MT4 vs MT5: principal differences
Brokers need to connect a trading platform to enter the Forex market. The community considers about 10 solutions as widespread and functional platforms
Meanwhile, the MT4 trading solution still heads the ranking despite the fact that the 5th version of MetaTrader came to the map in 2010.
The statistics show that 34.4% of Forex brokers prefer to leverage MetaTrader 4, while the market part of MT5 is 14.3%. What are the key differences between the two products launched by MetaQuotes?
Programming languages and interface
The two latest versions of the MetaTrader platform are based upon different programming languages. The MT4 version leverages the MQL4 language, while the 5th version is grounded on the MQL5. MetaTrader 5 is marked by object-focused logic and a well-developed testing system for checking the efficiency of advisers.
Nevertheless, the MT5 interface is close to the previous version of MetaTrader. The new version obtained the market depth to monitor up-to-date quotes and transaction volumes.
Analytical functionality and available timeframes
Both platforms have a wide set of analytical instruments onboard; meanwhile, developers had to implement new features, making the latest version more functional.
This said, MetaTrader 5 has got 8 more inbuilt indicators and Elliott wave forecast option, while the chart modes are the same for both versions. While using MT5, traders are able to apply up to 100 indicators simultaneously. If necessary, additional indicators are easily uploaded from the library.
The latest version’s MetaEditor enables users to construct their own advisors and indicators, having no deep programming skills. Furthermore, traders may use Strategy Tester to analyze their own instruments’ efficiency. Advisors developed for MT4 are not compatible with the latest version of MetaTrader, and this factor is named among the principal cons of the 5th version.
As for the timeframes, the MT4 integration opens access to 10 timeframes, while the updated solution offers 21 timeframes.
Types or suggested orders
The previous version of MetaTrader contains 4 pending orders, while the MT5 solution obtained Buy Stop Limit and Sell Stop Limit orders. Those pending orders enable traders to open deals higher or lower the indicated price. Partial fill of placed orders is possible. MetaTrader 5 enables traders to open a deal in one click from a trading chart directly.
The 5th version contains the Trade Alerts option to analyze deals of other traders and follow their strategies. This version is completed with the online economic calendar and recent news concerning a certain asset.
The difference between MetaTrader 4 and 5 includes the markets where platforms are implemented. The MT4 solution is developed for the Forex market exceptionally, while the latest version is compatible with other markets (stocks, futures, etc.).
What is the best way to implement these trading platforms?
MetaTrader 5 allows traders to get more instruments and useful features; this is why such a platform is more professional. Meanwhile, the vast majority of traders understand MT4 as an entirely enough solution for beneficial trading.
When you need to implement a trading platform, two options are possible: licensed expensive solution or White Label option. The cost of MT4 and MT5 is about $100 000 and $200 000 respectively. Such numbers are unbelievably giant for newcomer brokers. This is why B2Broker offers convenient and favourably pricing White Label Forex solutions. Our managers are ready to help you choose the most suitable trading platform and start to conquer the Forex market.