The MetaTrader platforms are undoubtedly the most popular platforms in forex trading. These platforms are the quintessential trading tools and they perfectly manifest how effective trading can be when you have the right tools.
MT4 vs MT5 trading platforms have been on the market for a considerable amount of time and they both have an immense number of users. MT4 is the older of the two have been on the market since 2005. MT5, on the other hand, has barely been around for a decade but it has seen its popularity go up within a short time.
Both provide pioneering automated trading systems with expert advisors. However, they each serve a very different function and, contrary to popular belief, MT5 is not an upgrade of MT4. MT4 was specifically built for forex traders, whereas MT5 was designed to provide traders with access to CFDs, stocks, and futures.
10 DIFFERENCES: MT4 Vs MT 5 Trading Platform
MT4: Installation is simple and straightforward.
MetaTrader 5: Installation is not as simple when compared to MT4. The manufacturer’s demo trading server (METAQUOTE) is a default in the opening account phase of the installation. An option to add a new trading server from MetaTrader 5 for a demo account is also included.
- Fundamental Analysis (news trading)
MT4: Forex Economic Calendar is not included in the news tab.
MetaTrader 5: The platform has an inbuilt Forex economic calendar tab with features like a news event, schedule, impact, forecast, earlier events, e.t.c.
MT4: There are nine (9) timeframes. There are limitations to the number of charts that can be opened at the same time.
MetaTrader 5: There are 21 timeframes ranging from 1 minute to 1 month, and an unlimited number of charts. One hundred charts can be opened at the same time without limitations.
MT4: The market utility tab is not integrated into the platform. You have to visit MQL4.com in order to buy any of its product in their marketplace.
MetaTrader 5: The market utility tab is built inside the platform. You can directly buy Forex products through the market tab.
MT4: It has only two (2) market orders, and four (4) pending orders.
MetaTrader 5: More order types are included in the platform. There are two (2) market orders, six (6) pending orders, and two (2) stop orders.
- Indicators & Analytical Objects
MT4: There are 30 inbuilt indicators pre-installed on the MT4 platform.
MetaTrader 5: There are 38 inbuilt indicators pre-installed on MetaTrader 5 platform. There are 22 analytical objects, and 46 graphical objects added to the platform.
MT4: The interface is easier to navigate when compared to MetaTrader 5. The one-click trading feature and the drag and drop functionality is included in build 500 version only.
MetaTrader 5: There are slight differences in the platform’s interface. A search box has been included on the platform as well as a details tab on the market watch window.
- Expert Advisor
MT4: The MQL code editor and strategy tester are the main utilities used for expert advisor design. Expert advisors are programmed with MQL programming language, and they are faster to compile. It is not possible to transfer expert advisor codes from MT4 to MetaTrader 5. Therefore expert advisors designed in MT4 would not work on MetaTrader 5.
MetaTrader 5: It comes with more utilities for expert advisor design. The strategy tester utility has been upgraded, and a strategy tester agent manager for remote optimization of expert advisors was also added. Expert advisors are designed with C++, and they are slower to compile due to the dynamics of C++ programming language.
MT4: Most brokers deliver their services on MT4.
MetaTrader 5: Fewer brokers deliver their services through MetaTrader 5 when compared to brokers who deliver their services on MT4.
- Trading (Hedging, FIFO, e.t.c.)
MT4: There are no restrictions on any trading method. However, broker regulations are implemented on their proprietary MT4 platforms.
MetaTrader 5: It does not support hedging of trades, and it also implements the FIFO policy by default.
So Which Is Better?
Well, that depends on your preferences. That’s just like asking if plain black coffee is better than an iced caramel macchiato with whipped cream and an extra shot of espresso!
If you believe that “less is more” and you’d rather stick to the essentials of straight up forex trading, then you might be better off using the more straightforward MT4 platform. On the other hand, if you like the flashy new features and a jam-packed menu of options, MT5 might have just what you need.
In Conclusion, Forex Trading has great potentials for success and at the same time high possibilities of losing funds. Success in Forex requires the best resources and skills. Determine which platform is right for you with this handy.