Traders and investors throughout the globe have long taken advantage of currency swings and market volatility to enhance their riches via forex trading.
Since its inception, Forex trading has been enormously popular throughout Africa, making the continent a hotbed for both foreign Forex brokers and African investors looking for new avenues of revenue generation. There are around 1.3 million forex dealers in Africa, with South Africa and Nigeria accounting for the bulk of them.
Only a tiny percentage of people worldwide participate in forex trading, despite its recent growth. In reality, just 5.5% of the global forex market is dominated by African dealers. As a result, several foreign exchange brokers have set up business in the country. When it comes to trading forex, forex platforms are some of the most important things to acquire. As a result, many Forex brokers furnish traders with a list of trading software. Some of the most popular trading tools among the African Forex traders are MT4 and MT5. In this article, we’ll provide you with more information on why African Forex investors prefer to use MT4 rather than MT5.
What Are The Main Differences Between MT4 And MT5?
In terms of the sorts of traders they attract, the MT4 and MT5 platforms are very different. For forex traders, MT4 has all the capabilities and functionality they need.
CFD, stock, and futures trading are just a few of the products that may be traded with MT5. Consequently, the breadth of characteristics it offers may not be relevant to every trader; nevertheless, if you deal in numerous asset classes, it may be more beneficial to your trading objectives. When trading forex with an MT5 embraced broker, shown in the MT5 EA list, keep in mind that the features and tools used to examine forex charts aren’t as comprehensive, therefore you’ll probably have to give up performance to do so. You may find it tough to leave your trading station while you’re in the middle of a transaction or a setup that’s right on the buy/sell line. Traders may access their trading platforms 24 hours a day using the mobile versions of MT4 and MT5 available on iOS and Android-powered smartphones and tablets. It’s possible to buy and sell financial products and keep track of your account status as well as see and interact with charts and a complete range of trading orders on mobile devices.
As a result of MT4’s impact on the Forex broker industry, 90% of traders now use it, and the vast majority of indicators and tools are built for it.
A separate market, such as equities, commodities, or futures, is targeted because of the ability to connect to a centralized market, but the Forex market has a huge number of players giving liquidity at fairly comparable pricing, resulting in a decentralized market structure. On the other hand, a centralized market regulates the trading of commodities and shares.
Trading Forex and CFDs with MetaQuotes Software Corp. is possible with a wide range of features. Additional features for skilled traders are available via MT4’s trading and analytical tools. Forex and CFD traders can find a wealth of resources here. Algorithmic trading is a significant feature of MT4. Traders who use automated trading systems, or algorithmic traders, are referred to as algorithmic traders.
EAs (Expert Advisors) use a predefined algorithm to trade on the market. It is possible to develop an adviser or robot of any complexity thanks to the MQL4 IDE embedded within the platform. There is a built-in app shop called “MetaTrader Market” and a free library called “Code Base” for traders who are unfamiliar with MQL4. A wide range of technical indicators, scripts, and EAs may be found there, as well as a wealth of information.
Traders should be able to develop trading robots or Expert Advisors considerably more easily than they do use MQ4’s code. Using a variety of different inputs, trading robots (often referred to as EAs) may execute various trading strategies automatically. So, traders have access to the most accurate market analyses and projections available to them.
Both systems come preloaded with a robust collection of analytical tools, but engineers had to add additional functionality to make the most recent version even more useful.
So far as built-in indicators go, MetaTrader 5 offers an additional eight and an Elliott wave prediction option. MT5 traders may use up to 100 indicators at the same time. If required, new indicators may be downloaded from the library and installed on your system as needed.
MetaEditor, a new feature in the newest edition, allows users to create their own advisers and indicators without any programming knowledge. Strategy Tester may also be used to evaluate the effectiveness of a trader’s own instruments. One of the biggest drawbacks of MetaTrader 5 is the incompatibility of MT4 advisors with the most recent version.
MT5 has a lot of new features, although some traders may prefer the simplicity of MT4 over the more advanced capabilities of MT5.
MT4 is a no-brainer whether you’re new to trading or just curious about trading forex. However, if you’re a more sophisticated user who can benefit from the extra features of MT5, this platform is well worth a look.
