1. Head-to-Head Comparison
Let’s start with a quick overview of the key features of MT4 and NinjaTrader. The table below summarizes the main differences between the two platforms.
Feature | MT4 | NinjaTrader |
Cost and licensing | Free to download and use, but some brokers may charge commissions or spreads. | Free to download and use but charges higher commissions and spreads. It also has some paid plans that charge low commissions. |
Supported brokers and instruments | Supports over 1,000 brokers and hundreds of instruments, mainly Forex and CFDs. | Supports over 100 brokers and thousands of instruments, including futures, stocks, options, and crypto. |
User interface and learning curve | Simple and user-friendly interface, easy to learn and use for beginners. | Complex and customizable interface, steep learning curve for beginners, but more suitable for advanced traders. |
Charting tools and technical indicators | Offers over 50 built-in indicators and 9 timeframes, allowing creating and importing custom indicators and scripts. | Offers over 100 built-in indicators, and unlimited timeframes, allowing creating and importing custom indicators and strategies. |
Backtesting and automation capabilities | Supports automated trading with Expert Advisors (EAs) and allows backtesting and optimization of EAs with historical data. | Supports automated trading with Strategies, and allows backtesting, optimization, and forward testing of Strategies with historical and real-time data. |
Community and resources | Has a large and active online community, that offers a wide range of educational resources and tutorials. | Has a smaller but dedicated online community, and offers a variety of educational resources and webinars. |
2. Beginner-Friendly vs. Advanced Options
One of the main factors to consider when choosing a trading platform is the ease of use and the learning curve. Depending on your level of experience and your trading goals, you may prefer a platform that is simple and user-friendly or one that is complex and customizable.
MetaTrader 4 is widely regarded as a beginner-friendly platform, as it has a simple and intuitive interface, a straightforward installation process, and a wide range of educational resources and tutorials. MT4 is designed to be easy to learn and use, even for traders who have no prior knowledge of trading or programming. MT4 also offers a demo account option, which allows traders to practice their skills and test their strategies with virtual money without risking any real funds.
NinjaTrader, on the other hand, is more suitable for advanced traders, as it has a complex and customizable interface, a steep learning curve, and a high level of functionality. NinjaTrader is designed to cater to the needs of professional traders, who require more control and flexibility over their trading operations. NinjaTrader also offers a free trial option, which allows traders to access all the features of the platform, except for live trading, for an unlimited period of time.
Both platforms have features that cater to different levels of experience. For example, MT4 has a simple and effective order entry system, which allows traders to execute trades with just a few clicks. NinjaTrader has a visual ‘point-and-click’ interface for designing custom trading strategies, which allows traders to create and test their own algorithms without the need for programming knowledge. However, both platforms also allow traders to access more advanced features, such as automated trading, custom indicators, and strategy testing, through the use of programming languages (MQL4 for MT4, C# for NinjaTrader).
3. The Automation Capability
Another important factor to consider when choosing a trading platform is the automation capabilities. Automation refers to the ability to execute trades automatically, based on predefined rules and conditions. Automation can help traders to save time, reduce human errors, and enhance their trading performance.
Both MT4 and NinjaTrader support automated trading, but they have different approaches and features. MT4 uses Expert Advisors (EAs), which are programs that can analyze the market and execute trades according to a set of rules. EAs can be created by the user, using the MQL4 programming language, or downloaded from the MT4 marketplace, where thousands of EAs are available for free or for a fee. MT4 also allows traders to backtest and optimize their EAs, using historical data, to evaluate their performance and improve their parameters.
NinjaTrader uses Strategies, which are similar to EAs, but have more functionality and flexibility. Strategies can be created by the user, using the C# programming language, or downloaded from the NinjaTrader ecosystem, where hundreds of strategies are available for free or for a fee. NinjaTrader also allows traders to backtest, optimize, and forward-test their strategies, using historical and real-time data, to evaluate their performance and improve their parameters. Moreover, NinjaTrader has a unique feature called Strategy Analyzer, which allows traders to compare multiple strategies and analyze their results in various ways.
Both platforms have examples of successful automated trading strategies, which have been developed and used by professional traders. For example, MT4 has the London Breakout EA, which exploits the volatility of the London session, and the MACD Sample EA, which uses the popular MACD indicator to generate trading signals. NinjaTrader has the SuperTrend Strategy, which uses the SuperTrend indicator to identify trends and reversals, and the Bollinger Breakout Strategy, which uses the Bollinger Bands indicator to detect breakouts and pullbacks.
4. Charting & Analysis Features
Both MT4 and NinjaTrader offer powerful charting and analysis features that can help traders visualize market movements, identify trends and patterns, and apply technical indicators. However, there are some differences in the quality and quantity of the tools available on each platform.
MT4 offers over 50 built-in technical indicators, such as moving averages, oscillators, and Bollinger Bands, that can be applied to the charts with a few clicks. Traders can also create and import custom indicators, using the MQL4 programming language, or download them from the MT4 marketplace. MT4 supports nine timeframes, ranging from one minute to one month, and allows traders to switch between them easily. MT4 also has a variety of drawing tools, such as trend lines, channels, and Fibonacci retracements, that can be used to mark important levels and zones on the charts.
NinjaTrader offers over 100 built-in technical indicators, such as volume profile, market depth, and Ichimoku clouds, that can be applied to the charts with a few clicks. Traders can also create and import custom indicators, using the C# programming language, or download them from the NinjaTrader ecosystem. NinjaTrader supports unlimited timeframes and allows traders to create their custom timeframes, such as range bars, Renko bars, and tick charts. NinjaTrader also has a variety of drawing tools, such as Gann fans, Andrews pitchforks, and Elliott waves, that can be used to mark important levels and zones on the charts.
Both platforms have advanced analysis features, such as strategy testing, optimization, and performance reporting, that can help traders evaluate and improve their trading systems. However, NinjaTrader has an edge over MT4 in terms of the accuracy and speed of the backtesting and optimization processes, as well as the quality and detail of the performance reports.
5. Cost and Compatibility Considerations
Another important factor to consider when choosing a trading platform is the cost and compatibility of the platform. This includes the licensing fees, the commissions and spreads charged by the brokers, the supported trading instruments, and the availability of educational resources and community support.
MT4 is free to download and use, but some brokers may charge commissions or spreads for the trades executed on the platform. MT4 supports over 1,000 brokers and hundreds of trading instruments, mainly Forex and CFDs. However, some brokers may offer other instruments, such as stocks, futures, and crypto, on the MT4 platform. MT4 has a large and active online community, where traders can share ideas, tips, and strategies, as well as a wide range of educational resources and tutorials, such as manuals, webinars, and video courses.
NinjaTrader is free to download and use for simulation and Live Trading but has some strings attached i.e. you should pay a higher commission if you do not buy a plan. The plan can be purchased monthly ($100/month) or as a one-time purchase ($1,499 lifetime). NinjaTrader supports over 100 brokers and thousands of trading instruments, including futures, stocks, options, and crypto. However, some brokers may charge commissions or fees for the trades executed on the platform. NinjaTrader has a smaller but dedicated online community, where traders can share ideas, tips, and strategies, as well as a variety of educational resources and webinars, such as manuals, guides, and video courses.
6. Advanced Features Breakdown
Both MT4 and NinjaTrader offer advanced features that can enhance your trading experience and performance. These include advanced order types, risk management tools, and automation possibilities. However, there are some differences in the functionality and compatibility of these features on each platform.
MT4 supports four types of orders: market, limit, stop, and stop loss. These orders allow traders to enter and exit the market at their desired price levels, or to protect their positions from adverse market movements. MT4 also allows traders to use trailing stops, which automatically adjust the stop loss level according to the market direction and the trader’s preference. MT4 also supports partial order filling, which means that traders can execute orders in several parts, depending on the market liquidity and the order size.
NinjaTrader supports eight types of orders: market, limit, stop market, stop limit, market if touched, limit if touched, stop loss, and profit target. These orders allow traders to enter and exit the market at their desired price levels, or to protect their positions from adverse market movements. NinjaTrader also allows traders to use trailing stops, which automatically adjust the stop loss level according to the market direction and the trader’s preference. NinjaTrader also supports partial order filling, which means that traders can execute orders in several parts, depending on the market liquidity and the order size.
Both platforms also offer risk management tools, such as position sizing, margin requirements, and account balance monitoring. These tools help traders to control their exposure and leverage, and to avoid overtrading and margin calls. However, NinjaTrader has an edge over MT4 in terms of the accuracy and transparency of the risk management tools, as it provides more detailed and real-time information about the account status and the order execution.
Both platforms also offer automation possibilities, such as the ability to create and run automated trading systems, custom indicators, and scripts. However, there are some differences in the programming languages and the compatibility of these features on each platform. MT4 uses MQL4, a proprietary language based on C++, which is easy to learn and use for beginners, but has some limitations and drawbacks for advanced users. NinjaTrader uses C#, a widely used and powerful language, which is more suitable for advanced users, but has a steeper learning curve for beginners. Moreover, NinjaTrader has a visual ‘point-and-click’ interface for designing custom trading strategies, which allows traders to create and test their algorithms without the need for programming knowledge.
Both platforms also have unique features that cater to specific trading styles or instruments. For example, MT4 has a built-in economic calendar, which displays the upcoming economic events and their impact on the market. NinjaTrader has a market analyzer, which scans the market for trading opportunities based on various criteria and indicators.
7. Trading Instrument Compatibility
Another important factor to consider when choosing a trading platform is the trading instrument compatibility. This refers to the ability of the platform to support different types of financial instruments, such as futures, stocks, options, and crypto. Depending on your trading preferences and goals, you may want to trade a specific instrument or diversify your portfolio with multiple instruments.
MT4 is mainly designed for trading Forex and CFDs, which are the most popular and liquid instruments in the market. However, some brokers may offer other instruments, such as stocks, futures, and crypto, on the MT4 platform. However, the functionality and performance of these instruments may vary depending on the broker and the data feed. Moreover, some features and tools of the MT4 platform may not be fully compatible or optimized for these instruments, such as the timeframes, the indicators, and the order types.
NinjaTrader is designed for trading futures, stocks, options, and crypto, which are the most diverse and versatile instruments in the market. NinjaTrader supports over 100 brokers and thousands of instruments, and provides reliable and fast data feeds and order execution for these instruments. Moreover, NinjaTrader has features and tools that are specifically tailored for these instruments, such as the market depth, the volume profile, and the advanced order types.
Both platforms have examples of traders specializing in certain instruments and their platform of choice. For example, MT4 has many successful Forex traders, such as George Soros, Stanley Druckenmiller, and Bill Lipschutz, who use the MT4 platform to analyze and execute their trades. NinjaTrader has many successful futures traders, such as Richard Dennis, Paul Tudor Jones, and Linda Bradford Raschke, who use the NinjaTrader platform to analyze and execute their trades.
8. Pros and Cons
MetaTrader 4 (MT4) and NinjaTrader are two of the most popular trading platforms among traders of different levels. However, each platform has its strengths and weaknesses, depending on the trader’s experience, preferences, and goals. Here is a summary of the advantages and disadvantages of MT4 and NinjaTrader for beginner, intermediate, and advanced traders: For beginner traders, MT4 may be a better choice, as it is easy to use and install, supports a wide range of brokers, and assets, and offers a large number of built-in technical indicators and tools. MT4 also allows the creation and customization of indicators, scripts, and EAs using MQL language, which can be useful for learning the basics of programming and automated trading. However, if beginner traders prefer a more user-friendly and customizable interface, or want to access advanced charting and analytics features, they may opt for NinjaTrader instead, as long as they are willing to pay a license fee or open a brokerage account to access its full features.
For intermediate traders, the choice between MT4 and NinjaTrader may depend on their preferred asset class, broker, and trading style. If they trade mainly Forex or CFDs, and want to use a variety of brokers and automated trading tools, they may prefer MT4, as it provides a stable and reliable trading environment, supports automated trading through EAs and scripts, and offers a marketplace for trading apps and services. However, if they trade mainly futures or stocks, and want to use advanced charting and analytics features, they may prefer NinjaTrader, as it supports advanced trade management (ATM) technology, market replay and trade simulation features, and a visual ‘point-and-click’ interface for designing custom trading strategies without programming knowledge.
For advanced traders, the choice between MT4 and NinjaTrader may depend on their preferred level of complexity, customization, and optimization of their trading strategies. If they want to develop and test complex trading strategies using a powerful programming language, and use a variety of timeframes, technical analysis tools, and indicators, they may prefer MT4, as it enables the development and testing of complex trading strategies using MQL language, supports a variety of timeframes, and offers a rich library of technical analysis tools and indicators. However, if they want to perform multi-threaded and multi-currency backtesting, and use advanced charting and analytics features, they may prefer NinjaTrader, as it enables the development and testing of complex trading strategies using NinjaScript language, supports multi-threaded and multi-currency backtesting, and offers a comprehensive suite of technical analysis tools and indicators.
9. Community and Resources
For MT4 users, joining online communities and forums can be a great way to learn from other traders, developers, and brokers, who have a wealth of experience and knowledge in using MT4. They can also benefit from the marketplace for trading apps and services, where they can find, buy, sell, or rent EAs, indicators, scripts, and signals that suit their trading needs and preferences. However, they should also be aware of the lack of official support from MetaQuotes, the developer of MT4, and the potential for outdated or irrelevant information due to the discontinuation of MT4 support by MetaQuotes. Therefore, they should always verify the information and feedback they receive from online sources, and use their own judgment and discretion when making trading decisions.
For NinjaTrader users, joining online communities and forums can be a great way to learn from other traders, developers, and brokers, who have a dedicated and supportive attitude towards using NinjaTrader. They can also benefit from the partner ecosystem for trading apps and services, where they can find and connect with third-party providers of EAs, indicators, strategies, and signals that suit their trading needs and preferences. Moreover, they can enjoy the official support from NinjaTrader, the developer of NinjaTrader, and the consistent and high quality of information and feedback they receive from online sources. However, they should also be aware of the lack of the size and diversity of the NinjaTrader community, and the potential for limited or biased information due to the exclusivity of NinjaTrader brokers and assets. Therefore, they should always explore other sources of information and feedback, and use their own judgment and discretion when making trading decisions.