The forex market has continued to grow consistently over the years, with an estimated $6.6 trillion traded globally every single day by the end of 2020.
The corresponding number in 2016 was just $5.1 trillion, while it was as low as $1.2 trillion at the beginning of the digital age back in 1995.
This is largely being driven by the growing number of retail traders, who utilise trading platforms such as the MetaTrader 4 and MT5. But what are the advantages of using the latter?
The MT4 vs. MT5 – The Key Differences
Both the MT4 and the MT5 offer pioneering automated trading systems, complete with expert advisors and advanced forex robots.
However, each platform also performs very different functions overall, while the MT5 (launched in 2010) should be considered as a direct upgrade on the MT4 (which had previously been released in 2005).
Interestingly, the MT4 was purpose built for forex traders, whereas the MetaTrader 5 introduced a broader range of features and Depth of Market (DoM) data that enabled investors to target asset classes such as futures, stocks and CFDs.
Completing an MT5 download also introduces you to a broad range of additional trading features, despite boasting a similar layout and interface design.
Why Should You Start Using the MetaTrader 5?
Ultimately, if you’re a retail trader whose sole purpose is to buy and sell currency, then the MT4 represents the ideal starting point for you.
However, there are numerous instances in which you should operate using the MetaTrader 5, enabling you to benefit from several important advantages. For example:
#1. The MT5 Offers Access to a Broad Range of Assets
As we’ve already touched on, the MT5 offers users access to a broad range of assets, and in this respect, it’s ideal for investors who are looking to build a broad and robust portfolio.
From commodities such as gold to stocks and indices, the MT5 boasts considerable coverage of the financial market, allowing you to scale your efforts more organically in line with profitability and experience.
This is why many traders transition from the MT4 to the MT5 over time, even though the former remains the single most popular retail trading platform on the market.
#2. The MT5 Features More Time-Frames
The MT5 also offers access to a larger number of time-frames and pending order types, which immediately affords investors greater flexibility and room for manoeuvre.
With the MT5, for example, you can access 11 types of minute charts and seven iterations of hourly charts, while up to 365 time-frames are available in total.
So, regardless of your wider trading strategy or investment outlook, you can perform detailed and more tailored analysis of the market prior to executing individual orders.
#3. The MT5 is More Efficient and Easier to Use Overall
As a general rule, the MT5 has built on its predecessors simplicity and ease-of-use, creating an even more efficient platform that translates into relatively seamless trading.
For example, advanced users have the capacity to write and alter scripts as necessary using the MT5’s MQL5 programming language, while trading operations can be completed by sending requests through a simple, single function.