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#1 12-06-2021 14:25:48

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3106

MT5 will overtake MT4, but this will take time

MT5 will overtake MT4, but this will take time
MetaQuotes Software launched MetaTrader 5 (MT5) over 10 years ago. Despite the added features and many advantages over its predecessor, MT4 remains the preferred forex and CFD trading platform for brokers and traders.

But things have changed. Recently, the Russian-born software company announced that the number of companies using MT5 has exceeded the number of companies using MT4.

This is quite a feat for MetaQuotes, as it took the refreshed version 11 years to overtake its predecessor in one form or another, even after a massive push from the company. But, what has changed?

MT5 is clearly the superior platform

MT5 is without a doubt a superior trading platform than MT4. The new version supports trading a wide range of markets, compared to MT4, which only supports forex and CFD trading. In addition, the platform offers better control thanks to the reduction in the number of third-party plugins and is equipped with an STP gateway which allows any MT5 brokers to connect directly to any other MT5 broker to obtain liquidity.

The main benefit we see in MT5 is the technology update done by MetaQuotes. This makes it much more versatile for our traders, says Deepak Jassal, Executive Director of M4Markets.

"Due to the technology that powers it, MT5 has a lot more capabilities, and it just offers more trading tools to the user, it should be the tool of choice for traders."

Despite its technical superiority, MetaQuotes had to push a lot to force brokers to adopt MT5. The company stopped selling MT4 three years ago and also made drastic changes in its pricing, making the new platform much cheaper than the old one.

From a broker's perspective, this may be the recent pricing issue, says Michał Karczewski, co-founder, and COO at Match-Trade Technologies, a technology provider to the trading industry.

"After MetaQuotes changed its pricing policy and waived licensing and installation fees for white label platforms, the monthly cost of the MT5 platform is significantly lower than that of MT4, although it does come with some restrictions."

Data shows that MT4 dominates

Despite all these efforts, it remains difficult to challenge the dominance of the old platform.

84.6% of the trading volume distribution on MetaQuotes platforms was dominated by MT4 in 2020, while MT5 managed to have the rest. Additionally, MT4 led the overall market with around 67% market share at the end of last year, while MT5 and other platforms closed at 12.6% and 21.2%, respectively.

While these numbers have only been gathered from a few brokers and do not represent the entire industry, they certainly show the trend and inclination of traders.

"MT4 is a cult platform, and its release in 2004 was a breakthrough in the forex market; therefore, its successor, despite obvious improvements, took many years to match this success," Karczewski adds.

MetaQuotes has surely revealed the recent dominance of MT5, but this figure is only for companies using MT5, not the share of trade volume executed.

Karczewski points out that many brokers only supplement their existing MT4 offering by adding the MT5 platform.

Brokers who already have the MT4 platform do not switch to MT5; on the contrary, they buy MT5 as a second platform to give their clients the choice."

MT5 will replace MT4, but slowly

However, the industry remains optimistic about the future of MT5. The slow but sure adoption can be anticipated by the 7 million lines of code already written on MT5, while the figure was only 2 million for the previous version.

Yes, MT4 is still popular among old school and newer traders, but we believe traders will give up on it in the near future, says Andrea Kapsos, Managing Director at Match-Prime Liquidity.

Additionally, with the end of MT4 support and development, brokers and traders are finally faced with the difficult decision to upgrade to the updated platform. In addition, MetaQuotes says it plans to bring "many important and useful updates" to MT5, but that MT4 will obviously be deprived of them.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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