An Overview of MT4 and MT5

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both massively popular trading platforms developed by the MetaQuotes software corporation. Both platforms are widely used by traders worldwide for online trading in the Forex, CFD, and futures markets.

MT4 was first released in 2005 and is the most popular retail trading platform in existence by a wide margin. Forex traders and traders of other financial markets widely use it. It offers various tools and features, including advanced charting capabilities, multiple order types, and automated trading strategies (Expert Advisors or EAs). MT4 is also highly customizable, allowing traders to create their own indicators and scripts.

MT5, on the other hand, was released in 2010 as an improved version of MT4 built from scratch. Due to differences in the underlying architecture MT4 could not be upgraded to MT5, which has lead to the platforms being offered in parallel and somewhat competing with each other. MT5 offers many of the same features as MT4 but with additional capabilities such as extra indicators, netting accounts, depth of market (if the price feed supports it) and improved reporting functionality. MT5 also allows brokers to add thousands of tradable products so in addition to Forex and CFDs it is also suited to offering stocks and futures instruments.

MT5 is also much more flexible for brokers from a configuration perspective allowing more groups, symbols as well as more fine grained control over configuration of commissions, markup and swaps. MT5 is also a 64 bit application while MT4 still runs on 32 bit code resulting in MT4 being a comparatively heavier application to run on modern 64 bit operating systems.

One of the key drivers to the success MetaQuotes has achieved is because both versions of Metatrader have been developed as trading frameworks that ship with the MetaEditor IDE (integrated development environment) allowing coders to develop and compile trading algorithms and indicators. The framework is based on the proprietary MQL4/5 programming languages, which is easy for anyone with C++ experience to work with and is one of the easiest algorithmic trading languages to code.

In addition, MetaQuotes provide the MQL marketplace where coders can sell trading algorithms and indicators they have developed. In addition they can also sell their programming services by the hour and the marketplace is packed with extensive documentation and an active forum of developers.

In addition to coders developing indicators and trading algorithms for Metatrader, the platform also lends itself well for third party server plugins to be used such as those that provide dynamic margin and money management capabilities. Meaning third parties can extend the capability of the platform in various ways. There is also the Manager API, which permits third party applications to integrate and perform functions such as creating trading accounts and perform deposits/withdrawals via API which is a fundamental requirement when integrating the platform with a brokers website.

The MQL marketplace also offers a signal service, which allow successful traders to publish signals that other traders can automatically follow for a fee using an account with any Metatrader broker that has MQL signals enabled. In addition to this there are a number of similar third party signal and trade copying solutions out there developed exclusively around MT4 and MT5. All of these services have cemented Metaraders position in the market as the leading retail trading platform, with no other notable services for competing trading platforms.

As a mature and widely used product, off the shelf bridges and integrations exist that allow connectivity with just about every major liquidity platform and price feed available. In addition, the Metaquotes Gateway allows any Metatrader server to use another Metatrader account for pricing and liquidity. So the Metatrader eco-system feeds itself at both the broker and trader level.

MT4 and MT5 are extremely popular with brokers worldwide and are available for download on Windows and Mac computers and mobile devices while also being available as a pure web-based product. They also offer a wide range of free and paid indicators and EAs to enhance the trading experience.

Regarding the user interface, both platforms have a similar layout and are easy to navigate. However, MT5 has a slightly more modern and sophisticated look than MT4. In addition, both platforms offer a wide range of customization options, allowing traders to personalize their trading experience to fit their individual needs.

MT4 and MT5 are excellent trading platforms that offer a wide range of tools and features to enhance the trading experience. MT4 is mostly prevalent among Forex traders, and while MT5 is also popular among Forex traders it has also gained traction with stocks and futures markets. Ultimately, the choice between the two platforms will depend on the trader’s specific needs and preferences, and the availability at the chosen broker.

Concerning deployment the trading platform has been designed to run on self-hosted Windows servers. Typically a main server should be installed in one datacenter and a backup server in another to provider redundancy. A good option for the main server can be to use dedicated servers within Equinix LD4, NY4 or TY3 datacenters, which provide colocation to the largest liquidity providers and price feeds that also run in the same datacenters.

Hosting with major cloud service providers such as Azure or AWS can also be a good option as certain locations can provide sub-millisecond connections to the above-mentioned Equinix datacenters. Cross connected Access Points can also be setup in various locations around the world providing stable localized connections to users irrespective of the distance between the user and main server location. Since the stability of the trading server is paramount and glitches can be expensive and cause reputational damage it is advisable to ensure the hosting infrastructure is setup in the best possible way and supported by an experienced team.

Trade server requirement for the two platforms are as follows:

MetaTrader 4

MetaTrader 5

Duplicate dedicated servers are recommended. One to act as the main server and the second to act as a mirrored backup. Installing these two servers in separate data centers is also highly recommended.