Millions of people connect to the global currency market through software environments. MetaTrader 4 and MetaTrader 5 are two leading terminals for remote trades. In South Africa, they are provided by licensed brokers like FXTM. Here are the specifics of each Forex platform and the opportunities it opens.
More and more people are joining the ranks of online traders across the world. With modern desktop and mobile solutions, it is possible to monitor trends and manage positions on the go. Over 15 million retail participants buy and sell virtual instruments like currencies, stocks, and derivatives. Their profits rely on mastery, knowledge, and foresight.
Most Popular Platforms
A trading platform is your gateway to real-money trades. Gone are the days when trading was only possible on the physical exchange and every decision involved phone calls between brokers and investors. With state-of-the-art systems, world currencies are at your fingertips.
Both versions of the MetaTrader program offer digital environments focused on online trading. Functionality, however, differs. The later edition includes more options and features, but it does not render MetaTrader 4 obsolete. While the predecessor is favored by rookies and currency traders, the fifth version is best for diversified portfolios.
What Software Can Do
Foreign exchange has nothing in common with gambling. Success is based on knowledge of market trends and thoughtful decision-making. A trader must keep track of financial news relevant to traded currency pairs. Profit relies on foresight, the objective ability to predict trends through analysis of data.
The task may sound daunting and it would be unthinkable without modern tools. Platforms with their technical aids make success possible. Currency rates are never static as they are swayed by micro- and macroeconomic factors! Luckily, top software includes multiple line graphs, bar charts, and other analytical tools.
Moreover, inherent risks (typical for any investment) may be minimized through special features. For example, ‘take profit’ and ‘stop loss’ indicators allow you to buy or sell currency at a certain price, with trades completed automatically.
Key Features of MetaTrader
Both platforms were devised by MetaQuotes Software Corp. There are few alternatives and MT is the default choice for many. The software works on PC and mobile devices (Windows/Mac, Android/iOS) and delivers an impressive set of benefits. Aside from universal compatibility, these include:
- Wide choice of trading instruments;
- Wide choice of visual aids (tables, bar charts, etc);
- Quick execution;
- Live-streaming prices;
- Access to industry news;
- Audio alerts, etc.
There are two modes: demo and live. The former opens a simulated environment, which is perfect for training purposes. Real-money trading is done with a live account. This is when both profits and risks become real.
Which Version to Pick
The programs are five years apart. Nevertheless, MT4 still finds its loyal audience – rookies and traders who focus on currency pairs. The less sophisticated layout is perfectly suited to their needs. Sometimes, less is more.
Holders of diversified portfolios make the switch to MT5. The platform facilitates work with currencies and derivatives, such as CFDs or binary options. This requires a certain level of expertise and a separate range of visual aids.
Hence, as long as your needs are basic, stick to the earlier version. Inexperienced users are strongly advised to take their time exploring the demo mode. Until you are sure about your strategy, the live trading is extremely risky.
What Makes MT5 Special
It is natural for fresher software to have wider functionality. MetaTrader 5 is no exception to the rule. Despite similar layout and customization potential, the graphics are richer, while analytics are more diverse. The two platforms are based on different languages, which explains fundamental differences in their trading logic.
MT4 is built on MQL4, a position-based language. The successor works with orders. MT5 allows users to create and edit scripts. Here, an operation is completed using a single function, as opposed to several in MT4. Other improvements include the following:
- 21 timeframes (previously 9);
- 38 embedded technical indicators (previously 30);
- 44 graphic objects (previously 31);
- 6 pending order types (previously 4);
- More execution modes;
- Depth of market;
- Built-in economic calendar;
- Netting.
In Conclusion
Obviously, the fifth version of MetaTrader offers wider functionality and advanced tools. However, MT4 is still useful and widely popular. Forex neophytes appreciate the relative simplicity, as it is best for training purposes.
As long as your activity is limited to currency pairs, there is no reason to make the transition. Explore the available indicators and aids, as well as develop your mastery. When you are ready to diversify, MT5 is the best solution.
