MT4 VS MT5 – How To Choose The Right One For You?
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both popular trading platforms that traders and brokers use worldwide. They are both developed by the Russian software company MetaQuotes and offer a range of tools for trading forex, stocks, commodities, and other financial instruments.
Introduction – MT4 VS MT5
Released in 2005, MetaTrader 4 has become the industry standard for forex trading and continues to be widely used today. It offers a wide range of charting and analysis tools and the ability to automate trading strategies using custom scripts (known as Expert Advisors). MT4 also supports multiple languages, making it a global platform.
On the other hand, MetaTrader 5 was released in 2010. Being an updated version of the MT4 platform, it offers many improvements over its predecessor, including enhanced charting and analysis tools, a more significant number of supported financial instruments, and a profound backtesting system for automated trading strategies. MT5 is also better in terms of execution speed and stability.
Those focused on forex trading and comfortable with the range of tools offered by MT4 may find it well suited to trading needs. On the other hand, clients looking to access a broader range of financial instruments or wishing to switch to a more advanced platform for automated trading may prefer to use MT5.
Ultimately, MT4 and MT5 are powerful and flexible trading platforms that have every feature required to satisfy the needs of both professional traders and newbies.
MetaTrader 4 (MT4) Features
MetaTrader 4 (MT4) is reliable and user-friendly and comes power-packed with various features. Some of them include the following:
- Advanced Charting Capabilities: MT4 provides traders with a comprehensive set of charting tools, including multiple chart types, technical indicators, and custom time frames. This allows traders to analyze the markets and make informed trading decisions.
- Customization Options: MT4 is highly customizable, allowing traders to add indicators, scripts, and custom expert advisors (EAs) to meet their specific needs.
- Multiple Order Types: MT4 supports various order types, including market, limit, stop, and trailing stop orders, giving traders greater flexibility in executing their trades.
- Automated Trading Strategies: MT4 includes a built-in strategy tester, which enables traders to test and optimize their automated trading strategies.
- Third-Party Plugins: There are thousands of third-party plugins available for MT4, which can enhance the platform’s functionality and help traders better manage their trades.
In addition to these features, MT4 is also widely supported by Forex brokers, which makes it easy for traders to open and manage multiple trading accounts. The platform is also accessible on various devices, including desktops, laptops, and mobile devices.
Pros & Cons Of Using MT4
Here we list some pros and cons of using the MetaTrader 4 (MT4).
- User-friendly interface
- Customization options
- Advanced charting capabilities
- Widely supported by Forex brokers
- A large community of users
- Limited market analysis tools
- Fewer supported asset classes
- Outdated technology
- Security concerns
- Lack of integration with other financial tools
MetaTrader 5 (MT5) Features
MetaTrader 5 (MT5) is a powerful trading platform developed by MetaQuotes Software Corporation. Like its predecessor – MT4, it is the second most widely used in the forex market and offers a range of functionalities. Some of the other key features of MT5 include:
- Multiple Chart Types: MT5 gives traders a wide variety of advanced charting options. This facilitates market analysis and, thus, better trading judgments.
- Technical Indicators: Like MT4, MT5 is extremely modifiable, so traders may tailor it to their needs by installing their own set of indicators, scripts, and expert advisors (EAs).
- User-Defined Time Frames: Traders have more options while using MT5, thanks to the platform’s support for 21-time frames. Clients can view the performance of their favorite tradable assets under different time horizons.
- Strategy Tester: The strategy tester in MT5 allows users to put their automated trading methods through their paces and find the ones that perform best.
- Trading tools: Traders can get a full picture of the markets thanks to MT5’s comprehensive suite of analysis tools, which includes an economic calendar and a market depth function.
Pros & Cons Of Using MT5
Here we list some pros and cons of using the MetaTrader 5 (MT5).
- Advanced market analysis tools
- Expanded support for multiple asset classes
- Improved automation features
- Enhanced security features
- In-depth market data
- Steep learning curve
- Limited broker support
- Fewer third-party plugins are available
- Higher cost
- Compatibility issues
MT4 VS MT5 Comparison
In this section, we will take a comprehensive look at MetaTrader 5 VS 4 and compare their features, benefits, and drawbacks. The choice between MetaTrader 4 (MT4) and MetaTrader 5 (MT5) depends on a trader’s specific needs and trading goals. Here are some factors to consider when choosing between the two platforms:
- Asset classes: MT4 is primarily designed for forex trading, while MT5 has expanded support for other asset classes such as stocks, futures, and options. If a trader wants to trade a variety of asset classes, MT5 may be the better choice.
- Charting capabilities: Both platforms offer advanced charting capabilities, but MT5 has a more extensive range of chart types and time frames. If a trader is looking for advanced charting tools, MT5 might be the right call.
- Trading strategies: MT4 is widely known for its customization options, including the ability to add custom indicators, scripts, and expert advisors (EAs). If a trader is looking for a platform to implement and automate their trading strategies, MT4 is worth considering.
- Market analysis: MT5 includes additional market analysis tools, such as the economic calendar and market depth, unavailable on MT4. If a trader is looking for a platform with more market analysis tools, MT5 may be a better choice.
- Availability: MT4 is supported by most Forex brokers and is accessible on various devices, including desktops, laptops, and mobile devices. MT5 is gradually becoming more widely available, but it may not yet be supported by all brokers.
Final Thoughts – MetaTrader 4 VS 5
In conclusion, selecting between MT4 or MT5 for beginners depends on a trader’s preferences. MT4 is a well-established platform with a user-friendly interface and advanced charting capabilities. It is suitable for beginner traders and is supported by most Forex brokers. On the other hand, MT5 is a newer platform with advanced market analysis tools and support for multiple asset classes. It is suitable for experienced traders who need advanced features and are looking to trade in multiple markets.
Frequently Asked Questions – MT4 VS MT5
Which platform is more secure, MT4 VS MT5?
Both MT4 and MT5 have robust security measures in place, but traders should always take steps to protect their accounts from hacking and security threats. MT4 may be more vulnerable to security threats due to its widespread use, but MT5 has the latest security features.
Does MT4 support automated trading strategies?
Yes! MT4 supports automated trading strategies, including custom expert advisors (EAs), scripts, and third-party plugins.
Can I use MT5 with my existing broker?
It depends on your broker. Some brokers may only support MT4, while others offer both MT4 and MT5. You should check with your broker to see which platform they support.
What are the order execution differences in MetaTrader 4 VS MetaTrader 5?
MT5 offers more advanced capabilities, such as partial order filling and additional order types, while MT4 has a more straightforward approach to order execution. However, some traders prefer the simplicity of MT4’s execution, while others prefer the added flexibility of MT5’s execution capabilities.
Is MT5 available on mobile devices?
Yes, MT5 is available on mobile devices, including smartphones and tablets. This allows traders to access the platform and manage their trades while on the go.