MT4 vs MT5: How to Choose the Right Forex Trading Platform?

MetaQuotes Software Corp.’s trading platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been popular with traders throughout the globe for many years. MT4 is well-known for its capabilities in currency trading, while MT5 has gained popularity in recent years as an all-in-one tool that can be used to trade currencies and stocks. Though they share some similarities, traders should be aware of some important distinctions between MT4 and MT5. In this article, we’ll take a look at what those differences are.

Which platform is right for you? That depends on your trading style and needs. To help you decide, let’s take a look at the advantages and disadvantages of each platform.

If you’re looking for a reliable and user-friendly platform to trade in the Forex market, MetaTrader 4 is a great option. MT4 is known for its combination of functionality and lightness and its highly customizable user interface. This makes it easy to use and reduces the chances of you becoming overwhelmed with information or features.

What you should know about MetaTrader 4:

• The platform supports over 30 languages.
• The platform is intended for forex trading and financial instruments such as CFDs on currencies, stocks, commodities, and cryptocurrencies.
• MetaTrader 4 is a 32-bit operating system single-threaded platform. It will function on 64-bit operating systems as well. However, there may be compatibility issues.

MetaQuotes’ marketing and technical assistance have been a driving force in the success of the MetaTrader trading platform. The firm continually updates and improves the platform’s code, making it a favorite among brokers. In addition, the low licensing fee makes Metatrader an attractive option for traders.

Benefits

MT4 has many great features and benefits. Some of these are:

• The software gives you three order execution options, nine order types, 30 built-in technical indicators, and nine timeframes to pick from.
• It employs a 128-bit encryption approach based on an algorithm with a digital signature to protect data exchanged between traders and servers. On the other hand, a Trojan virus will not be able to compromise the platform because it is impenetrable externally.
• Support from the traders’ community. It’s one of the most popular trading communities, where you may copy signals, discuss tactics, and request indicators, Expert Advisors, and other codes. The popularity and ease of use of the MQL4 language for constructing custom trading systems is another advantage of the platform.
• Scripts, advisors, and indicators in the MQL4 language can all be changed on the platform with the use MetaEditor.

Although MT5 has many new features and enhancements, traders did not embrace it as readily as MT4. Consequently, developers continued to support both versions. Even though MT4 is still the most widely utilized Forex trading platform, MT5 is gaining popularity. Its enhanced functionality and capabilities make it an attractive option for traders. Consequently, more brokers are offering it as a trading platform.

MT5 features or MT4 vs. MT5

1. Market depth

In comparison to MetaTrader 4, the newest version has evolved into a full-fledged trading instrument. The developers raised the stock market volume to make it more noticeable. In MT5, for example, the Depth of Market feature displays the closest bids of buyers and sellers, as well as price movement and relevance at the selected quotations.

2. Technical analysis

There has been an increase in the number of fundamental indicators. In MT4, this feature was not available. There are also pending Buy Stop Limit orders and Pending Sell Stop Limit orders.

3. Order Tracking

Netting is currently available in Metatrader 5. All open positions on a single asset are displayed in a single order on the chart. It saves time because there are fewer transactions to keep track of.

4. Tester

MetaTrader 5 performs the same tests as MetaTrader 4, but in a much shorter amount of time. The MT5 tester now supports multi currency, and back-test statistics have been improved. Forwarding testing has increased the accuracy of testing findings as well as the optimization of an Expert Advisor or indication in MT5.

5. Timeframes

MetaTrader 5 now supports non-standard time periods. An extra script was added to Metatrader 4 to resolve this issue.

Which is Better?

MetaTrader 4 and 5 are both incredibly popular trading platforms, but which one is better? Both offer a wide range of features and tools for technical analysis and trading and a variety of apps that can help with automation.

Are you an experienced currency trader? If so, you may find the MT 5 platform to be ideal, as it is compatible with more than 1,000 Forex brokers. However, when it comes to automated trading, MT4 still wins out over MT5.

MT5 may be a better option if you want to trade CFDs other than Forex. It offers more indicators and drawing tools and additional execution choices and order types, making it easier to execute your trades effectively.