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#1 07-12-2024 11:18:15

johnedward
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From: Paris - France
Registered: 21-12-2009
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MetaTrader 5 will surpass MT4 by 2025 in terms of volumes

MetaTrader 5 will surpass MT4 by 2025 in terms of volumes


https://www.forex-central.net/forum/userimages/MT4-vs-MT5.jpg
Nearly 15 years after its launch, MT5 is set to surpass the MT4 platform in terms of CFD volume. This will mark a symbolic shift that has been long awaited by the industry.

Since its release in 2005, MetaTrader 4 (MT4) has been the leading platform for CFD trading. Its dominance is due to its user-friendly interface, extensive library of third-party tools, and exceptional reliability. Traders appreciate MT4's robust charting capabilities, algorithmic trading features via Expert Advisors (EAs), and wealth of educational resources available online. Brokers have also favored MT4 for its ease of integration and high client familiarity.

These factors have collectively made MT4 a dominant presence in the industry, cementing its position as the leading platform for years.

The Little Brother: MT5
Launched in 2010, MetaTrader 5 (MT5) was designed to be a more advanced alternative to MT4, offering additional features such as multi-asset trading, an improved order management system, and more technical indicators. Unlike MT4, which mainly focuses on Forex and CFDs, MT5 supports a wider range of assets, including stocks and futures. Although MT5 offers a more modern and flexible trading environment, adoption was slow at first, largely because traders and brokers were deeply entrenched in the MT4 ecosystem.

The lack of backward compatibility between MT4 and MT5 further discouraged migration, as many users did not want to lose access to their custom indicators and EAs.

A Changing Landscape
In recent years, MT5 has gained momentum, driven by technological advancements, regulatory requirements, and a growing need for diversification of trading instruments. As brokers update their offerings to meet modern standards, they are increasingly promoting MT5. In the meantime, MetaQuotes, the developer of both platforms, has been gradually reducing support for MT4, pushing users towards the newer platform. The growing adoption of MT5 suggests that we may be approaching a pivotal moment in this rivalry.

Yet, CFD traders have always favored the MT4 platform. Whether due to their familiarity with the old platform or other factors, MT4 still holds the dominance today, at least in terms of volume. However, MT4's days of dominance seem numbered and we are getting closer to a time when MT5 will take over with higher volumes.

We can clearly see that the trends are accelerating. In Q4 2023, MT4 maintained a dominant market share of 65.3%, while MT5 held 34.7%. However, this gap has been steadily narrowing. In Q3 2024, MT4's dominance has further eroded to 55.8%, while MT5 has climbed to 44.2%. These figures illustrate a clear shift as traders and brokers increasingly adopt MT5.

https://www.forex-central.net/forum/userimages/metatrader-market-share.png


Will the shift take place in 2025?
The rivalry between MT4 and MT5 reflects the evolution of trading technologies and the changing needs of the financial markets. While MT4 remains the preferred choice for many, MT5's rapid growth signals a broader shift towards more modern and versatile trading platforms.

Looking at the data, we can assume that in a year's time, MT4 is expected to lose another 10 percentage points to MT5. This means that in 2025, we will see MT5 finally win a long-standing rivalry. Will all CFD brokers be ready? They should be.

MetaQuotes to raise MetaTrader license fees next month
MetaQuotes has sent a notice to its clients stating that it will increase the license fees (MT4 and MT5) starting January 1, 2025.

While the software giant did not specify the amount of the increase, an industry source predicted that it could increase by at least 20%.

While MetaQuotes does not publish its license fees, they depend on the packages. According to industry sources, support for a MetaTrader license (desktop, web, and mobile) costs a broker an average of $10,000 per month. Therefore, if a broker acquires a license for MT4 and MT5, he or she must pay a monthly fee of around $15,000 to $20,000. The price increases another $3,000 to $5,000 for white-label platforms.

https://www.forex-central.net/img/platforms/demo-mt4.png   https://www.forex-central.net/img/platforms/demo-mt5.png


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