Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
Comparison of MetaTrader 4 and MetaTrader 5
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular multi-currency trading platforms from MetaQuotes Ltd, a leading developer of software for brokers, banks, and exchanges.
With the help of these platforms, brokerage companies can successfully serve traders in the Forex, stock exchange, and futures markets.
Most brokers use MT4 and MT5, providing their clients with 24/7 access to financial transactions via desktop versions, smartphones, and tablets (mobile versions on iOS and Android).
In this article we let’s consider and let’s compare these trade platforms and process their implementation in business.
MT4 and MT5 have many tools for technical and fundamental analysis, the creation of their own indicators and automatic trading bots, interactive charts with various timeframes, technical indicators and analytical instruments, sound indicators, and current news from financial markets.
It should be noted that MT5, as a newer and more progressive platform, has more timeframes and built-in indicators, an economic calendar of major financial events and a news feed, an advanced programming language – MQL5 for creating your own indicators, trading strategies, and algorithmic systems.
MT4 and MT5 have the following order execution modes: “instant”, “on demand” and “market”.
MT5 has an exchange execution mode and all types of orders, including market, pending, and stop orders and trailing stops.
MT4 allows only hedging, in MT5 hedging is added offsets (netting).
MT4 is used for Forex and Contracts for Difference (CFD) trading, while MT5 is used for trading stocks, futures, and currencies, covering both centralized and decentralized financial markets.
MT4 is a 32-bit single-threaded platform, MT5 is a 64-bit multi-threaded platform. That is, MT5 allows you to execute orders and/or test trading strategies faster and more efficiently.
Thanks to virtual hosting, MetaTrader 5 can work even when the computer is turned off (forex VPS), ensuring round-the-clock execution of trade robots and subscriptions to signals with minimal network delays.
In addition, MT5 supports WhiteLabel licenses and has developed back-end functionality, gateways for connecting to exchanges, liquidity providers, and many APIs for integration with your website and trading systems.
Thus, MT4 is more suitable for decentralized, open, and unregulated on a global scale Forex market, to provide services to private traders, while MT5 gives the opportunity to trade in both currency and stock markets, and has a more developed and improved functionality that attracts institutional customers
In order to start working on the MT4 or MT5 platform, you need to sign up for a brokerage company Licensing agreement with MetaQuotes Ltd, in which are noted conditions using platforms.
The next stage is technical integration platforms in the infrastructure broker, which includes settings:
- servers;
- systems protection data;
- trading conditions and creation of client’s bills;
- CRM systems for working with customers;
- risk management systems and integration with the KYC system.
The following step – choice the hosting provider for installation servers MetaTrader.
Also, you need to decide on the list of financial instruments that you plan to provide (currency pairs, commodities, indices, shares, futures, options, bonds, etc. ), and choose providers of liquidity and payment services.
MetaTrader 5 provides gateways to connect to liquidity providers: broker-dealers, exchanges, FCMs, ECNs, banks, and non-bank financial institutions.
Summarizing the above and taking into account the popularity of these platforms among professional participants of financial markets and private traders, we can say that both MT4 and MT5 are modern, multifunctional, reliable, and safe systems that have proven themselves on the market.
Which platform to choose for your professional activity depends on your capabilities, business strategies, and the list of services you plan to provide to market participants.
The lawyers of the company “Prikhodko and Partners” are ready to advise you on the license terms and nuances of connecting to MetaTrader platforms, as well as provide qualified support at all stages of integrating the platform into your business.
As an alternative option, we offer to consider the purchase of a ready-made brokerage business registered by the company with necessary licenses, permits, integrated into business trading platforms, management and control systems, KYC/AML systems, configured gateways with providers of liquidity and payment services and other “goods” of the operating company.
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