Advantages Of MetaTrader 5 For Malaysian Forex Traders In 2021

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JAKARTA - MetaTrader 5 (MT5) may not be as popular as MT4, but there are some advantages that have never been obtained from a forex broker that supports MetaTrader 5, for example, such as FXTM (Forextime) in Malaysia.

If you are a beginner or a professional trader, you may have heard of MetaTrader 4 (MT4) as its popularity has reached global benchmarks and has undoubtedly set the standard in the forex industry at some point.

This software was first launched in 2005 and has caused a lot of furore among retailers since then. For the same reason, most forex brokers offer MT4 as their main trading platform.

Five years later, MT4 parent company, MetaQuotes Inc., launched a new platform called MetaTrader 5 (MT5). The updated platform is designed to provide a more sophisticated and comfortable trading experience, but does not get the same attention as its predecessors.

Problems With MT5

In general, MT5 has more advanced technology and a more complete package than MT4. MT5 uses a programming language called MQL5 while the language used in MT4 is MQL4.

MT5 is not backward compatible, which means programs on MT4 cannot run on MT5. This can be a challenge for traders who wish to update their MQL4 based software from time to time. Here are the numbers of traders who landed on MT4.

Another big problem with MT5 is compliance with the US "No Hedge Rules", which US Forex brokers have to act on under FIFO (First In, First Out) rules. This means that a trader who opens two positions in the same currency pair is not allowed to close both positions at the same time.

This differs from MT4 which allows hedging and tracking of each trade separately so that traders can manage their positions separately. This may not be a problem for US traders who also need to comply with the rules, but traders around the world may find regulation without hedging boring.

MT5 advantages

Despite all the problems that make MT5 less popular than MT4, it has several advantages that are well worth considering. MetaQuotes Inc. launched MT5 in 2010 with good reason. The platform is developed for a large number of users.

Not only suitable for forex traders, but also very suitable for stock and commodity traders. The timing of the MT5 launch actually coincides with the rise of stocks and commodities in retail, so the platform is designed to adapt to the market and attract a wider audience. Therefore, MT5 is the best choice for a variety of traders who trade in different markets.

In addition, MT5 uses more advanced technology than MT4. First, it has an improved retest feature which allows you to test programmed trading strategies more quickly and secondly, it allows you to retest several currency pairs at the same time.

These functions are very useful for operators who have to do a lot of testing during their operation. They can also execute orders with multiple accounts through several brokers. Combined with the various technical indicators and analytical objects provided in MT5, it is much easier to follow market trends.

MT5 also receives regular updates to improve its performance. The "no hedging" condition appears to have been fixed with additional "hedging options" which could be linked to the platform if the broker provided it to enable a hedging strategy for clients.

Finally, MetaQuotes inc. trying to direct users and developers of its software to MT5. It started in 2015 when MT4 renewals were minor and a few years later the company decided to stop asking for new licenses for MT4. There is a possibility that MetaQuotes will stop updating MT4 altogether in the future.

The conclusion

The trading platform is one of the most important tools to choose before entering the forex market. Although every trader is free to choose his platform, in reality his choice is limited by the forex broker he uses, because not all brokers provide all trading platforms.

Some lines do not have platform-specific support and only provide access via bridges, while others have their own platform. Although choosing a broker based on the security component is more important than the platform they offer, traders should consider the platform features and see if they are used to using the service.

When choosing the best trading platform, the first thing you need to understand is what you want and need in trading. Basically, you want a reliable and easy-to-use trading platform that doesn't change or break frequently. You can also weigh the pros and cons based on your trading goals and strategies.

Compared to MT5, it is practically more suitable for traders who are interested in advanced charts but less interested in MQL4 incompatibilities. If you fall into this criterion, choosing MT5 might be the best choice for you.