Why do retail traders still prefer MT5 to any other trading platform?

When trading FX pairs, traders often opt for MT5 which is an advanced trading platform. However, in the beginning, traders still preferred the older version which was a competently different trading platform. MT5 offers everything MT4 did and adds a thing or two of its own.

In the guide below, we will expand on the topic and explain why retail traders prefer MT5 over most other advanced platforms, and whether you should do the same. Let’s now analyse why MT5 has become so popular among retail FX traders over other platforms like cTrader, NinjaTrader, and so on.

MT4 vs. MT5 - The full story summarised

MetaTrader 4 or MT4 was launched in 2004 and has become a symbol of FX trading since then. It is still widely used today and offers superior automated trading capabilities and custom indicators. Similar to MT4, MetaTrader 5 also offers everything from Expert Advisors (EAs) to custom indicators coupled with advanced charting tools and timeframes.

However, MT5 has added several new features including multi-asset support, more order types and timeframes, economic calendar, hedging and netting modes, and so on. The difference is even clearer when we compare mobile app versions of these platforms, where MT5 has a clear advantage of having a modern design and many useful features. It was recently upgraded to satisfy the needs of modern FX traders who operate mainly from mobile devices.

Overall, traders started to adopt MT5 lately as new traders were introduced to MT5 first. MT4 users typically prefer MT4.

Key features of MT5 - Why is it so popular?

MT5 builds upon MT4 as it offers additional features such as more timeframes, an economic calendar, and more order types. However, it still does not support second timeframes, which is a serious disadvantage.

Surely, MT4 does not offer second charts either, but still, it would be useful if the platform included more options. MT5 also provides access to not just Forex currencies, but commodities, stocks, cryptos, and even futures. The platform includes superior charting capabilities like 38 built-in indicators and 21 timeframes, providing an edge for retail technical traders. With a built-in economic calendar feature, MT5 is also useful for traders who employ both fundamental and technical analysis.

MT5’s algorithmic trading advantages

Expert Advisors or EAs are one of the main advantages of MT5, just like its predecessor MT4. The MQL5 is a dedicated programming language for MT5 and is even more capable than MQL4. It allows traders and developers to create complex trading robots (EAs). The platform allows multi-threaded strategy testers for faster backtesting.

This feature is especially useful as it allows for testing several different assets at the same time, enabling traders to quickly backtest their strategies on several assets and reducing the time needed for developing viable EAs. Developers who are accustomed to MT4’s MQL4 will have to learn a few differences between the two languages to start coding for MT5. EAs can be used for alerts or fully automated trading.

Depth of Market and order execution speeds

Another major improvement in MT5 is its Depth of Market (DOM) feature. It enables better price transparency and allows traders to see who is in control of price, bulls or bears. Combined with improved speed of order execution, MT5 can be ideal for ultra-fast scalping methods both for retail and institutional traders. When compared to MT4, MT5 has a slight advantage over its predecessor.

Risk management and hedging features

When it comes to risk management, both MT4 and MT5 are far superior to any web trading platform out there. Both of them offer a multitude of order types and include stop-loss and take-profit orders among them.

While MT4 only supports hedging, MT5 offers both netting and hedging features, making it slightly better for experienced traders with specific needs. Using EAs, traders can deploy advanced stop loss and take profit strategies. Both MT4 and MT5 allow trailing stop loss which can be super helpful for traders to lock in their profits and follow price for maximum returns.

Comparison with other trading platforms

While other advanced platforms like cTrader and TradingView offer modern interfaces and advanced features, they are not as widely available. Many brokers simply do not offer access to these platforms. However, the majority of brokers offer either MT4 or MT5 as their main trading platform. This makes it almost a necessity for retail traders to learn and deploy MT5 as their main trading platform.