Differences Between MT4 & MT5 That Traders Must Know
June 7, 2023 (Investorideas.com Newswire) Anyone who is slightly in touch with the online trading community must have come across the MetaTrader softwares at least once. This was the first trading platform that could match up to the popularity of MetaTrader 4 and 5 to this date. In fact, MetaTrader 4 is a veteran trading platform which became the top choice of more than 16 million online users as per the latest statistics. However, beginners are often indecisive when it comes to choosing between the two because of their obvious similarities. Hence, we have written this article to help you by pointing out the key differences between MT4 and MT5 that traders need to know to choose the best one for themselves.
Basic Differences - MT4 vs MT5
1. Year of Launch - You may already know that the same software company, MetaQuotes Corporation, develops MT4 and MT5 platforms. MetaTrader 4 was launched way back in 2005. MT5 was launched as its powerful successor later on in 2010. So, MT4 is the senior among the two, making it a traditional platform, whereas MT5 is the updated version, making it a modern trading platform.
2. Asset Classes - Both MT4 and MT5 can be used to trade a number of asset classes. But MT4 is still the standard platform for forex trading, and MT5 was introduced as a multi-asset trading platform ever since its launch.
3. Availability - Both platforms are freely available online on both desktops and smartphones. You just need to find a broker who has integrated with MT4/MT5 for trading in the live markets. However, MT4 is the most commonly used platform, as it is offered by almost every online brokerage. But MT5 is still quite new; only a few brokers offer it for trading. Hence, MT4 is more accessible and easily available in comparison to MT5.
4. Features and Tools - Both platforms are feature-rich and offer many powerful trading tools. Still, MT5 offers more tools and features, making it superior to MT4.
- MT4 has 9 different time frames for technical analysis. On the other hand, MT5 offers 21 timeframes in total.
- MT4 offers 30 built-in indicators, whereas MT5 comes with 38 built-in indicators.
- MT4 has 31 graphical objects, whereas MT5 offers 44 of the same.
- With MT4, you get 3 types of order execution, but on MT5, there are 4.
- MT5 allows a partial order-filling policy which is not there in MT4 trading.
- The embedded chat feature is available on MT5 and not on MT4.
- MT5 is relatively faster and more stable than MT4.
These are some of the differences in features and tools which can be pointed out at first glance. You can see some more differences in their functioning and the overall trading experience you get on MT4 vs MT5 when you start using the platforms.
5. Programming Language Used - MT4 uses MQL4 as its programming language, and MT5 uses MQL5, which is more advanced in comparison. The differences in the programming language used are quite crucial as this makes a lot of difference in configuration and operations. The use of a more advanced programming language surely makes the MT5 trading platform technologically superior. MT5 users can get an advanced trading experience making it a suitable place for executing complex strategies with greater ease.
On the other hand, MT4 is more simple, with a basic set of tools and features, which makes the platform more suitable for less tech-savvy novice traders. Most newbies start their trading journey with MT4 and transition to MT5 later on when they get enough experience with the first version of MetaTrader. But you can also start trading with MT5 if you want to get advanced trading experience at the beginning itself.
6. Downloading and Trading- Despite the obvious differences between the MT4 and MT5 platforms, the process of downloading and trading remains pretty much the same. The easiest way to download MT4 or MT5 is by going to your broker's website. The broker platform will provide a download link for the trading platforms offered on their website.
You can just install the softwares from there and then log in with the credentials provided by your broker. For downloading the platforms on your smartphone, you can just search them on the app store or play store and easily download them from there. When it comes to trading, the process won't differ much except for the fact that MT5 offers more order types to choose from.
7. Enhanced Features - MT4 vs MT5 - We cannot go without mentioning the enhanced features that are offered by both platforms. Just like any other software, MT4 and MT5 are also getting timely updates to add new and better features. For MT4, the latest version has 20x more speed than its previous versions, and a new function has been added to test a strategy with multiple threads.
Traders who are more into mobile trading can surely check out the enhanced features that you get on the MetaTrader 5 mobile app version. It provides better chatting tools, has a better memory and the application tends to be way smoother in operation. In fact, the MT5 mobile app even displays real-time total volume when you open fresh charts for trading.
8. Pros and Cons- MT4 vs MT5 - The pros of MT4 are user-friendliness and simplicity. The platform has added all essential tools and features without making it complex for first-time traders. The number of tools is limited, which makes it more appealing to first-time users as they don't want to get confused with too many tools to choose from. But this simplicity can also be a drawback for traders who want to explore more features and tools as they advance in their trading.
For MT5, the advanced trading experience you get with the powerful capabilities is a huge plus. You can diversify your portfolio with multiple asset classes and can even try out complex strategies. But the same thing is also negative if a trader doesn't want to use too many tools in the first place. Some traders may get intimidated when they open MT5 for the first time as the platform is loaded with a lot of tools that may not be necessary for all types of traders. So, we can say that the pros and cons of MT4 and MT5 largely depend on the user's perspective and requirements.
How to Choose the Best One for Yourself? - MT4 vs MT5
The traders themselves should make the decision to choose between the two after careful consideration. Because each trader is different from one another, one must opt for a platform with a large number of users. It is important to consider your trading goals and requirements instead of just joining the bandwagon blindly. There is no doubt in the fact that MT4 is a powerful trading platform with millions of users around the world. But you need to ensure the classic MetaTrader 4 is sufficient for you. The best way to make a choice is to take time to explore both platforms with demo trading. You will be able to make a final choice based on the trading experience you get with each of them.
To sum it up, the MetaTrader platforms are essential to the trading process. Many new platforms are being introduced in the market, but most online traders still have a preference for the MetaTrader softwares. The superior features and tools might be a reason for this preference, along with the user-friendly interface. Undoubtedly, online traders have placed great trust in the MetaTrader platforms and are still leading the industry with their unparalleled performance. You just need to find the best one for yourself, which could be your first step towards success in trading.
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