Contract For Difference is traded using a trading platform. This can be a mobile application or a program installed on the computer that offers different prices, transaction histories, trading and so much more. Most of the time, trading platforms also have features, analytical tools, and indicators useful for trading. Nowadays, the most popular trading platforms for CFD are MetaTrader 5 (MT5) and MetaTrader 4 (MT4).
MetaTrader 4 (MT4)
For the past 15 years, MT4 is known to be the standard of online trading platforms. Ever since its release in 2005 by MetaQuotes Software Corporation, MT4 immediately became the most offered trading platform by CFD and Forex brokers. Some of its good characteristics are responsiveness, usability, and ability to get customized. MT4 isn’t just available for laptop and desktop computers. It is also available on Android and iOS devices allowing convenience and trading on the go. MT4 even has a web version known as ‘WebTerminal’.
Adding to the familiar charts that we mostly see in a trading platform are the four kinds of pending orders, 30 built-in technical indicators, and nine timeframes that allow traders to analyze price movement from a minute to one month. But what sets apart MT4 from other trading platforms that were released the same years with MT4 is it’s being user-friendly. From the setting, moving stops, opening, and closing orders, and other common actions in trading, convenience is highly considered. For the stops, it can be moved simply by dragging it across the chart or by right-clicking the order at the terminal before you select the ‘modify or delete the order.’ MT4 also has a very convenient one-click trading which is an upgrade released in March 2013. During those times, this upgrade was considered revolutionary and one of a kind.
After all these years, there might be other trading platforms more state-of-the-art and boosting with the latest features and tools, MT4 remains the favorite among CFD traders and Forex traders. But more and more traders are switching to the sister trading platform of MT4, the MetaTrader 5.
If you check the MT5 desktop version, you will see an upgraded version of MT4. But when traders started to shift from MT4 to MT5, they have found some fascinating features not available in MT4. If MT4 targets Forex traders, MT5 has a wider market beyond Forex. It now deals with indices and shares.
In the desktop version of this trading platform, more timeframes are introduced. If MT4 only has nine timeframes, MT5 offers 21. There are also more built-in indicators and an additional two pending orders. Another important addition to this trading platform is the Depth of Market and the built-in Economic calendar.
MT4 mobile and MT5 mobile also have huge differences and this includes the history features which were broken down into orders, positions, and deals. It is found in MT5. More importantly, MT5 Android users are allowed to check two charts together, a feature that isn’t available in MetaTrader 4 mobile as it is the first trading platform to have such a feature.