In the retail foreign exchange business, everyone believes that this field is dominated by only two front-end trading platforms from one company – MetaQuotes’ MT4 and MT5. Fortex pioneered the MT Bridge industry 15 years ago and has since built a large installation base with hundreds of FX brokerages. We frequently get asked by clients to evaluate whether MT4 or MT5 is more suitable for them.
Without any doubt, MT4 which launched in 2005 has proven itself well against the test of time. It has an unrivalled reputation and has all the features traders need. Such as numerous charting software, over 1,700 trading robots, over 2 thousand kinds of technical indicators in the MT4 market, copy trading, alerts, financial news and mobile trading.
In 2010, MetaQuotes launched MT5. MT5 is a diversified financial trading platform that allows the use of an account to trade multiple assets and supports assets such as foreign exchange, CFDs, futures, options, stocks, and bonds. MetaQuotes’ ambition for MT5 is to position it as “the best trading platform in foreign exchange and financial markets“. But it had lived in the shadow of the massive success of MT4 for quite some time until recent years. From our vantage point, there are even days MT5 trading volume actually exceeded MT4’s. MT5 has become a force to be reckoned with finally.
The debate over the two platforms has never stopped; MT4 and MT5 each have a group of loyal supporters. So, what causes customers to split up into two teams? We can take a look at the differences between the two platforms and the advantages of each.
MT4 and MT5 trading platform comparison
Advantages of MT4 compared to MT5:
- The positioning of MT4 trading product is relatively precise, focusing on financial investment trading varieties such as foreign exchange, gold and silver.
- MT4’s same side / opposite side of trading will be processed as separate tickets, while MT5’s same side orders will be merged into the one position with weighted average price, and positions with opposite sides (buy and sell hedging) are not allowed. MT4 is more convenient.
- The stability of MT4 is relatively good. It is easier to use and manage.
While MT5 offers brokers more advantages:
- Supports symbol groups
- Supports gateway
- Supports managing reports through the interface
- Runs multiple servers separately
- Settings are more refined
- Permission management is simplified
- Support for trading of exchange symbols
- Supports managing routing through the interface
- The decimal number of trading volume has been changed from 2 to 8 digits
And in order to accelerate the use of MT5 in the foreign exchange market, MetaQuotes continued to add traders’ favored features such as locked position, hedging, DOM (Depth of Market), allowing one-click market order and pending orders.
Which platform is better, is MT5 the future?
When it comes to usage, if you have to comply with US regulatory requirements, or need to do a lot of back-testing offline, or want to trade stocks and commodities, MT5 is a better choice over MT4. MT5 is also more popular with the new up and coming brokerages that try to bring new innovations to the market.
Other than that, the MT4 platform is currently more popular with established brokerage brands due to its very high usage rate. Some of the limitation in the MT4 platform is tolerable. It runs smoothly and traders are already familiar with various functions, charts and expert advisors.
Most experienced traders say they just want the platform to be reliable, easy to use, intuitive and uninterrupted. And that is what trading platforms should focus on. At Fortex, we see strong order flow from both MT4 and MT5. Our strategy is to build the best of breed, highly customizable, bridges to both MT4 and MT5, enabling our clients’ current success as well as ensuring their future.
Stay tuned on our next blog to discuss the software architecture of MT4 vs. MT5 and its implications to constructing the proper trading infrastructure and ecosystem.
Bridge OMX – build a bridge to your MetaTrader users
With Fortex’ MT4/MT5 Bridge OMX, you can give MetaTrader (MT4/MT5) users direct access to global Tier 1 liquidity and advanced trading capabilities.
Fortex Bridge OMX gives MetaTrader (MT4/MT5) users direct access to vast Tier 1 liquidity from all major money center banks and venues for more than 80 global currency pairs as well as metal, energy and CFD products. You can gain instant, low-cost Straight-Through Processing (STP) of your orders at razor-thin spreads.
Fortex Bridge OMX transforms FX trading for MetaTrader (MT4/MT5) users while preserving your system investment. Bridge OMX transformed FX trading for tens of thousands of MetaTrader users and was the driving force behind the success of MT4/MT5 powerhouses such as Interbank FX, Forex Liquidity LLC, Pepperstone, and Advanced Markets. We process up to $12 billion and more than 500,000 tickets daily, helping our clients achieve nine-figure annual revenues.
Anthony Brocco, Founder and Executive Chairman of Advanced Markets, said: “The Fortex ECN platform and MT4/MT5 Bridge OMX have enabled our trades to be processed faster, cleaner, and in sizes and numbers that far exceed any other platform I have used’.
Founded in 1997, Fortex continues to revolutionize trading with its powerful, neutral, multi-asset trading platform focused on the FX markets. Fortex’s FX suite, ECN, infrastructure hosting and more are used by regional banks, hedge funds, asset managers, broker dealers and professional traders around the world to enhance liquidity access, improve execution workflows, and support sophisticated trading strategies.
Fortex maintains its technology leadership through continuous innovation, bringing together the latest processing, intelligent routing, and execution technologies with a robust, always-on platform. As hosted solutions, Fortex platforms are customized to customers’ specific trading environments and deployed quickly. The company’s unwavering commitment to customer service helps Fortex customers build and sustain their competitive trading advantages in changing markets.
More information about Fortex can be found at https://www.fortex.com.