The global currency market never sleeps. Five days a week, immense volumes are exchanged between institutional and retail traders. With modern sophisticated software, anyone can try to capitalize on economic trends. Top trading platforms for internet-assisted speculation are easy to download and install. Here is how they compare.
Licensed brokers like FXTM provide the software free of charge. The two most favored terminals today are MetaTrader 4 and MetaTrader 5. Although the versions are five years apart, the earlier edition is still loved by millions. Both platforms offer a digital trading environment, and they facilitate finance management. Over 15 million people have engaged in online trading and many of them work through MetaTrader.
What Best Software Offers
A trading terminal connects you to the global over-the-counter market. It is estimated that daily volumes of the currency exchange exceed 6 trillion US dollars. The profit potential is high and it is now accessible to individuals. Decades ago, only large institutional players were allowed to benefit from market trends. Today, anyone can become a retail trader – all you need is knowledge, an account, and the right software environment.
Thus, digital terminals make remote trading and investing possible. A user can analyze the market situation, manage positions, and execute trades wherever they are. Thanks to smooth mobile apps, this may even be done on the go. MetaTrader 4 and MetaTrader 5 provide convenient systems packed with helpful graphs, charts, and other aids. With technical tools, forecasts are more accurate and profits more attainable.
Key distinctions lie in functionality. The earlier version has fewer features and a less sophisticated look, but it is by no means obsolete. The two versions suit different purposes. The choice depends on your field of trading.
Any experienced trader knows that profit is not random. Consistent success relies on solid knowledge of relevant trends, persistence, and skill. Forex traders never stop learning, developing, and revising their strategies. Whatever instrument you pick, be it a currency or binary options, decisions should be based on current dynamics and the most likely future changes.
For example, when trading a currency pair, you need to be aware of changes in the two respective countries. If the base currency is the US dollar, while the quote currency is the South African rand, the exchange rate will fluctuate based on factors affecting both economies. Digital platforms give instant access to the latest financial news and send audio alerts for maximized convenience.
Without multiple visual aids (charts, tables, graphs, etc), the analysis would be daunting. Moreover, special features like ‘take profit’ and ‘stop loss’ are indispensable for risk management. Thanks to them, users may have their trades executed automatically at the most favorable price levels.
MetaTrader: Basic Overview
The terminals are popular products of MetaQuotes Software Corp. The software remains the industry favorite due to its convenience and functionality. Both Windows and Mac are covered, along with iOS and Android. Users of laptops and portable devices appreciate the smoothness of operation. The platforms are notable for features like:
- The broad range of trading instruments and visual aids;
- Quick execution;
- Live-streaming prices;
- Industry news;
- Sound alerts, etc.
Both platforms can be downloaded from the website of a registered local broker. Every trader can explore the system in two modes: demo or live. Newbies are strongly advised to practice in the risk-free demo environment where all the features can be tested at your own pace. When users are sure about their skills, they register a live account and trade with real money. The demo stage is the initial step for everyone and it must never be disregarded.
MT4 or MT5?
As long as you focus on currency pairs, MT5 can seem confusing. Rookies and single-instrument traders appreciate the relative simplicity of interface in MetaTrader 4. Unless you manage a diversified portfolio, less is more.
Experienced users who wish to profit from CFDs, stocks, or binary options need more sophisticated aids. This is when MT5 is perfectly relevant. It has rich graphics and deeper analytical functions.
MT5 is built on an order-based language. While MT4 requires several functions for a single trading operation, MT5 needs just one. It also allows the creation and editing of scripts. Besides, there are:
- More timeframes (+12);
- More embedded technical indicators (+8);
- More graphic objects (+13);
- More pending order types (+2);
- More execution modes;
- Depth of market;
- Built-in economic calendar;
MetaTrader 4 and MetaTrader 5 are two leading terminals for internet-assisted trading. While the fourth edition is perfect for novices, the successor is the top solution for diversified sets of instruments. Both platforms offer convenient interface, sound alerts, news, and varied graphic aids. These features are indispensable for successful Forex trading.