18th Dec 2020

From the very beginning, MT5 has tried to knock its predecessor off its perch. However, fans of MT4 are extraordinarily loyal, and consequently, MetaTrader 4 has been the reigning champion since 2005.

Today MT4 is seen as the industry standard and the preferred choice of thousands of professional traders around the world. It makes use of multiple expert advisors, is versatile, extremely robust, and secure. MT4 has proven to be user-centric, but it does have a few limitations.

MT5, on the other hand, was not just designed to be the new MT4. It was entirely developed from scratch and therefore was not only meant to be a simple updated version. It provides broader trading options such as stock and commodities trading, provides market depth, and a useful economic calendar.

On the face of it, MT5 is a more convenient platform with superior functionality, but traders have always dragged their heels when making the switch. Usually, most people are all too eager to jump to the latest technology, but with MT5, the level of migration has been underwhelming.

What does this mean for brokers?

Most brokers refuse to switch to MT5 because their traders are also reluctant to make the switch. This is only natural. After all, if it is not broken, there is no need to fix it.

White label MT4 systems are perfectly adequate and, after all these years, still, get the job done perfectly well. Traders are comfortable with the level of functionality, and the high levels of integration ensure MT4’s enduring popularity.

The argument for sticking with the trusted MT4 platform

MT4 has a reputation and reliability that cannot be understated. People are aware of its limitations and enjoy the simple approach to trading it provides. From a brokerage’s point of view, unless your traders ask for a multi-asset platform, there is no need to give them the tools that will likely only muddy the water.

A brokerage will likely be left with the burden of persuading traders to switch in the short term. That can be costly, and the likelihood of losing customers is higher than attracting new ones.

There is a reason MT5 has been around for so long but has failed to reach the number one spot. It really does not provide anything ground-breaking. For a brokerage, the trading platform is one of many tools that make up their ecosystem of services. Their success relies heavily on all of those systems working together to provide a safe and trustworthy environment for their clients whilst remaining reliable and efficient. MT4 does all of that in spades. Therefore, there is no value in making the switch. At least not at the moment.

If you are thinking about starting your own brokerage, do not be too consumed by choosing between these two successful platforms. Most white label providers go with one or the other, and they both work perfectly well. Your real dilemma is finding a partner that you can rely on to help your venture to get off to the best possible start.