During the past few years, there were lots of rumors about the MetaTrader 5 platform replacing the MetaTrader 4, a platform that we all love so much. This time it seems to be serious after MetaQuotes company announced that MT5 is coming and MetaQuotes will stop supporting the MT4 platform. However, I think MT4 is here to stay for quite a while because many brokers and traders do not like the idea of switching to MT5 and losing all their expensive MT4 trading tools.
Papaevagorou, Head of Sales at MetaQuotes, said “We do not expect to see any developments to come out of MT4 ever again. Given this, MT4 is slowly dying out”.
How will this affect us, EA and indicator users, programmers and signal providers?
Well, first I would like to note that this change is for good. All updates are for good regardless we like them or not.
Yes, I know it can be annoying to update software once and every time, but just think about it. After all, we end up using the best and most popular trading platform out there and this is because MQ did not abandon it and kept updating every month.
So before you start yelling at MQ that they have ruined your day remember that we should be thankful they are improving.
MQ said they will stop supporting the MT4 platform and will not give any updates anymore. But they did not say MT4 will be shut down. This means MT4 will be available for the next few years or so until it will become so old that no one will find it a good choice. By that time we all will be using MT5, or perhaps even MT6, who knows, right? 🙂
However, speaking with other MT4 Apps developers I don’t believe MetaQuotes will stop providing MT4 support because there are hundreds of brokers that have MT4 and paid a huge amount of money for those licenses. I believe brokers even pay monthly fees for the support, so it looks quite silly for MQ to stop these services.
I think if MQ will force brokers to migrate to MT5 they would do a big disservice to everyone including themselves. People do not like MT5 and forcing the switch might create a negative impact on MQ software popularity. Also, imagine how every broker would be forced to invest lots of money and resources into building new software infrastructure with their own custom made system.
So nobody is going to be happy to move to MT5 and see their Expert Advisors and indicators not working there, because they were built to work on MT4 only.
MT4 Apps compatibility with MT5
It is not clear yet if MT4 Apps will become compatible with MT5 or not, but personally, I think there’s a chance that MT4 Apps will not work in MT5 ever and they will need to be re-programmed.
MQL5, a programming language for MT5 is quite different, which means most programmers will treat it as a totally separate software or project. This means if you purchased EA or indicator for MT4 before, you might need to purchase it again for MT5 version if the seller will provide it for MT4 of course.
I would guess not many providers will convert their apps to MT5, which means many EAs and indicators will become obsolete a year or two from now.
MT4 vs MT5
MT5 is improved quite significantly in many areas, especially during the last few months, but obviously, there’s quite a big difference between MT4 and MT5.
Here’s a great comparison of MetaTrader 5 and MetaTrader 4.
MT4 and MT5 have different execution modes, different server architecture, and Balance transaction types. MT5 has more Technical Indicators, more time frames, and unlimited Account & Security Groups.
MT5 is a 64-bit application, which makes it more compatible with modern Windows OS systems and allows it to use computer resources more efficiently. For example, MT5 Strategy Tester is fully Multi-threaded, which makes it much faster, and you can also backtest strategies on multiple currencies and using Real ticks.
MT5 also allows trading not only Forex and CFDs but also Futures, Options, Stock, and Bonds.
Obviously, there are much more improvements and differences between MetaTrader 5 and MetaTrader 4 and you can read more about them here.
I think that there’s quite a lot of room for MT5 to improve and MetaQuotes will continue doing that. Until then we will wait and see how fast the demand for MT5 is growing. But I am already preparing for a big demand of programming work like converting MQL4 scripts to MQL5 and building new apps for MT5 that does not exist yet. After all, there are only about 2000 Apps and indicators for MT5 on MQL5.com Market comparing to MT4, which has 6500+.
So what do you think? Do do you plan to switch to MT5? If not, let me know why you do not want to switch to MT5 by posting a comment.