Forex brokers offer a variety of software tools. Many companies develop their own applications; others still rely on MetaTrader 4 or MetaTrader 5. At first glance, this seems counterintuitive, as these systems appeared over a decade ago — in 2005 and 2010, respectively. Is MetaTrader still worth your time?
Overview of the Systems
For brokers, generic platforms are the most cost-effective solution, as they do not have to invest in their own app development. The products of MetaQuotes Software do not look revolutionary anymore, but they still have merits, such as:
1. Support of Diversified Portfolios
Both platforms were designed for retail Forex trading, but the 5th edition has wider functionality and more assets (learn how to use MetaTrader 5 in our guide). Your portfolio may include currencies, spot metals, and a broad spectrum of CFDs (Contracts for Difference). The latter include derivatives for stocks, commodities, market indices, and more. Some brokers offer thousands of options; others limit them to a few hundred.
2. Fundamental and Technical Analysis
Both versions of the platform suit the needs of fundamental and technical traders. The first group requires access to financial news and economic calendar (available in MetaTrader 5). Technical traders may use flexible charts with dozens of indicators and time frames (from 1 minute to 1 month). This software supports all popular strategies, from scalping to swing trading. The MetaTrader marketplace offers over 2,000 additional indicators.
3. Demo and Live
Both versions of the platform can work as simulators. Switching between the demo and live mode is easy, and the training format is fully functional. Traders can practise safely before putting their capital at stake.
Both systems allow users to copy the methods of more experienced traders. Copy trading is a significant advantage for beginners, as they can see how effective strategies work in practice and profit from the knowledge of the highest performers.
Both M24 and MT5 support Forex robots, also known as Expert Advisors. They may be programmed to analyse the market or even execute trades for you. Over 1,700 robots are available through the official MetaTrader marketplace. Like copy trading, this option is not always available in proprietary trading systems. Some brokers regard it as market abuse.
Finally, The MetaTrader software is compatible with all popular platforms. Traders can download software for Windows or Mac, work in a web-based terminal without downloads, or install mobile apps on Android or iOS devices. As all of them connect to the same servers to share data, you may easily switch between platforms during the day. Pick up where you left off!
To Sum Up
The MetaTrader platforms are still relevant thanks to their functionality and flexibility. Thousands of technical indicators and Expert Advisors, support of demo and copy trading, and versions for all popular platforms, including the web, make them attractive for brokers and traders.