The Future of MetaTrader 4 After the Arrival of MT5!

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Hello, smart traders! As a researcher and financial analyst at fxbonus.insureroom.com, I know you're always looking for accurate and reliable information to make better trading decisions. Today, we'll discuss a topic often debated within the trading community: what is the future of MetaTrader 4 (MT4) after the arrival of MetaTrader 5 (MT5)?

MetaTrader 4 has been the gold standard forex trading platform for years. Its intuitive interface, stability, and massive ecosystem of custom indicators and Expert Advisors (EAs) have made it the top choice for millions of traders worldwide. However, with the release of MetaTrader 5, claimed to be a more advanced successor, a big question arises: Will MetaTrader 4 soon become obsolete? Or will it continue to survive and remain relevant? Let's dive deeper with a careful and straightforward analysis of MT4's current market position.

A Brief History and the Undeniable Dominance of MetaTrader 4

Since its launch in 2005, MetaTrader 4, or MT4 as we affectionately call it, quickly won the hearts of retail forex traders. Why? Because the MetaTrader 4 trading platform offered a revolutionary combination for its time:

• User-Friendly Interface: Even for beginners, MT4 is relatively easy to learn and use. You can quickly understand how to open positions, set stop losses, and take profits.
• Stability and Reliability: The MetaTrader 4 platform is known for its stable performance, crucial for fast and accurate order execution, especially in volatile markets.
• Rich MQL4 Ecosystem: The MQL4 programming language enabled the development of countless custom technical indicators and Expert Advisors (EAs). This was a game-changer, allowing traders to automate their strategies and perform customized in-depth analysis.
• Extensive Community Support: Due to its popularity, there is a huge global MT4 community. You can find many tutorials, discussion forums, and other helpful resources.

Thanks to all these advantages, MetaTrader 4 became more than just a platform; it evolved into a complete ecosystem supporting the trading journeys of many individuals.

MetaTrader 5: An Evolution or a Revolution?

In 2010, MetaQuotes Software Corp. (the developer of both MT4 and MT5) launched MetaTrader 5 (MT5). Its main goal was to be a more modern and sophisticated multi-asset trading platform, surpassing MetaTrader 4, which was initially designed specifically for forex. MT5 brought many significant improvements:

• Multi-Asset Support: Not just forex, MT5 is designed for trading stocks, commodities, futures, and other CFDs from a single platform. This means you can access more markets without switching platforms.
• More Indicators and Analytical Objects: MT5 offers 38 built-in technical indicators, 21 timeframes (compared to 9 in MT4), and 44 analytical objects. This gives you more tools for in-depth technical analysis.
• Depth of Market (DOM): This feature allows you to see the current liquidity at various price levels, providing a more transparent view of supply and demand.
• More Advanced MQL5 Programming Language: MQL5 is more modern, more efficient, and supports object-oriented programming. This allows for the development of more complex and faster EAs and indicators.
• Multithreaded Strategy Testing Feature: This feature enables much faster and more accurate backtesting of EAs, leveraging modern processing power.
• 64-bit Architecture: MT5 is built on a 64-bit architecture, making it more stable and capable of handling larger volumes of data compared to the 32-bit MT4.

Technically, MT5 is indeed superior in many aspects. It is a more powerful, faster, and versatile platform. So, MT5 should have quickly replaced MetaTrader 4, right? The reality turned out to be not that simple.

Why Does MetaTrader 4 Still Hold Strong?

Despite MT5 coming with many improvements, MetaTrader 4 has endured and remains very popular. There are several strong reasons why you can still see MT4 offered by many brokers:

1. Established EA and Indicator Ecosystem: This is the biggest reason. Most Expert Advisors and custom indicators developed over the years were built on MQL4. MT4 and MT5 are not directly compatible (MQL4 EAs cannot run on MT5, and vice versa). Many traders, especially those relying on specific EAs, are reluctant to switch if it means rebuilding or repurchasing all their tools.
2. Trader Comfort and Familiarity: Many traders have used MetaTrader 4 for years. They are very familiar with its interface and feel comfortable. Migrating to a new platform, even if better, always requires adaptation time and a learning process. For some, "if it ain't broke, don't fix it."
3. Broker Licensing Costs: For brokers, the MT4 license tends to be cheaper than the MT5 license. This leads many brokers, especially those targeting the pure forex market, to keep offering MetaTrader 4 to save operational costs. Additionally, many brokers feel MT4 is already sufficient for forex trading needs.
4. Interface Simplicity: Some traders actually prefer MT4's simplicity. For beginners, the MetaTrader 4 interface might feel less "overwhelming" compared to the complex features in MT5. For basic forex trading functions, MT4 is still very capable. If you are a beginner, you might want to learn how to use the MetaTrader 4 (MT4) trading platform first.

Challenges and Limitations of MetaTrader 4 in the Modern Era

Although still beloved, MetaTrader 4 is not without its limitations, especially when viewed in the context of current trading technology:

• 32-bit Architecture: This is a fundamental weakness. MT4 cannot fully utilize the capabilities of modern 64-bit processors, which can limit performance and the amount of memory it can access.
• Order Type Limitations: MetaTrader 4 only supports the "netting" order system (one position per instrument). This differs from MT5, which supports both "hedging" (multiple opposing positions on the same instrument) and netting. Although most retail traders use netting, the flexibility of hedging is preferred by some.
• Limited Multi-Asset Support: As mentioned, MT4 was primarily designed for forex. While many brokers have adapted it for other CFDs, MT5 is better integrated for trading various asset types.
• Development Priority from MetaQuotes: MetaQuotes Software Corp. clearly prioritizes the development of MT5. This means innovations, new features, and active support will be directed more towards MT5, while MetaTrader 4 will only receive essential maintenance updates. They also stopped selling new MT4 licenses to brokers in 2018.

Support Direction from MetaQuotes Software Corp.

MetaQuotes has clearly pushed the industry towards MT5. They have stopped selling new MT4 server licenses, meaning new brokers must choose MT5, and older brokers looking to expand capacity must consider MT5. However, this doesn't mean MetaTrader 4 will be shut down immediately. MetaQuotes still provides technical support and maintenance for existing MT4 servers. This is a transition strategy aimed at slowly guiding the market towards the newer platform without causing sudden disruption.

The Role of Brokers in Determining Platform Choice

Brokers are the bridge between traders and the market, and their platform choices significantly impact the trading ecosystem. Most large, reputable brokers currently offer both MT4 and MT5 simultaneously. Why? Because they understand there is significant demand for both platforms.

• Brokers Targeting a Broad Segment: By offering both, they can cater to traders loyal to MetaTrader 4 as well as those seeking the advanced features of MT5.
• Brokers Focusing on New Markets: New brokers entering the market may lean towards offering MT5 due to its available license and more modern features.
• Costs and Resources: Managing two platforms does require more investment, but for many brokers, it's worthwhile for client satisfaction and market share.

If you are in the process of following the guide to choosing a safe & reliable forex broker, the platform options they offer are certainly an important factor to consider, tailored to your trading needs, whether it's MetaTrader 4 or MetaTrader 5.

What Does This Mean for You, the Trader?

Looking at all the analysis above, the future of MetaTrader 4 after MT5 is not about "extinction or not," but rather about "evolution and coexistence."

• MetaTrader 4 Won't Disappear Anytime Soon: You don't need to panic that MT4 will cease operations immediately. Its ecosystem is too large and its foundation too strong to crumble overnight. Many brokers will continue to offer it as long as there is demand.
• MT5 Is the Inevitable Future: However, it's also important to acknowledge that MT5 is the direction the industry is heading. With active developer support, more advanced features, and multi-asset capabilities, MT5 will continue to grow and become the dominant platform in the future.
• The Choice Is Yours: The decision to use MetaTrader 4 or MT5 (or even consider 7 popular trading platforms other than MetaTrader 4) should be based on your own needs and trading style.

When Should You Stick with MetaTrader 4?

• If you are purely a forex trader and are already comfortable with the MT4 interface.
• If you heavily rely on Expert Advisors or custom indicators only available in MQL4.
• If you are a beginner looking for a simpler platform to start trading.

When Should You Consider MT5?

• If you want to trade various asset types (forex, stocks, commodities) from one platform.
• If you are looking for more advanced technical analysis features, more timeframes, and depth of market.
• If you are an EA developer and want to leverage the power of the more modern MQL5.
• If you want to be "future-ready" and adapt to industry trends.

Conclusion

The future of MetaTrader 4 after MT5 is not an end, but a new chapter where both platforms will continue to compete and serve different trader segments. MT4 will remain a strong choice for those seeking reliability and an established ecosystem, especially in the forex market. Meanwhile, MT5 will become an increasingly attractive option for those looking for more advanced features, asset diversification, and modern performance.

As a smart trader, it's important not to get caught up in sentiment, but to make decisions based on an analysis of your own needs. There is no platform that is absolutely "best" for everyone. There is only the platform that best suits your trading style, goals, and comfort level. Keep learning, keep adapting, and choose the tools that best empower you on your trading journey. Stay objective and focus on your strategy, not just the platform. Best of luck with your trading!

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By: FXBonus Team