metaquotes-vs-spotware

Meta Trader and cTrader a Comparison

2,000 3,000 Words – Written by a real trader!

Since MetaTrader 4 was first launched into the trading environment back in 2005, it’s developer Metaquotes has dominated the retail foreign exchange (FX) trading landscape ever since. Its dominance has been founded on simple software design and incremental software improvements that have delivered improved functionality almost year-on-year since 2005.
MetaTrader has outshone all other retail trading platforms and has even encroached into the realms of other asset classes such as CFD’s and futures.

Despite MetaTrader 4 now being 11 years old at the time of writing, it is still by far the most used trading platform by retail FX traders. Over the past few years, a number of other software companies have launched their own trading platforms hoping to challenge the dominance of the MetaTrader 4 and 5 platforms. One of the most formidable challengers is Spotware’s cTrader platform which has become a serious contender.

In this article we take a look at how the cTrader platform compares to both MetaTrader 4 and 5 platforms, and discuss whether it’s worth making the move over to the cTrader platform.
To relay our perceptions of the two trading platforms, we have decided to structure the comparison according to four major aspects:

1. Charting and Indicators
2. Automated Trading & Back-Testing
3. Depth of Market Functionality
4. Availability

1. Charting and Indicators

MetaTrader

The MetaTrader 4 & 5 platforms (MT4 and MT5 for short) are favoured by many traders because of the professional look and feel, as well as the extensive range of professional features that come as standard. The platform supports a wide range of indicators which can be customised by the user and easily added and removed from the charts bundled with the software.
Both MT4 and its recent successor MT5, provide a full set of charting tools and features and both allow users access to a wide spectrum of third-party add-ons in the form of scripts, expert advisors (trading robots) and customised chart analysis capability via MQL.

What are the differences between MetaTrader 4 and 5?

Bear in mind that both versions of MetaTrader receive regular updates automatically delivered by Metaquotes to all users, brokers and their white-label partners directly through the platform.
As a result, the set of features for both platforms is regularly changing and users should consult their broker or visit various online self-help pages at www.mql.com for the latest updates to MT4 and MT5 features. As a handy tip, make you have noted your platform version number, which can be found in the Help>About menu — when scouring forums or looking for information online.
Some of the major differences are:

mt4-and-mt5

 

cTrader

cTrader developed by Spotware came onto the trading scene only in 2011. Within 5 years this ‘MetaTrader killer’ has taken a significant chunk out of the retail trading market to the extent that several brokers now offer both cTrader and MetaTrader to clients.

Understandably, cTrader has tried to improve upon MetaTrader’s faults given its late release date by comparison. The platform looks and feels sleeker, and is noticeably more modern in terms of both aesthetic looks and functionality. cTrader also sports more order types and a sleeker and more intuitive platform navigation.

The interface is clean and there is not a great deal of noticeable difference between cTrader and other retail platforms including MetaTrader. This is especially the case for beginners. The same features such as charts, trade logging, account management tools, back testing and technical indicators are all available.

 


 

2. Automated Trading & Back-Testing

Part of the reason why the MetaTrader platforms have enjoyed such a prolonged period of dominance is the support they provide for those wanting to automatically trade the financial markets using EA’s. However, the cTrader package supports both automated trading and strategy testing, giving traders a real alternative to MetaTrader.

MetaTrader

MT4 and MT5 support Expert Advisors, or automated algorithms, that trade on the clients behalf. These EA’s can even be bought, sold and exchanged like commodities in and of themselves.
Metatrader scripts are written in MQL4 or MQL5 respectively, with the unique MetaTrader scripting language borrowing heavily from the C family of programming languages.
This means that MQL4/5 are very powerful and can be used to create quite sophisticated trading programs. While the power of the MQL4/5 languages is quite impressive, learning to program sophisticated trading systems is something that will likely prove very challenging to those that haven’t had previous programming experience.

NOTE: MT4 and MT5 use different programming languages — MT4 uses MQL4, MT5 uses MQL 5.

This means that all EA’s, scripts and custom indicators coded in MQL for use on MT4 will not be portable/transferable to MT5. Everything must be re-written.

mtplatform

There’ is currently no smooth way to convert any of the features from one platform to another, thereby conjuring up the wrath of the online trading community, quick to voice its displeasure with MetaQuotes.

Even those who have experience with C++ like programming languages are likely to find writing their own Expert Advisors somewhat challenging, though experienced programmers should be able to pick up the language quite quickly using the documentation provided by MetaQuotes.

Thankfully, it possible to build Expert Advisors without learning MQL4/5 as there are a number of tools which allow you to build EA’s without having any knowledge of programing.

Typically, these options limit the complexity of the trading programs you can build, though it is still possible to build sophisticated trading algorithms (Read : How to Build An Expert Advior ). There are also a number of companies and programmers offering their services to build Expert Advisors to custom specifications — for a price.

There are also a large number of commercial Expert Advisors being sold by providers who claim that their programs can help traders make money from the Forex market. It is crucial to conduct sufficient due diligence of any such company or trading signals vendor, as the Forex industry has unfortunately attracted unsavoury and unscrupulous companies not amenable to best commercial practise.

Very often, the commercial EA’s being advertised do not live up to their marketing hype and after some initial small gains, there are eventually large losses that cripple the trading account. (Read: Commercial Expert Advisors ).

Once you have created or bought an Expert Advisor it is possible to test the historical performance of EA using the platforms Strategy Tester. This allows you to test how an Expert Advisor ‘could have performed’ over a specified historic period, with the majority of brokerages providing traders with a wealth of historic data to test EA’s on. The quality of the back-test depends on the data used and the parameters set out by the trader, with a bit of fine tuning it is possible to perform highly accurate back-tests. Do note however that back-testing is an art, not a science — so users must tread carefully when carrying out tests, and even more importantly, when interpreting the results. Daily Tip

 cTrader

ctraderplatformLike its main rival, the cTrader platform also comes with support for automated trading and back-testing.

Spotware supports algorithmic and automated trading via it’s cAlgo platform, widely available to anyone with a cTrader account. Trading robots for the cTrader platform are written in C#, a popular object orientated programming language with a large number of dedicated programmers. While C# is a powerful programming language, it may not be easy for the newcomer to pick up straight away and unlike MetaTrader, there are currently no tools available for those who want to build custom cAlgo programs from scratch.

The cAlgo platform does allow users to modify existing indicators and programs in a way which makes it relatively easy for those not well versed in programming to create useful trading tools.

As with the MetaTrader platform it is also possible to utilise a growing developer community online for help in creating a custom cAlgo robot according to any desired specifications. However, given the cTrader’s relative novelty there are currently many fewer programmers working on cAlgo’s than MetaTrader EA’s.

Some third-party tools have been developed allowing EA’s built for MT4 and MT5 to be converted to the cTrader platform, although these are still being developed and have not been perfected. For a reliable EA or cAlgo robot, it remains the standard practise to rewrite the code from scratch.

cTrader allows back-testing features using historical data which is expandable at the user’s behest. in a very similar way to the MetaTrader platform. Again this is a relatively easy and with some small tweaks it’s possible to generate accurate back-tests to establish whether you want to proceed with forward testing of your trading robots.

 

Winner: MetaTrader probably has a slight edge over cTrader when it comes to automated trading only due to the fact that there is a much more established community which focuses on the creation of EA’s for MT4 and MT5. There is no reason why cTrader couldn’t become a legitimate challenger in this regard should the platform become more popular.

 

3. Depth of Market Functionality

One feature that has invaded the retail trading industry, is one that has been borrowed from the Futures markets: Depth of Market.

Depth of market provides information as to how many orders are being queued at any particular price. By seeing how many orders there are, and where — traders are able to attain a supreme edge over other traders that are unaware of prevailing order placement in that market.

Depth of Market provides traders with information about the amount of buy and sell orders at each particular price level. This information is useful for traders who want scalp, feel out the market and place large ticket orders. Increasingly, traders are demanding platforms which allow them to see the Depth of Market.

MetaTrader

metatraderdom

MT4 was first released with no inbuilt Depth of Market tool, which meant that traders using a STP/ECN brokerage could not see any Depth of Market (DOM) data unless the brokerage made it available or provided third-party plug-in. This is something which really lets down the MetaTrader 4 platform.

MetaTrader 5 became the first platform from MetaQuotes to introduce Depth of Market functionality as standard. The platform allows traders to open a ladder which shows the amount of liquidity at each price level, and allows traders to place orders at different levels. This improvement was welcomed by many users of the platform, though it has to be said that MetaTrader’s DOM functionality is pretty rudimentary and simple. It is a far cry from professional-grade depth of market typically found on Futures trading platforms such as Ninja Trader.

cTrader

cTrader is much more sophisticated when it comes to Depth of Market functionality, with the platform giving its users the opportunity to see the full range of executable prices from a brokers liquidity providers. The VWAP view allows traders to get a feel of what price they will get for large orders which might not be entirely filled at one price. Under testing, cTrader didn’t have any problems managing partial fills although this is largely broker-dependent. Overall, the Depth of Market functionality included within the cTrader platform is pretty advanced and is likely to suit all trading styles.

 

Winner: When it comes to Depth of Market functionality, cTrader is the clear winner. MetaTrader 4 comes with no inbuilt support for DOM data and must rely on third party tools, with only a few brokerages offering solutions which allow their clients to see DOM data when using the MT4 platform. MetaTrader 5 has introduced Depth of Market functionality but is still not being widely used by many brokers. One last point is that given the decentralised nature of the FX market combined with its large size and millions of daily market participants — DOM data is made largely redundant or inconsequential, especially for small retail traders.

 4. Availability

 MetaTrader

he MetaTrader platform is very widely available. In fact, a number of brokerages offer the platform as their only option to traders, with the platform also being available in mobile formats allowing traders to manage their positions while on the move.

This makes it easy to find a brokerage who offers either MT4 or MT5, and MT4 remains by far the most widely-used. This is due to the fact that not all brokerages have picked up licences for MT5 which costs considerably more and is not a major selling point for many retail FX traders. One huge gripe has been the disabling of hedging capability on MT5 despite this being a requirement only in the US.

The vast majority of brokers will offer MT4/MT5 even if they have their own proprietary platform operating alongside it. MT4 has been a hit with retail traders, and retail brokerages have been forced to take notice. Brokers that do have their own proprietary platform will typically provide a ‘bridge’ for its platform to interface with MetaTrader, as part of a value-add service for clients and for financial reporting/risk management requirements.

cTrader

Currently, the cTrader platform from Spotware is not widely available but an increasing number of brokerages are beginning to offer its clientele the opportunity to use cTrader. The platform is particularly popular with ECN/STP brokerages due to the Depth of Market functionality built into the cTrader offering. While not all brokerages offer the platform a number of well known brokerages such as FxPro, Admiral Markets, Liquid Markets and others offer the platform to their customers.

 

Winner: The MetaTrader platform is the most widely available trading platform with almost every major retail FX brokerage offering the platform to clients. Brokers such as XM.com and eToro among others, have led the field in developing added-value after-market tools that plugin into MT4 and transform from it from a plain vanilla platform, into a feature-rich trading cockpit perfect for retail traders. The cTrader platform isn’t as widely available as MetaTrader, but traders can still pick from a large range of Forex brokers that offer cTrader.

 

 Comparison Summary – cTrader VS Metatrader – Bottom Line

It may just depend on personal preference when it comes to choosing which platform to opt for. Users focused on EAs may be drawn to MT4 due to its wider availability, more online resources and larger online community. Other traders will be drawn to cTrader by the greater ability to make modifications to the interface and more advanced order options. Trial periods with each one are a must for anyone considering live trading with MT4/MT5 or cTrader (or other trading platform for that matter). Asking which trading platform is better than the rest is like asking which car is the best. The right answer is the platform/car that does the job you need it to.

For newbie traders, both MT4 and cTrader will carry out all their requirements, so the differences are largely cosmetic and logistical in terms of programming language and availability of a diverse development community.

Here’s our summary of all the important features that may help you decide:

ctrader-v-mt4

 

There is in-fact very little to separate these two platforms, with both boasting impressive functionality and performance in live trading conditions.However, the wider availability of the MetaTrader platform is likely to mean that the majority of development when it comes to automated trading strategies, commonly known as robots, is likely to be carried out with MetaTrader in mind as opposed to cTrader.

On the other hand, the cTrader platform is likely to appeal to those looking for a rich depth of market experience that could be especially appealing to short-term scalpers.

cTrader is a genuine alternative to MetaTrader, but MetaTrader doesn’t necessarily need an alternative unless you are very picky.

Either way, you won’t really know or understand the difference until you try them both:

  • OPEN MT4 DEMO ACCOUNT — LIVE ACCOUNT
  • OPEN MT 5 DEMO ACCOUNT — LIVE ACCOUNT
  • OPEN cTrader DEMO ACCOUNT — LIVE ACCOUNT

 

Additional read about Metatrader VS cTrader:

Fintech

Catering to varying and shifting needs, trading platforms are constantly being modified and provided with new additions and tweaks.

Foreign exchange brokers are utilising the latest advances in IT, and have helped to generate a new industry in itself — Fintech — financial technology that streamlines how buyers and sellers come together; and saving every counterparty cash in the process.

Social Media

The latest batch of updates do not focus on improving charting or order execution.

Instead, modern Fintech companies are helping platforms such as MT4 and cTrader make strides into a new dawn of trading which includes social media interaction, multi-device trading in real-time and crowd-sourcing applications that make trading an entirely different experience to what it was, perhaps even just 15 years ago.

Features that newbie traders have welcomed most include cloud-stored workspaces. With cloud-based services becoming increasingly prolific and widely used, both cTrader and MT4 now offer users the ability to save multiple workspace in their entirety in the ‘cloud’, and capable of being retrieved at any time on any device. In 2016, this includes mobile phones, tablets, PC’s and Mac’s.

This particular feature is most useful for traders who access their account on multiple devices or trade from multiple locations.

Self-development

One of the most important aspects for traders is the ability to accurately measure, track and analyse their own trading performance. Both MT4 and cTrader provide a rich set of tools to help traders with their own self-analysis and risk management.

Research shows that the most successful traders are those who do extensive self-analysis and evaluation. So although these platforms provide the tools traders need, traders must want to use them effectively which always take time, effort and dedication. These traits are often very difficult to collate together at the best of times — doing so in a trading environment oozing with multiple other factors that could cause sudden panic and stress, becomes a truly challenging endeavour.

9 thoughts on “MetaTrader vs cTrader

  1. Nice to see comparisons of platforms where there is room for improvements and healthy competition.

    My opinion on meta trader versus ctrader having programmed in both and used both (2 years in metatrader4, and 3 months in ctrader), previously coming from a C programming background should have me biased toward mt4, [pardon my ranting tone below]
    BUT for back testing strengths, and also for programming your own automated trading, ctrader is so far ahead of mt4 I cant see how you can say there isnt much difference in it. For example I have to totally disagree with you when youve said: “with a bit of fine tuning [mt4] it is possible to perform highly accurate back-tests”.
    Reason I dont agree is the most typical broker set up of mt4 is only giving bid data in backtests, which then you are left to guess what spread your broker had, and will vary with different EAs and different times of the day, additionally most mt4 brokers give you a tiny 2 – 6 weeks of high resolution back testing data. This giving anywhere between moderate to VERY big differences in profit from live trading on the same broker.
    there are ways around these limitations but even most programmers dont know how, or cant find the time to get a price feed from another source, let alone a end user, if you do want to work around this you have to update that source tick or 1m data whenever you need more backtesting.
    ctrader includes the bid and ask prices on tick data about 10 months.
    Maybe you havent made many EAs or done much back testing so Im being a bit harsh on my criticism, but there is in my opion a massive difference in this area, with ctrader the clear winner. Example is if I want to program a new a EA in mt4, and same in ctrader, since I used to code in C I should be biased toward mt4 which is basically C, but since it will take literally a third of the time to do it in C# in ctrader, I cant see many reasons why I would bother with mt4 unless I had to (and didnt mind nodding off a few dozen times in the process), yes really a third of the time!.
    Then time spent backtesting, using the genetic algorithm in ctrader saves so much hassle, unless youve really tried them both you cant say there isnt a big advantage there at least time saving, if not finding settings you didnt even think would work.

    Anyway, at least Ive left a starting comment, and am happy to hear other experiences with use of these two platforms.

  2. MT4/MT5 is old outdated piece of shit software.

    Ctrader is new revolutionized program to trade, its soo much better and nicer.

    MT4/MT5 is like Mirc old junk

  3. thanks , looks like ctrader is more modernized version of the fx tool. But from what I can see, metatrader might be coded in c, while ctrader is coded in C# and with a .net clickonce starter, it has to verify the file version on each start which is pain in the ass. From the comment above, and I think I will still prefer ctrader over mt4 since it has a good dom view and c# might be easier to deal with than c like mql

    1. Really nice explanation about the ins and outs of things I don’t know much about!
      Thank you le.

      As a note – your blog is showing a security/ virus warning, so I had to remove the link from your comment. Cheer

  4. The biggest win of cTrader is its combo of desktop and HTML5 web platform making it accessible from all browsers and OS. Yes the web still lack some features compared to desktop but Mac support wise its thousand times better than MT4

  5. Nobody mentioned the huge open source community of MT4/MT5 providing tons of leading edge indicators and EAs. This will be the biggest problem of cTrader like it was already for Tradestation. Despite some(many?) technical advantages of cTrader MT4/MT5 already created an extremely solid standing in particular with this open source developer community. Here we have the old video standard problem VHS vs Betamax. Despite Betamax was technically significantly better than VHS, VHS won due to its huge market momentum it had compared to Betamax.

    1. The reason why VHS one the battle is because Sony which owned Betamax didn’t allow the porn companies to use Betamax so VHS become the customers choice. People used other search engines before Google but Google became the winner.

  6. …I see the only option to overcome my described roadblock if cTrader would also provide at least a runtime environment for mql4 (and mql5) software or even better an mql4/mql5 editor. The offered converters mql4/mql5 to C++ for cTrader are not enough in my eyes. There was a reason that Metaquotes implemented mql4/mql5 and didn’t take C/C++: There are many already implemented trading functions making programming in mql4/mql5 very easy, despite e.g. lousy array management, missing radarscreen (like in Tradestation), or medium execution times.

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