Almost 15 years after its launch, MT5 is close to surpassing the MT4 platform in terms of CFD volume. This will mark a symbolic shift, long awaited by the industry.
Since its release in 2005, MetaTrader 4 (MT4) has held the crown as the go-to platform for CFD trading. Its dominance is attributed to its user-friendly interface, extensive library of third-party tools, and exceptional reliability. Traders appreciate MT4’s robust charting capabilities, algorithmic trading features via Expert Advisors (EAs), and a wealth of educational resources available online. Brokers, too, have favored MT4 for its ease of integration and widespread familiarity among clients.
These factors collectively made MT4 a dominating presence in the industry, cementing its position as the leading platform for years.
The Younger Brother: MT5
MetaTrader 5 (MT5), launched in 2010, was designed to be a more advanced alternative to MT4, providing additional features such as multi-asset trading, an improved order management system, and more technical indicators. Unlike MT4, which primarily focuses on forex and CFDs, MT5 supports a broader range of assets, including stocks and futures. While MT5 offers a more modern and flexible trading environment, its adoption was initially slow, largely because traders and brokers were deeply entrenched in the MT4 ecosystem.
The lack of backward compatibility between MT4 and MT5 further discouraged migration, as many users didn’t want to lose access to their custom indicators and EAs.
A Shift in the Landscape
In recent years, MT5 has gained momentum, driven by technological advancements, regulatory requirements, and a growing need for diversification in trading instruments. As brokers update their offerings to meet modern standards, they have increasingly promoted MT5. Meanwhile, MetaQuotes, the developer of both platforms, has gradually reduced support for MT4, nudging users toward the newer platform. The rising adoption of MT5 suggests we may be nearing a pivotal moment in this rivalry.
Yet, retail CFD traders have still been favoring the MT4 platform. Whether it is a factor of them being used to the old platform, or other factors, MT4 even today still holds dominance, at least in terms of volume size. However, the days of MT4 dominance seem to be numbered, and we are getting close to a point in time where MT5 takes over the lead with higher volumes.
Finance Magnates Intelligence collects and publishes, in its Intelligence reports, data on MT4/5 usage. We can clearly see that trends are speeding up. In Q4 2023, MT4 retained a commanding 65.3% market share, while MT5 held 34.7%. However, this gap has been narrowing steadily. By Q3 2024, MT4’s dominance had further eroded to 55.8%, while MT5 climbed to 44.2%. These figures illustrate a clear shift as traders and brokers increasingly embrace MT5.
Will the Change Happen in 2025?
The rivalry between MT4 and MT5 reflects the evolution of trading technology and the changing needs of the financial markets. While MT4 remains the preferred choice for many, the rapid growth of MT5 signals a broader shift toward more modern and versatile trading platforms.
Looking at the data, we can assume that in a year from now, MT4 should lose another 10 percentage points versus MT5. This means that in 2025, we will see the final victory of MT5 in a long rivalry. Will all CFD brokers be prepared? They should be.
Almost 15 years after its launch, MT5 is close to surpassing the MT4 platform in terms of CFD volume. This will mark a symbolic shift, long awaited by the industry.
Since its release in 2005, MetaTrader 4 (MT4) has held the crown as the go-to platform for CFD trading. Its dominance is attributed to its user-friendly interface, extensive library of third-party tools, and exceptional reliability. Traders appreciate MT4’s robust charting capabilities, algorithmic trading features via Expert Advisors (EAs), and a wealth of educational resources available online. Brokers, too, have favored MT4 for its ease of integration and widespread familiarity among clients.
These factors collectively made MT4 a dominating presence in the industry, cementing its position as the leading platform for years.
The Younger Brother: MT5
MetaTrader 5 (MT5), launched in 2010, was designed to be a more advanced alternative to MT4, providing additional features such as multi-asset trading, an improved order management system, and more technical indicators. Unlike MT4, which primarily focuses on forex and CFDs, MT5 supports a broader range of assets, including stocks and futures. While MT5 offers a more modern and flexible trading environment, its adoption was initially slow, largely because traders and brokers were deeply entrenched in the MT4 ecosystem.
The lack of backward compatibility between MT4 and MT5 further discouraged migration, as many users didn’t want to lose access to their custom indicators and EAs.
A Shift in the Landscape
In recent years, MT5 has gained momentum, driven by technological advancements, regulatory requirements, and a growing need for diversification in trading instruments. As brokers update their offerings to meet modern standards, they have increasingly promoted MT5. Meanwhile, MetaQuotes, the developer of both platforms, has gradually reduced support for MT4, nudging users toward the newer platform. The rising adoption of MT5 suggests we may be nearing a pivotal moment in this rivalry.
Yet, retail CFD traders have still been favoring the MT4 platform. Whether it is a factor of them being used to the old platform, or other factors, MT4 even today still holds dominance, at least in terms of volume size. However, the days of MT4 dominance seem to be numbered, and we are getting close to a point in time where MT5 takes over the lead with higher volumes.
Finance Magnates Intelligence collects and publishes, in its Intelligence reports, data on MT4/5 usage. We can clearly see that trends are speeding up. In Q4 2023, MT4 retained a commanding 65.3% market share, while MT5 held 34.7%. However, this gap has been narrowing steadily. By Q3 2024, MT4’s dominance had further eroded to 55.8%, while MT5 climbed to 44.2%. These figures illustrate a clear shift as traders and brokers increasingly embrace MT5.
Will the Change Happen in 2025?
The rivalry between MT4 and MT5 reflects the evolution of trading technology and the changing needs of the financial markets. While MT4 remains the preferred choice for many, the rapid growth of MT5 signals a broader shift toward more modern and versatile trading platforms.
Looking at the data, we can assume that in a year from now, MT4 should lose another 10 percentage points versus MT5. This means that in 2025, we will see the final victory of MT5 in a long rivalry. Will all CFD brokers be prepared? They should be.
This post is originally published on FINANCEMAGNATES.
