MetaTrader 4 and 5: Why I Don't Use Them
MetaTrader 4 and MetaTrader 5 are the platforms forex and CFD brokers give their clients. They look like an exchange platform, but they're a window onto one broker's offering: prices, volume and order execution come from the broker, not from a central exchange. That's why I don't use them.
What it is
MetaTrader is developed by MetaQuotes, which sells licences to brokers. The client gets charts, indicators, automated trading (Expert Advisors in the MQL language) and a marketplace of ready-made robots and signals.
MT4 was the forex standard for years. MT5 added more instruments and timeframes and, at some brokers, access to exchange-traded instruments with an order book.
Why I avoid it
- Tick volume. In MetaTrader, for forex and CFDs, volume is the number of price changes at the broker, not the number of contracts. I describe this in my article on volume in forex.
- One broker instead of a market. With CFDs the broker is your counterparty and the price comes from its sources. You can't see the whole market's order book.
- An ecosystem of robots and signals. A whole industry selling EAs, martingale and grid systems and signals has grown up around MetaTrader.
What to use instead
If you want to trade indices, currencies or commodities on a real market, there are CME futures, with a single order book and trade-by-trade data. I compare the two in my article Exchange or CFD broker.
Other platforms
- Sierra Chart I use it
- ATAS Recommended
- NinjaTrader 8 I use it
- TradingView Single purpose
- Bloomberg Terminal I don't need it
- The full list of platforms with my rating
Frequently asked questions
Is MetaTrader an exchange?
No. It's a platform the broker gives its clients. For forex and CFDs, prices and order execution come from that broker.
Does MetaTrader show real volume?
For forex and CFDs, no: it's tick volume, the number of price changes at the broker.
MT4 or MT5?
MT5 has more features and is still being developed; MT4 is older. For me the choice doesn't matter, because the problem is the CFD model, not the software version.
Educational content and my personal opinion, not an investment recommendation. Features, pricing and availability change: check the current information with the vendor before deciding. Product names belong to their owners.