If you trade foreign exchange, you’ve undoubtedly heard of MetaTrader 4 and MetaTrader 5. These applications are among the most popular trading platforms for traders and advisers when assessing positions and taking action. Visit MultiBank Group
While the similarities between MT4 and MT5 in their titles may lead some to believe that MT5 is just an upgraded version of MT4, the fact is that the two systems cater to quite different types of traders.
What is MetaTrader 4?
Among online trading platforms, MetaTrader 4 has the largest user base among Forex professionals. It debuted in 2005 and has since provided millions of people with simple, streamlined access to the global financial markets.
Traders of all skill levels find MT4 useful because of its flexibility, ease of use, and adaptability. Further, it provides sophisticated trading tools that facilitate individual trading techniques.
Advantages Of Using MetaTrader 4
Secured
Similarly, a 128-bit encryption key protects sensitive data sent between the server and the trader in MT4. The MT4 server has a digital RSA certificate as well.
Appropriate for Programmers
Programmers may create their algorithms using the MT4 platform. Developers may create their indicators and trading robots with the use of SQL. More importantly, these capabilities empower traders to tailor automated trading methods to their needs.
Technology Supporting Multiple Languages
Users of MetaTrader4 may be found in a wide variety of nations. This software is quite easy to use thanks to the several language choices it provides. Traders have the option of switching the platform’s language at any moment. If we had been able to read the charts and interact with the system in our language, things would have gone much more smoothly. Likewise, mistakes and confusing messages printed in our language would be easy to see and decipher.
Superior Graphing Capabilities
Learn about the Forex market by studying the price action of currency pairings. Trading professionals may make more informed decisions using MT4’s charting capabilities.
Get Market Data in Real Time
It enables currency traders to get live currency quotations and make deals in realtime. From this screen, traders may see contract size, margin percentage, and currency information. This platform’s Depth of Market function provides traders with information about current events. The Depth of the Market shows the number of buy and sell orders for each currency pair at each price level.
Multiple Market Opportunities
Given that it is a forex-related platform, the trader can access various markets, including futures, commodities, and stocks. They can now evaluate any market and do business there with ease.
What is MetaTrader 5?
It was in 2010 when the widespread release of MetaTrader 5, a trading platform that supports many asset classes, took place. Although MT5 is more powerful and convenient than MT4, it does not replace it since the two platforms serve distinct purposes. MT5 expands trading opportunities across almost all markets, from foreign exchange (FX) to equities, indices, commodities, and digital currencies.
Technical and fundamental analysis, trading signals, algorithmic and copy trading, and trading robots are just some of the features available in MT5 that may help traders make profitable trades.
Advantages Of Using MetaTrader 5
In-Constructed Reporting
You can rapidly assess your trading behaviour using MT5’s sophisticated reports. That is to say, these reports help keep tabs on the beginning and ending balances of deposits. Z-score, Profit Factor, and GHPR are only a few examples of useful metrics.
Market-Friendly Trading Environment
Stockholders and dealers of today are fortunate in that they may turn to internet platforms and contribution businesses for portfolio maintenance. Currently, MT5 is among the most advanced systems available. It enables incorporating several trading features optimised for real-time access to the forex market. With this information, you’ll be better able to make a calculated choice.
Pleasantly Simple to Use
There is a notable improvement due to the platform’s design, which has big icons and a clean desktop. The primary distinction is that real-time marketing decisions are more important than ever in today’s uncertain industry.
What Sets MT4 and MT5 Apart from One Another?
Even though the two most notable distinctions between MT4 and MT5 have previously been discussed, there are still a few more that are important to highlight.
In contrast to its predecessor, MetaTrader 4, MQL5 is the name of the programming language utilised by MetaTrader 5. There is no longer a distinction between platforms since MetaQuotes added this functionality to MQL4 in 2014. However, it is possible that in the future, if the language is improved, MetaQuotes will not extend any changes into MQL4 or MQL5.
There is no compatibility with older systems. Metatrader 5 is not compatible with Metatrader 4 programs.
Metatrader 5 does have two significant programming benefits over Metatrader 4. A trader who wants to conduct a substantial number of backtests will like the software’s first feature, its back-testing features, allowing you to test programmed trading methods much more quicker. All of these together may significantly shorten the time it takes to do a back exam.
Basic Functions in MT4 and M5 Compared
Indicators of Technology
Thirty built-in technical indicators are available in MT4. If that isn’t enough for you, the Code Base also provides access to over 2,000 more free, custom indicators. Additionally, the Market on MT4 offers over 700 premium hands. This is more than sufficient for doing market research.
On the other hand, MT5 comes with a total of 38 technical indicators. Like MT4, you may download thousands of paid and free custom indicators from the Market.
Instruments For Making Graphs
To forecast potential price changes, MT4 offers 31 graphical elements, including lines, channels, the Gann and Fibonacci tools, shapes, and arrows.
MT5 has 44 different graphical elements, such as various forms and channels, and drawing tools like Gann, Fibonacci, and Elliott.
Timeframes
Clients may use timeframes, which provide charts for a predetermined period, to assess trade. Common time frames include 2 hours, 6 hours, 8 hours, and 12 hours. Compared to MT4, which only comes with 9, MT5 has 21 different timelines.
Design Elements
These include text labels, graphs, bitmaps, arrows, etc. Comparatively, MT5 has roughly 44 Graphical items, whereas MT4 offers just 31. You may use them to highlight the graph’s key patterns, regions, and thresholds.
Schedule of Events
The MT4 platform lacks a dependable Economic Calendar. However, if you utilise a third-party calendar, you won’t miss any important financial announcements. For instance, FBS maintains its own Economic Calendar to track the market-moving macroeconomic developments.
The Economic Calendar in MT5 provides timely and relevant data on upcoming macroeconomic events. Traders may use this to keep tabs on any news relating to the economy that might impact the value of their holdings. If you want to improve your trading strategies, use the Economic Calendar.
Traders should be aware that although MT5 offers certain advantages over MT4, it may still be too complex for those starting. MT4 might prove to be a reliable and user-friendly tool if you’re just getting started in the trading world. Consequently, MT4 becomes the logical pick in this case. As a result, MT4 has surpassed MT5 as the industry standard. In a nutshell, traders are constantly looking for a stable, user-friendly, and crash-free platform. Expert and broker feedback indicate that MetaTrader4 is a great option.
