The MetaTrader 4 platform has been on the market for seventeen years and its revamped version, MetaTrader 5, for twelve. MT5 took almost a decade to overtake its older version in terms of server usage by brokers, according to MetaQuotes data. But, has it also become the retail traders’ platform first choice? Which MetaTrader version is the king of Forex trading? We are answering this question in the latest Quarterly Industry Report (QIR) by Finance Magnates Intelligence.
MetaQuotes Boasts MetTrader 5 Stats. It Has Finally Overgrown MetaTrader 4
On June 7, 2021, MetaQuotes reported that MT5 had become a more popular platform for the first time in history than MT4. More popular among brokers (this is an essential factor, that we will discuss later). The developer reported at the time that the number of lines of MetaTrader 5 code ‘exceeded 7 million’ when the previous version numbered ‘only 2 million’.
Once again, MetaQuotes presented a snippet of its statistics last November when it informed that MT5 was spreading its lead over MT4. The server utilization percentage of the older platform dropped to 36.7%, while it increased to 63.3% for the newer platform. “The MetaTrader 5 trading servers utilization by brokers is increased by a factor of 1.5, compared to the previous platform version ones,” MetaQuotes reported at the time.
“MT4 was primarily built for the forex markets. With its simple interface and ease of use. It is well suited for beginner traders. MT5, on the other hand, can handle
multi-asset
Multi-Asset
Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets.
Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets.
Read this Term trading, including CFDs, stocks, options and futures. Today, with traders increasingly looking to diversify their investments, multi-asset trading has become an important way for brokers to attract clients,” said Charlotte Day, the Creative Director at Contentworks Agency.
MetaTrader 5 Gains Traction, but MetaTrader 4 Is Still the King of Forex Trading*
While MetaTrader 5 has indeed become the more popular choice among brokers (could it be any other way in a situation where brokers can no longer buy MT4?), turnover statistics among retail
Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term traders suggest that good ol’ MetaTrader 4 continues to dominate the FX/CFD industry.
Over the past few years, it can be seen that some traders have switched to MetaTrader 5. However, statistics still favour the older version of the platform. In the third quarter of 2019, 91.4% of FX volume was generated by MetaTrader 4.
In subsequent quarters this value gradually decreased to reach 74.9% in the fourth quarter of 2021, more than two years later. The downtrend is clearly visible, but at that pace, MT4’s dominance could be unthreatened for a very long time.
*Please note, that the data may not illustrate an accurate or complete picture of the retail trading industry. They are based on information that brokers provide to Finance Magnates Intelligence and which support both platforms.
Notwithstanding the above, MetaQuotes as a platform provider continues to dominate the market, effectively countering the growing competition. Charlotte Day looks at this phenomenon from a marketing perspective. She thinks that MT4/MT5 still remains the most popular traders’ choice due to “the trust that MetaQuotes has been able to garner over the years.”
Do you want to learn more, read the whole analysis and see more in-depth statistics?
Subscribe to our latest Quarterly Industry Report now!
The MetaTrader 4 platform has been on the market for seventeen years and its revamped version, MetaTrader 5, for twelve. MT5 took almost a decade to overtake its older version in terms of server usage by brokers, according to MetaQuotes data. But, has it also become the retail traders’ platform first choice? Which MetaTrader version is the king of Forex trading? We are answering this question in the latest Quarterly Industry Report (QIR) by Finance Magnates Intelligence.
MetaQuotes Boasts MetTrader 5 Stats. It Has Finally Overgrown MetaTrader 4
On June 7, 2021, MetaQuotes reported that MT5 had become a more popular platform for the first time in history than MT4. More popular among brokers (this is an essential factor, that we will discuss later). The developer reported at the time that the number of lines of MetaTrader 5 code ‘exceeded 7 million’ when the previous version numbered ‘only 2 million’.
Once again, MetaQuotes presented a snippet of its statistics last November when it informed that MT5 was spreading its lead over MT4. The server utilization percentage of the older platform dropped to 36.7%, while it increased to 63.3% for the newer platform. “The MetaTrader 5 trading servers utilization by brokers is increased by a factor of 1.5, compared to the previous platform version ones,” MetaQuotes reported at the time.
“MT4 was primarily built for the forex markets. With its simple interface and ease of use. It is well suited for beginner traders. MT5, on the other hand, can handle
multi-asset
Multi-Asset
Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets.
Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically managed so that funds can continue to generate returns while keeping risk within fixed parameters. What Are Advantages or Disadvantages to Multi-Asset Investments?While multi-asset investing may better distribute risk, it should be known that a hindrance may be exerted upon potential returns.Indeed, multi-asset classes do not always perform as well as most stock funds due to containing other assets such as cash, bonds, or real estate investments. As a result, traders generally tend to gravitate towards target-date mutual funds, target allocation mutual funds, and ETFs.Multi-asset funds that fluctuate with an investor’s time scope are target-date mutual funds. Generally, target-date mutual funds run in congruence with an investor’s retirement age and are composed primarily of equities (85% to 90%) while the remaining is distributed to a money market or fixed income. Target allocation mutual funds are centered around an investor’s risk tolerance and are offered by most mutual fund companies. Equities compose between 20% to 85% of multi-asset funds and may also include international equities and bonds.Trading ETFs through contracts-for-difference (CFD) trading provides traders with a more immediate avenue to multi-asset investing with financial instruments such as precious metals, commodities, and currencies. The diversification that stems from the wake of multi-asset investing helps protect traders against unforeseen market pitfalls and volatility. However, these tend not to perform as effectively as the majority of stock funds in common years due to an allocation of assets.
Read this Term trading, including CFDs, stocks, options and futures. Today, with traders increasingly looking to diversify their investments, multi-asset trading has become an important way for brokers to attract clients,” said Charlotte Day, the Creative Director at Contentworks Agency.
MetaTrader 5 Gains Traction, but MetaTrader 4 Is Still the King of Forex Trading*
While MetaTrader 5 has indeed become the more popular choice among brokers (could it be any other way in a situation where brokers can no longer buy MT4?), turnover statistics among retail
Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term traders suggest that good ol’ MetaTrader 4 continues to dominate the FX/CFD industry.
Over the past few years, it can be seen that some traders have switched to MetaTrader 5. However, statistics still favour the older version of the platform. In the third quarter of 2019, 91.4% of FX volume was generated by MetaTrader 4.
In subsequent quarters this value gradually decreased to reach 74.9% in the fourth quarter of 2021, more than two years later. The downtrend is clearly visible, but at that pace, MT4’s dominance could be unthreatened for a very long time.
*Please note, that the data may not illustrate an accurate or complete picture of the retail trading industry. They are based on information that brokers provide to Finance Magnates Intelligence and which support both platforms.
Notwithstanding the above, MetaQuotes as a platform provider continues to dominate the market, effectively countering the growing competition. Charlotte Day looks at this phenomenon from a marketing perspective. She thinks that MT4/MT5 still remains the most popular traders’ choice due to “the trust that MetaQuotes has been able to garner over the years.”
Do you want to learn more, read the whole analysis and see more in-depth statistics?
Subscribe to our latest Quarterly Industry Report now!
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