MetaTrader 4 (MT4) has been around for a long time. It was first released in 2005, making the software 20 years old. And while it has received constant updates, the current version, in look and feel at least, hasn’t changed much.
Some traders rightfully ask, “How is it possible that a 20-year-old program hasn’t been surpassed at some point?” And that’s a valid question. After all, it’s highly unlikely that MT4 is so functionally unique that its role in the markets is irreplaceable.
In reality, it’s not, but we’ll touch on that more soon. However, MT4’s unique positioning in the market means it has multiple factors working in its favour. The combination of these factors is what keeps the platform aloft and what makes it seem untouchable.
So, in this article, we’ll look into these factors. Beyond simply understanding market positioning, this may help traders see why MT4 may be the right choice, even if it may seem dated.
MT4 functionality
There’s no denying that MetaTrader 4 is a highly functional platform. It has numerous indicators and timeframes, one-click trading, an intuitive asset list, and sensible account data tabs, creating a solid baseline experience for newer traders.
On top of that, it can also support more complex trading procedures, like backtesting and algo trading via its Expert Advisors (EAs) feature.
If it feels like that can go for any other platform as well, that’s because it can. Modern trading platforms, at least the prominent ones, are fairly close to each other in function. Of course, they all have their strengths and weaknesses, but traders who don’t get deep into the tech are unlikely to notice.
Worse yet, MetaTrader 4 definitely feels somewhat dated to use. The functionality is all there, but the UI shows its age. On top of that, some navigation may not be in line with modern standards. As such, for newer users, it may not provide such a solid experience.
Yet, despite all of that, MetaTrader 4 remains the most prominent แพลตฟอร์มการเทรด. And if the answer isn’t in the base functionality, that means we need to look for it elsewhere.
Community
An MT4 platform with loyal fans
Since MetaTrader 4 has been the most prominent platform for nearly twenty years, it’s bound to have some fans. Due to how massively the platform is spread, MT4’s community is pretty huge as well.
Why does community matter in trading platforms?
But why would this matter? At the end of the day, some word-of-mouth promotion might happen. But realistically, one trader gains nothing from another using the same platform. That would be the truth, at least, if MetaTrader 4 didn’t have community-based features.
The power of custom programming
Community is important for MetaTrader 4 due to its custom programming language. It allows users to create custom tools for the software, ranging from indicators to EAs. Of course, this requires quite a bit of effort, but the small fraction of traders that do create these tools can post them publicly and make them available to everyone.
Why MT4 stands out among competitors
Again, this is something other platforms can do as well, so why is MetaTrader 4 the standout? Well, its age and prominence play a role here.
Since it was a relative frontrunner in the online finance sphere, MT4 grabbed traders’ attention early. If a tool creator learns a custom programming language for a platform, they are less likely to switch to a new one and start over.
A vast library of trading tools
Not only that, but MetaTrader 4’s time on the market has allowed these custom tools to amass. This means that the custom tool library has become quite large and that it’s much more versatile than those of competitors.
Support from a massive online community
And that’s not even mentioning the advantages of a large community in modern times where the internet is so prominent. There are plenty of resources new users can utilise to help them better understand the platform. If they ever get confused or lost, the solution is most likely just a search away.
More than just tools
This solution and the custom tools make MT4’s community quite a significant advantage. However, that alone wouldn’t be enough to position MetaTrader 4 where it is now and keep it there.
MT4 availability
MetaTrader 4’s status as the most popular platform means that it’s the most widely adopted as well. CFD brokers provide traders with what they want, and since most are familiar with MT4, they want to keep using it. In that way, it’s sort of a circular explanation, but that’s how the market works sometimes.
Making things even more convoluted is the fact that MT4 is available everywhere making traders more likely to want to learn it. Ideally as a trader, you don’t want your brokerage choices to be limited by the platform you are using.
Let’s say a trader learns cTrader, another fairly popular platform, but way less prominent than MT4. The trader’s pool of available brokerages is much smaller than it would be with MetaTrader 4. In other words, they may have to either choose a sub-par brokerage or relearn a platform.
With MT4, that risk is far less pronounced. And because of that, traders are more likely to choose it over other platforms.
Comfort
Building on the previous point, traders who have learned a single platform often want to stay on that platform. Learning a platform is a time-consuming process, and traders don’t want to do it every time they switch brokerages.
It’s a matter of comfort and convenience, but also a matter of expediency. Simply put, if you already know a platform, you’ll be able to access markets sooner.
This is especially noticeable for tech-involved traders who use some of the platform’s more complex features. For more basic traders, it’s a matter of relearning UI elements and navigation, which is more of a hassle than truly difficult.
However, for algo traders, strategy creators, or highly analytical traders who rely on backtesting, the issue is much more noticeable.
Those using more advanced features not only have a much more difficult task in relearning the platform, but may not find the same features. This is when feature differences become more noticeable, and where they may become detrimental to a trader’s experience.
Altogether, it’s less risky and simpler to just stay with the same platform. It cuts down on the time needed to trade and doesn’t require investing energy into relearning something most traders aren’t that interested in.
Conclusion
MetaTrader 4’s popularity is warranted by it being an excellent trading software. While others have caught up, there’s no denying that it has pioneered many features and, in many ways, shaped today’s forex trading landscape. However, that’s not the only thing it has going for it.
The experience and its long-standing status as an industry leader create something of a cycle where MetaTrader 4 gets more popular because it’s already popular. It’s easier to learn because there are more resources and more brokerages available.
In turn, people learn it, it becomes their preferred platform, and more forex brokers implement it because people like it. It goes like that in circles and is likely to continue if another tool doesn’t revolutionise the niche.
However, don’t let MT4’s intuitiveness and popularity fool you into thinking it’s too simple. The fact is that none of it would be possible if MetaTrader 4 wasn’t a tool that allowed forex traders, both beginners and professionals, to easily and comfortably go through their routines.
Disclaimer: This material is for general informational and educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.
