Buy MT4 or start MT5 turn key: overview on main advantages

MetaTrader is a comprehensive trading program offered by brokers for trading in the stock market. It is developed in two versions: Metatrader 4 and 5. Both of these versions provide an opportunity to get a broad understanding of various movements in the financial market. But which of these programs is better? Now we will examine this issue in detail.

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Advantages of buying MT4 turnkey solution

MetaTrader 4 is a powerful free online trading platform that allows you to trade from your phone, set up automated trading using trading advisors, run scripts, monitor custom indicators, subscribe to trading signals and extend functionality with components from the MQL5 Market.

Functions

MetaTrader 4 contains everything you need to trade online:

• shares;

• indexes;

• currency pairs;

• raw materials.

MT4 allows you to see current price and download historical data for free. Traders have the ability to open charts with different timeframes to better understand the market trend and add indicators for technical analysis. Having taken hold of MetaTrader 4, you get the opportunity to subscribe to trading signals in order to trade automatically.

MetaTrader 4 is able to adapt to your needs. Using the MQL language, you will discover the possibility of creating scripts that will perform the actions you specify, custom indicators if the ones that already exist do not suit you, and trading advisors to perform automated tasks and even automated trading without the need for your control. For this you will need MetaEditor.

History

MetaTrader is a currently popular platform that was developed back in 2002 by MetaQuotes Software. It currently exists in two versions: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MetaTrader 4 is not the latest, but the most popular version among brokers and traders. Developers from all over the world have also created a huge number of components for the MT4 platform over the past few years to make it even more powerful. 

Keep in mind that there is no native MetaTrader platform for Mac or Linux. Therefore, anyone who wants to use MetaTrader with these operating systems will need to find some kind of workaround and use additional software.

Components

MetaTrader contains several components. Traders do not need to study them all in detail, but it is useful to know what these components are and what functions they have.

1. The client terminal is the software that traders use to view rates and submit orders.

2. Mobile application is a trading platform in your phone.

3. Server is a software that works according to the request of the broker. It processes information about rates and orders and registers all transactions.

4. Administrator: it’s a component that manages the server.

5. The purpose of the manager is to manage the client’s account.

6. A data center is a kind of intermediary proxy that facilitates transactions between the server and clients.

Advantages of starting MT5 turnkey solution

Metatrader 5 is a software package developed by the international developer MetaQuotes, which is designed to make money on exchange and over-the-counter markets. It combines several software, which can be conditionally divided into two parts: brokerage software and client software. Brokerage software is the core, server part and management (Server, Administrator, Manager, Data Center). With the help of these components, the broker is able to accept requests from traders for the purchase/sale of assets, process them, and send them to providers and liquidity aggregators.

Client software (Client Terminal) is the MT5 trading platform itself, downloaded by the trader from the broker’s website and installed on a personal PC, with the help of which transactions are made. For more than 10 years, MT5 has not managed to become more popular than MT4.

In 2023, MetaQuotes Corporation announced its intentions to popularize and promote MT5 and to phase out support for MT4. MetaQuotes is confident that this will initiate the predominant use of MT5 and in 5 years the company will be able to completely abandon MT4. But at the moment, traders still use MT4 with great pleasure and are in no hurry to switch to MT5.

Considerations for choosing between MT4 and MT5 turnkey solutions

It should also be noted that at the moment the Metaquotes regulator is starting to be more cautious and picky about unregulated brokers. It is worth saying that this is one of the most serious financial regulators in the world, which seeks to provide clients with a high level of capital protection and income generation. As a result, Metaquotes has become more demanding of unregulated users of MetaTrader products.

Now, a brokerage license is required to use and connect MT5. Regulated brokers can now request all the necessary information to identify a client, including data on employment, income, trading experience, etc. Thus, in order to receive the MT5 platform, the brokerage company must contact MetaQuotes, the developer of the MT5 platform, and request access to the platform , demonstrating to the regulator the presence of a brokerage permit to conduct activities.

A special difference between the platforms is the accounting of client orders. The concept of netting and hedging accounting systems was introduced:

• hedging system. Classic MT4 system. The owner of such a system has the right to open any number of long and short positions for one asset. It is impossible to increase the volume of an open position, but it is possible to open a new order;

• netting system. Innovative. In such a system, you have the right to open only one transaction for one asset, and both long and short positions are not allowed at the same time. If you simultaneously open 2 deals in the same direction, then the average opening price will be calculated. The lot is cumulative.

When opening an account, a trader has the right to choose the version of the system that he/she likes best.

Another feature is that the new version of the system has an improved strategy tester. MT4 has two difficulties: slow testing speed and a large error due to the fact that the tester does not take into account all factors. The following series of changes have been made to the MT5 tester.

1. Speed. Now you can conduct a more accurate test in just 5-7 minutes.

2. Cloud data processing model. There is a selection of the parameters of the trading system, a run through the history of quotes of each combination and the choice of the most successful of them.

3. The new software package added the ability to simultaneously test the strategy on several trading assets.

4. Forward optimization. In MT5, the quick testing function was removed, since such testing showed low accuracy, and forward optimization was added instead of this function.

Conclusion

MT4, which was created in 2005, is very popular among traders and brokers. In 2013-2014, MetaQuotes Software Corp introduced many updates, which made the system even more perfect and easy to use. There are many new features, and the programming language has also been updated. MT4 has made it easier to trade. The platform combines several financial instruments. Traders have the opportunity to trade on the Forex market, stocks, commodities, indices, using only CFDs.

In 2010, the company also showed the world its new brainchild: it’s MT5. This version brought improvements to MetaTrader 4. MT5 is a more modernized version. MT5 is the best choice for online trading, eliminating the need to switch from one platform to another. This platform is incredibly simple and feature rich. 

The author of this article is Denys Chernyshov - CEO and founder of the world-famous law firm Eternity Law International.