popularity. Although both platforms have been created to carry out the same task, there are substantial differences between the two, with each offering different features that have their own pros and cons for both brokers and forex traders. It appears, however, that the majority of forex traders, and especially those who are newcomers to investment, find the MT5 platform a disappointment and prefer to use the older MT4 interface. It seems that, despite its newness, the MT5 platform is lacking the capacities that traders require in their user interface and therefore the older platform continues to be the most widely used.
What are the Features of the MetaTrader 5 Platform?
The MetaTrader 5 platform has updated the flexibility and ease of use of the previous MetaTrader 4 platform while offering some new features.
Traders with more than one account will find them easier to manage with MT5 as there is now an accounts window found in the Navigator to allow switching between accounts more rapidly, especially when responding to sudden events in the market. In the main window of the interface, it is also possible to display several forex price action graphs, or alternatively to focus on one large panel in order to trade a specific pair easily.
Several new indicators have been added to the technical analysis repertoire, with the indicators being divided into 4 groups – Oscillators, Trend, Volumes and Bill Williams categories. There is also another category available for custom indicators. This makes access to analytical tools more rapid and more simple. There are several new trend indicators including Double and Triple Exponential Moving Averages, Fractal Adaptive MA, Adaptive MA and Variable Index Dynamic Average. There are also new additions to oscillators including Triple Exponential Average, and the new Bill Williams category has a new Market Facilitation Index.
MT5 also offers an advanced trading script for auto-trading as well as a powerful expert advisor, which enables a pre-made chart-in-chart style for improved in-depth analysis of strategy. While most of the features of the MetaTrader 4 platform remain intact, the new platform has placed them all on an improved context and given them an outlay that is more orderly and easier to access in order to improve the efficiency of use.
Top Reasons Why Traders Don’t Like MT5
There are a number of clear differences between the MetaTrader 4 and MetaTrader 5 platforms. Although the majority of users say that the new MetaTrader 5 platform is actually more simple to navigate thanks to it’s spaced out, larger buttons, there are a number of changes which have been made that are not advantageous to the user. One of the differences that users dislike is the size of the charting area, which is considerably smaller in the new MT5 platform, and there are also issues with the Fibonacci retracement tools, which do not work as precisely as those on the MT4 platform. This is a clear problem for serious traders who use these tools regularly to inform their executed trades.
Another disadvantage of choosing the MT5 platform, as explained by online learning portal investoo.com, is that hedging and multi hedging are not permitted. Many traders are looking for this as a key feature when selecting a trading platform and this makes MT5 much less appealing than MT4. Although it is possible to use plugins to facilitate hedging with the MT5 platform, this is inconvenient and off-putting.
One further problem with MetaTrader 5 is that it requires a lot more computer space than the MT4 platform, and requires more than three times as much RAM as its earlier predecessor. This means that the downloading and installation process takes a lot longer than when installing MT4, especially for those with older computer systems. Considering that many top Forex brokers are servicing traders in the developing countries, it can certainly be a show stopper. There is also no possibility of conversion between MT4 and MT5 as the new MT5 code has not been designed to be backwards compatible and this means that the indicators and expert advisors of the MT4 platform will not work with the newer MT5 platform.