MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the best trading platforms that a trader could ever have. These trading platforms can be downloaded into your mobile devices so you can trade on the go. Its developer, MetaQuotes Software Corporation, has been developing different trading software since 2000. But the most popular among them is the MT4 and MT5. If these platforms are exceptional in their own ways, which of them is the best?
Why are there two versions of MetaTrader?
MT4 first came to the industry in 2005. After 5 years, in 2010, the MT5 was released. In a matter of 5 years, the trading industry greatly changed and the needs of every trader evolved so much. But the developer of MT4 refused to upgrade the programming language of MT4 but instead, they created a new trading platform and a new programming language.
Because MT5 has a different programming language as with MT4, you cannot easily convert the indicators you have in MT4 into the MT5. So, if you think that you already have enough effective robots in MT4 and got profits from it, it is much better if you continue to stick to MT4 instead of migrating to MT5.
Basic Features of MetaTrader 4 and MetaTrader 5
Can’t decide which trading platform to use? Here is the comparison of the basic features of MT4 and MT5.
Both MT4 and MT5 are user-friendly. But MT4 is more likely for beginner traders and also customizable according to your trading needs. As for the MT5, it is the newer trading platform which has updated features and added capabilities like ability to trade futures and stocks. Aside from that, there are more timeframes and services in MT5 than MT4.
There’s a huge difference in the number of timeframes that MT4 and MT5 has to offer. In MT4, there are 9 timeframes while MT5 has 21 timeframes. If you are a novice trader, you might find it to be less of a deal. But as you go along with trading, you will venture into other trading strategies that might need more timeframes.
Graphical objects are another remarkable feature of MT4 and MT5. In MT4, they have 31 items and in MT5, they have 44 items.
Technical indicators are very helpful in determining the right entry and exit points. In MT, there are 38 indicators while MT4 only has 30 indicators. Although MT4 has a lower number of indicators, both trading platforms are still efficient to use for technical analysis.
With the programming language used in MT5, the MQL5, you do not have to code that much. This is unlike the MT4 which requires you to code constantly.
After creating your Expert Advisor, it would be too risky if you use it instantly in the real, live market. Therefore, you must do backtesting first. Both MT4 and MT5 offer backtesting.
MT4 offers 4 types of pending orders. They are the Sell Limit, the Sell Stop, the Buy Stop, and the Buy Limit. For MetaTrader 5, there are 6 types of pending orders to choose from. They are Sell-Limit/Sell-Stop Limit, Sell Limit, Sell Stop, Buy Stop-Limit, Buy Limit, and Buy Stop.