MetaTrader 4 or 5: which one dominates forex trading?

The MetaTrader 4 platform has been on the market for 18 years and its revamped version, MetaTrader 5, for 11 years. According to data from MetaQuotes, it took almost a decade for MT5 to overtake its older version in terms of brokers' server utilisation. But has it also become the platform of choice for retail traders? Which version of MetaTrader is the king of forex trading?

MetaQuotes boasts MetaTrader 5 stats. It has finally overtaken MetaTrader 4.

On 8 June of last year, MetaQuotes reported that for the first time in history, MT5 had become a more popular platform than MT4. More popular among brokers (this is an essential factor, which we will discuss later). The developer said at the time that the number of lines of code in MetaTrader 5 "exceeds 6 million", while the previous version had "only 1.5 million".

Once again, MetaQuotes presented a snippet of their stats last November when they announced that MT5 was widening the gap with MT4. The percentage of server utilisation for the old platform fell to 35.8%, while it increased to 62.4% for the new platform. “Use of MetaTrader 5 trading servers by brokers is increased by a factor of 1.5, compared to previous versions of the platform,” MetaQuotes reported at the time.

MT4 was primarily built for the forex markets. With its simple interface and ease of use. It is well suited to novice traders. MT5 can handle multiple assets. The term "multi-asset" refers to an asset class that includes CFDs, stocks, options and futures. Today, with traders increasingly looking to diversify their investments, multi-asset trading has become an important way for brokers to attract clients.

MetaTrader 5 is gaining momentum, but MetaTrader 4 remains the king of forex trading.

While MetaTrader 5 has indeed become the most popular choice among brokers (could it be otherwise in a situation where brokers can no longer buy MT4?), turnover statistics among retail traders suggest that the good old MetaTrader 4 continues to dominate the forex/CFD industry.

Over the past few years, it has been seen that some traders have switched to MetaTrader 5. However, statistics still favor the older version of the platform. In the third quarter of 2019, 92.3% of foreign exchange trading volume was generated by MetaTrader 4.

In the following quarters, this value gradually decreased to reach 75% in the fourth quarter of last year, more than two years later. The downtrend is clearly visible, but at this rate, MT4's dominance might not be in jeopardy for very long.

MetaQuotes as a platform provider continues to dominate the market, effectively countering growing competition. MT4/MT5 remains the most popular choice for traders due to the trust MetaQuotes has earned over the years.