MetaTrader 4 or MetaTrader 5: Advantages and Disadvantages
Traders have long favoured MetaQuotes Software Corp.’s trading platforms throughout the globe. MT 4 and MT 5 are two of the most popular products on the market. Although many people assume that MetaTrader 5 is only an upgraded version of the previous platform, the terminals have a significant difference
In contrast to MT4, MT5 is an all-in-one tool that can be used to trade both currencies and the stock market. There are some distinctions between MetaTrader5 and MetaTrader4 because of their different application capabilities. Let’s look into what is the difference between MetaTrader 4 and MetaTrader 5.
Dive into MetaTrader 4 functionality
MetaTrader 4’s ability to successfully combine functionality, lightness, usability and a highly customizable user interface has made it famous. The platform is easy to use and doesn’t include a lot of superfluous panels, buttons, or information.
What you need to know about MT4:
- The platform is designed for forex trading—financial instruments – CFD on currencies, stocks, stock indices, assets of commodity markets, cryptocurrencies.
- MetaTrader 4 is a single-threaded platform for 32-bit operating systems. It will also work on 64-bit operating systems, but compatibility problems may arise.
- The platform supports over 30 languages.
The marketing and technical assistance given by MetaQuotes is another factor in MetaTrader 4’s success. The platform’s code is continually being updated and improved by the firm. In addition, brokers choose Metatrader trading platform over other platforms because of the low licensing fee.
MT4 has several benefits, including:
- Functionality. The software has three order execution options, nine order types, 30 built-in technical indicators, and nine timeframes to choose from when placing orders.
- The MQL4 language Scripts, advisors, and indicators may all be customized on the platform. MetaEditor may be used to construct them.
- Tester availability is a crucial consideration. Make use of back-testing to evaluate the performance of human and automated trading techniques on historical quotations. Except for MT5, no other platform has this feature.
- Traders’ community support. It is one of the biggest trading forums where you may replicate signals and debate techniques and request indicators, Expert Advisors, and other code to be created. Another benefit of the platform is the MQL4 language’s popularity and ease of use for creating custom trading systems.
- Security. It utilizes a 128-bit encryption scheme based on an algorithm with a digital signature to safeguard the data sent between traders and servers. However, a Trojan virus can’t compromise the platform since it is impenetrable from the outside.
MetaTrader 5 details
Despite all the new features and enhancements, traders did not embrace MT5 as readily as MT4. Thus, developers supported both versions. Even though MT 4 is still the most widely utilized Forex trading platform.
Technical analysis, testing, and order execution have been improved in MetaTrader 5 by its creators.
MT5 vs MT4:
- The Market’s Depths. Compared to MetaTrader 4, it has become a full-fledged trading tool in the newer version. To make the stock market visible, the developers increased volumes. For example, the Depth of Market in MT5 provides information about buyers’ and sellers’ closest bids, along with price movement and importance at the selected quotations.
- Order tracking software. Metatrader 5 now has a netting mechanism. All open positions on a single asset are shown in a single order on the chart. It saves time since you don’t have to keep track of many transactions.
- Tester. Multicurrency support was introduced to the MT5 tester, and back-test statistics were expanded. The inclusion of forwarding testing in MT5 has improved the accuracy of testing results and optimization of an Expert Advisor or indicator. MetaTrader 5 runs the same tests as MetaTrader 4, but just for a fraction of the time (20 minutes instead of 5 minutes).
- Timeframes. Non-standard periods have been introduced to MetaTrader 5. This issue was fixed in Metatrader 4 by adding an extra script.
- Technical analysis. The number of fundamental indicators has increased. This feature was not available in MT4. Pending Buy Stop Limit orders and Pending Sell Stop Limit orders are also in place.
Which is Better MetaTrader 4 or 5?
A crucial function is provided by the two versions of MT4 and MT5. Both of these systems make technical analysis and the usage of unique trading approaches simply. In addition, a wide range of PC and mobile apps are available for EA and robot assistance.
For experienced currency traders, this platform may be the ideal option since it is compatible with more than 1,000 forex brokers. However, in terms of automated trading, MT 4 is preferred over MT 5.
But suppose you want to increase your technical analysis and research when trading non-forex CFDs. In that case, MT5 may be the best MetaTrader platform alternative to MT4. Since there are more indicators and drawing tools and more execution choices and order types, you will be able to trade more effectively.