Should you switch to MT5 or stay with MT4 this year?

0
628

An efficient trading platform is as vital as air for online traders, especially during 2022 when volatility across the financial markets remains at concerning levels. Fiscal and monetary stimulus is waning, there is geopolitical uncertainty, and nobody can anticipate where asset prices are headed in a few weeks from now, let alone a few months.

In this environment, it is reassuring to have MetaTrader 4 and MetaTrader 5, two of the most trusted platforms in the industry, at almost every trader’s disposal. If you are still using MT4 and are considering a switch, the first step would naturally be an MT5 download for PC. Let’s study both platforms a bit better, including their advantages and disadvantages, so you can make an educated decision.

Source: https://www.hfeu.com/en/platforms/mt4-mt5-comparison

Your level of expertise

Beginners tend to start their journey in the financial market with FX, simply because currency trading does not require a lot of background knowledge, nor a complex understanding of a broad derivatives market, which is not something that can be said about stocks. MetaTrader 4 continues to be regarded as a platform suited for currency trading, so if you are just starting to trade, go for MT4 at first.

However, if you’ve been trading for a while and asset diversification is part of your plan, then MT5 could be a better choice since this is a multi-asset platform, packed with more advanced features.

Stock market volatility is not abating and despite a recent market rally, Wall Street experts say it could be a trap, so a lot more activity can be expected in the upcoming months. Coping with such conditions can be made simpler by using a platform like MetaTrader 5, which offers optionality in terms of trading tools and other resources.

Tradable assets

Traders should have a list of assets that they monitor every day, while looking for new opportunities. Depending on the size of this list, you might have to consider a platform upgrade to MT5. An analysis of what brokerages are offering shows that with MT4, the asset coverage is generally limited when compared to MT5.

Diversification is a tool for tackling volatility and also a way to explore other markets. On top of FX and stocks, the commodities space is also active, with oil rising on the back of tight supply, in tandem with agricultural and industrial commodities.  It all depends on what you expect to trade and what your broker offers via either of the platforms discussed.

The brokerage offering

It is also important to see what your brokerage infrastructure includes in terms of platforms. MetaTrader 4 is the oldest platform and as a result, many brands that rely on MetaQuotes grant access to it.

Having said that, you should keep in mind that not all brokerages have upgraded their offering to include MetaTrader 5 as well. Some have developed proprietary software, to supplement MT4.

All in all, the ideal platform is the one that you know you feel comfortable with. In case you are a consistent trader and you feel that MT4 is good enough, then don’t make the switch. On the other hand, if you want to take your trading to the next level, MT5 can be a potential solution.

LEAVE A REPLY

Please enter your comment!
Please enter your name here