Trading Platforms Comparison – Which One is the Best Suited?

The work done by all the popular brokerage houses over the past years has created a proper infrastructure for retail traders wanting to be part of the financial industry. If more than a decade ago, the options were limited, traders now find themselves in a position to choose from various trading platforms, each with unique features and tools.

A brief platform comparison is thus required, so beginners just getting started can see what the main benefits are when using software developed by MetaQuotes or other proprietary solutions.

MetaTrader 4 (MT4)

Developed more than 15 years ago, MetaTrader 4, or MT4 as it is commonly referred to, continues to be a platform trusted by a large audience of traders. Designed for forex and futures trading, it is helpful when analyzing financial markets, performing advanced trading operations, or running trading robots (EAs).

MT4 integrates various technical analysis tools, including moving averages, RSI, Stochastic, and other oscillators, as well as the ability to integrate personalized indicators. Security and convenience are guaranteed since the platform meets the highest security standards, while also offering a user-friendly interface.

MetaTrader 5 (MT5)

Even though it was also developed by MetaQuotes and released as an updated version of the MT4 platform, MetaTrader 5 was actually built from scratch, integrating a broader range of indicators, and also using a different language for EA programming – MQL5.

Same as with MT4, there is MT5 for PC, mobile devices, and even a web-based solution for traders wanting to use it via browser. Traders can use paid VPS services to increase the accuracy of trade execution.

As compared to MetaTrader 4, MetaTrader 5 had been designed as a multi-asset platform, allowing customers to get involved in more asset classes. Volatility is not limited to stocks and FX; Bonds are also heavily traded instruments on the back of inflation expectations, the same as it goes for commodity prices. 

Proprietary platforms

Traders not fancying platforms developed by MetaQuotes have the option to rely on proprietary solutions. In this case, brokerages have developed new software that comes hand in hand with a unique user-friendly interface, as well as a customized set of trading tools, in line with what customers are assumed to expect.

Proprietary platforms are advantageous because they integrate all the knowledge accumulated by the brokers over the years, based on the feedback received from clients. However, on the downside, these solutions might not provide features like support for Expert Advisors, or the ability to write trading robots, as is possible with MetaQuotes.

How should traders choose a platform?

When choosing a trading platform, traders need to consider their expectations, the trading strategy and trading tools covered, as well as the instruments available for trading. In some cases, brokerages will include only a limited number of assets in some platforms and all in their proprietary solutions, to incentivize more traders to use their software. Keep in mind that there is no one-size-fits-all and any platform will provide both advantages and disadvantages. It will come down to the trader to figure out what’s best.