MetaTrader: Working Principles of the Trading Platform

Trading in Forex and other markets is a very attractive segment for investments. Many users are thinking about how to start a forex business. After all, the currency is traded here – assets with ideal liquidity. Brokers provide clients with a platform and the necessary tools to conclude transactions. And it is important that orders are executed instantly, have zero spread, and most importantly, the user must have a sufficient number of trading instruments.

Obviously, a quality trading platform is integral to success. Traders and investors in different markets use a wide range of platforms. However, the two most popular in the market are MT4 and MT5. This MetaTrader platform review will allow you to understand what are the advantages and disadvantages of each of these platforms.

History and Popularity

MetaTrader developer introduced the fourth iteration of the trading platform back in 2005. It is this generation that now holds the title of the most popular and best MetaTrader platform. According to statistics, 34.4% of brokers use this particular version. The fifth-generation was introduced in 2010. The platform received additional features and tools, as well as expanded the list of available markets. However, MT5 now ranks second on the popularity list (14.3%).

Versatility and Convenience

The 4th generation MetaTrader online trading platform has been specially designed to provide data to both novice and experienced traders who need a lot of information to carry out their trading activities. It provides a wide range of financial instruments including CFDs, futures, commodities, and even cryptocurrencies that are not supported by many platforms.

Indeed, newbies will find that this is a good way to get the data they need to start learning more about the entire market.

Beginners will also benefit from the fact that they will receive advice from a specialist, as well as various other functions. This is great for understanding how to trade better and start making profits.

Meanwhile, experts will receive all the information they need to better execute their trades. There are built-in indicators and charting tools that will greatly facilitate technical analysis.

Metatrader 4 is a great tool for users as they can deploy it quickly and easily without facing major issues. Moreover, the services provided by Metatrader 4 include very user-friendly charts and interfaces to make it even easier for traders to understand the data they are checking.

Most Serious Competitor

Metatrader 5 differs from the Metatrader 4 platform not only in its name but also in the focus of the platform. MT5 provides users and investors with the ability to focus on trading stocks and commodities. Metatrader 4 will be used more for users who want to trade in the foreign exchange market.

MT5 is available for web users as well as online and mobile versions. In addition, this platform has a great interface that will make trading much easier for all of its users. At the same time, the platform includes financial news from international agencies.

Also, MetaTrader 5 offers other services such as trading robots, a database of strategy developers, copywriting – just like the MT4 platform – and much more. If you are a user of the Metatrader 4 platform, it may take some time before you can use MT5 services, as these two solutions have two different programming languages. Overall, this platform was created for the more advanced traders who are performing day trading or trading swing market strategies.

Major Differences

Let’s take a closer look at how MT4 and MT5 work and take a look at the main differences.

Available Markets

  •         MT4 is focused exclusively on working with currency pairs, contracts for difference, and other instruments of the Forex market.
  •         MT5 is a multi-market platform that allows you to work with other markets. For example, you can start a cryptocurrency business or enter into transactions in the stock market. Simultaneous work on several exchanges becomes available.

Work Speed

By the speed of work, the fifth version definitely wins. It is a fully functional 64-bit multi-threaded platform. It can run on 32-bit operating systems as well. As many as 4 dedicated servers help to process data faster. They target:

  •         access;
  •         trade;
  •         stories;
  •         reserve copy.

If we compare in this context, which is better – MT4 or MT5, then the earlier development loses, because it has only one dedicated server, which, moreover, is limited to other servers in connection.

MT4 is a 32-bit single-threaded platform with 2GB of memory. If you use it on a 64-bit operating system, then the memory increases to 4 GB. The speed drops when the software is used on a VPS server with multiple CPU cores.

Indicators, timeframes, order locking

There are 9-time intervals in MetaTrader 4: minute – М 1, 5, 15, 30; sentries – H 1 and 4; daily D1, weekly W1, and a period of one month – MN. The new version, MT5, has a lot more timeframes for analysis. In addition to those listed above, added M – 2, 3, 4, 6, 10, 12, 20; Н – 2, 3, 6, 8, 12. If you right-click on the chart of the selected asset, you can set any non-standard timeframe.

In the early version, there are 30 or 50 (data from various sources) indicators built into the platform, indicating the exact points of entry and exit. While in the latest development there are 38 of them. When performing various operations in MT4, a sound signal is given, which contributes to more comfortable trading. In MT5, it is still possible to open orders without locking.

The Main Problem That Can Be Solved

As you can see, MT4 and MT5 are handy tools for trading Forex or other markets (MT5). But there are also some nuances. For example, the cost of a product ranges from $100,000 to $200,000. Not every broker is able to afford these costs. However, there is an effective and high-quality solution that allows you to achieve an excellent result and spend a minimum of money. We are talking about MetaTrader White Label Solution.

This is an affiliate program, according to which the developer of technical equipment (software, scripts, a mechanism for bringing transactions to the external market) transfers it on a paid basis to the user (the founder of a new brokerage company). It differs from buying or renting in that the MetaTrader 4 or MetaTrader5 White Label platform can be used under its own brand, but the platform remains with the developer.

By choosing MT4/5 White Label, the client receives important advantages that allow to create your own crypto exchange and win the competition for a potential client.

  •         The partner saves money by getting a ready-made, proven platform with which he can develop his brand;
  •         MetaTrader White Label reduces operating costs.

But it is also important to choose a quality partner offering the best versions of the White Label MetaTrader platform. B2Broker will help the company to operate as efficiently as possible. The company is a reliable partner offering a quality product at a favorable price. Moreover, the service is constantly introducing innovative solutions, as well as providing high-quality round-the-clock support. This means that you can quickly resolve any issues that arise. And most importantly, B2Broker not only offers MetaTrader4 White Label but is an excellent liquidity provider and helps you to obtain the necessary documents and licenses. With B2Broker, you can create the white label trading platform of your dreams.

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