Updated 2021-06-11

Michał Karczewski, answers Finance magnates questions regarding recent MetaQuotes announcement about MT5 platform becoming more popular among Forex Brokers than the flagship MT4 .

FM: What do you think are the advantages of MT5 over MT4?

Read the comparison of popular trading platforms

Of course, MT5 is by definition an improved version of MT4; it’s more flexible and has a higher capacity. There are many amenities for traders in the new platform. MT5 provides broader analysis possibilities, be it more time frames to evaluate price changes or more indicators for technical analysis. But perhaps the most significant change is the ability to trade on almost all financial markets, including forex, stock exchanges, futures and many more compared to limited assets available for MT4 users.

And from the broker’s perspective, it can be the recent question of pricing. After MetaQuotes has changed its pricing policy and has waived off the license and setup fees for white label platforms, the monthly cost of the MT5 platform is significantly lower than the MT4 fee, though it comes with certain restrictions.

MT4 is a cult platform, and its release in 2005 was a breakthrough on the forex market; therefore, its successor – despite evident improvements – needed many years to match this success. I think it will take a while; perhaps it needs a new generation of traders to emerge for MT5 to replace MT4 completely.
As Broker solutions Hub, we see an increased interest in the MT5 platform, which is why we have recently upgraded our MT5 license to Enterprise. But we have noticed a certain pattern among our clients. Brokers who already have the MT4 platform do not transfer to MT5; instead, they purchase MT5 as a second platform to give their clients a choice. In addition, the aftermarket sales started rising. Brokers repurchase entire businesses operating on MT4, so this platform, although outdated, will not disappear quickly from the market.

It’s no surprise to me. MetaQuotes has been striving to extinguish the MT4 platform for a long time. They have not been developing or supporting it for years, the sale of MT4 Servers has also ended, so this is a natural result of the adopted strategy.
However, I can see several reasons why MT4 WL is still very popular.
First of all, the MT4 platform is much easier to manage, especially for a beginner broker. Second, even though the full MT5 Server cost starts from $5000, this basic package doesn’t include all the necessary features like a data feed or even a bridge to connect liquidity. So despite the significant price reduction and making the MT5 server a lot more affordable, Brokers might still prefer the White Label solution – be it MT4 or MT5, as in most cases it already includes data feed, bridge and even CRM with payment gateway. All-in-one solutions are just more convenient.

Read the full editorial’s analysis at Finance Magnates

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