Forex Trading Platform Types – Metatrader 4, 5 & Webtrader

Forex Trading Platform Types

Forex Trading platforms

A forex trading platform is an online software through which investors can access the foreign exchange market. Trading platforms can be used to open, close, and manage trades from devices of one’s choice.

They also have a plethora of tools, timeframes, and indicators to enable you to monitor and analyze the market in real-time. There are several trading platforms on which one can carry out forex trading. We shall quickly consider the Metatrader 4, Metatrader 5, and the Webtrader.

Differences Between Metatrader 4 and Metatrader 5

The Metatrader 4 and 5 are both great platforms to trade forex. They have some areas of similarities; however, some features set them apart. What are those differences?

MT4, which was released on 1 July 2005, is a simple electronic trading platform that is easy to use and is mostly used for the retail forex market. The MT5, on the other hand, was released on 5 June 2010, is a more advanced, all-in-one trading platform used for multi-asset purposes.

Algorithm trading:

Algorithm trading involves the use of an automated trading system, usually known as ‘trading robots’.

  • Metatrader 4 is run on MetaQuote Language 4 (MQL4), while MetaTrader 5 is built on MetaQuote Language 5 (MQL5).
  • MQL4 is designed to help develop trading programs based on the order system, while the MQL5 is intended to implement a positional system.
  • It is easier to use MT5 because it is more efficient than MT4. The MT4 needs various functions to be able to complete each trading operation.
  • Systems coded with MQL4 are incompatible with MQL5 programs.


  • Both MT4 and MT5 offer mobile versions through android and iOS powered Smartphones to enable traders to perform their trade from anywhere and anytime.
  • The mobile versions offer the following functionality: popular analytical tools, a full set of trading orders, interactive quote charts, buy and sell financial instruments, and ability to monitor your account’s status.


  • Users of both platforms can customize the interface to fit their trading needs.
  • Both platforms have an alert feature with audio and the newest financial news.
  • MT5 provides the depth of market (DOM), thereby enabling clients to view where pricing of bids and offers take place across markets.
  • MT4 has 30 technical indicators, while the MT5 has 38.
  • MT4 offers 31 graphical objects, but MT5 offers 44.
  • MT5 offers more drawing tools, including more Elliot drawing tools and Fibonacci studies.
  • MT4 has interactive charts loaded with nine timeframes, while MT5 has 21.
  • While MT5 has an economic calendar, MT4 has not.

Trading orders:

  • MT4 and MT5 have three execution modes – instant execution, execution on request, and execution by market. However, MT5 has an extra, which is ‘exchange execution’.
  • MT4 has four modes of execution –buy limit, buy stop, sell limit, and sell stop. However, MT5 has six, with the extra two as buy/sell stop limit.
  • MT4 is a 32-bit, mono-threaded platform, while MT5 is a 64-bit, multi-threaded platform with faster speed.
  • MT4 is intended to be used for CFD instruments, while MT5 is for multi-asset trading, including futures, stocks, and FX trading instruments.
  • While MT4 only permits hedging, MT5 gives room for both hedging and netting.
  • You can transfer funds between accounts on MT5 but cannot on MT4.
  • MT5 has an embedded MQL5 community chat functionality.

Differences Between Metatrader 4 and Webtrader

Having seen the differences between MT4 and MT5, you can easily pick out the features of MT4. Comparing MT4 with Webtrader, we shall only look at the features of Webtrader:

  • Webtrader is a 100% web-based platform from which you can remotely access your MT4.
  • It is a modern HTML5 application which does not need extra browser plug-ins or add-ons to function.
  • Traders do not require registering on the MQL5 community before they can use the web terminal.
  • Information transmitted on the platform is secure and safe to use.
  • Webtrader is completely synchronized with the downloadable versions of MT4.
  • It is used for monitoring the prices of financial instruments and forex rates.