MetaTrader platforms are among the most popular tools used by traders in the financial markets.
With the growing interest in online trading, there has been a significant demand for platforms that offer advanced features and ease of use Among these platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5) stand out as the most important options available to traders.
In this article, we will provide a comprehensive comparison between these two platforms, focusing on their differences, advantages, and disadvantages.
What is MetaTrader?
MetaTrader is a software platform used by traders to access financial markets and execute trading operations.
Developed by MetaQuotes Software, the first version, MetaTrader 4 (MT4), was released in 2005 Subsequently, MetaTrader 5 (MT5) was launched in 2010.
Both MT4 and MT5 are robust and comprehensive tools that provide users with numerous features and tools to help them analyze markets and make informed trading decisions.
Key Differences Between MT4 and MT5
MT4 and MT5 are leading platforms in the trading world, and while some features are similar, there are numerous differences that set each platform apart.
1. Programming Language
- MT4: Uses the MQL4 programming language, specifically designed for developing and programming Expert Advisors, indicators, and scripts.
- MT5: Uses the MQL5 programming language, which is more advanced and offers greater programming capabilities compared to MQL4.
2. Supported Markets
- MT4: Primarily supports forex trading and some CFDs.
- MT5: Supports a wider range of markets, including forex, stocks, commodities, indices, and futures.
3. Timeframes
- MT4: Provides 9 different timeframes for chart analysis.
- MT5: Offers 21 different timeframes, giving users more flexibility in market analysis.
4. Pending Orders
- MT4: Offers four types of pending orders.
- MT5: Provides six types of pending orders, giving traders more options for executing their strategies.
5. Technical Indicators and Analytical Tools
- MT4: Comes with 30 built-in technical indicators.
- MT5: Includes 38 built-in technical indicators, along with more advanced analytical tools.
6. Depth of Market
- MT4: Does not include Depth of Market (DOM) feature.
- MT5: Includes the Depth of Market feature, providing more detailed information on buy and sell orders.
7. Speed
- MT4: Known for its speed and efficiency but is less advanced than MT5.
- MT5: Features high speed and the ability to process a larger number of orders simultaneously.
8. Hedging and Netting Systems
- MT4: Supports hedging only, allowing traders to open opposite positions on the same pair.
- MT5: Supports both hedging and netting systems, providing traders with more flexibility in their strategies.
9. Economic Calendar
- MT4: Does not have a built-in economic calendar.
- MT5: Comes with a built-in economic calendar, helping traders keep track of important economic events.
10. Strategy Tester
- MT4: Offers limited strategy testing.
- MT5: Provides advanced strategy testing with multi threaded support, improving the accuracy and speed of backtesting results.
11. Other Differences
- MT4: Simpler and easier to use, making it suitable for beginners.
- MT5: Slightly more complex but offers advanced features, making it suitable for professional traders.
Which Platform is Better: MT4 or MT5?
When comparing MT4 and MT5, it can be said that the choice largely depends on the trader’s needs and level of expertise.
- MT4: An excellent choice for beginner traders and those who primarily focus on forex trading It is characterized by its simplicity and ease of use, making it suitable for those who prefer a less complicated trading environment.
- MT5: The best option for professional traders and those who wish to trade in multiple markets such as stocks, commodities, and futures It is distinguished by its advanced features and the ability to support complex strategies.
Frequently Asked Questions
1. Can MT4 and MT5 be used on the same account?
- No, you need a separate account for each platform.
2. Can Expert Advisors be transferred from MT4 to MT5?
- No, because MT5 uses a different programming language (MQL5).
3. Which platform is better for beginners?
- MT4 is simpler and easier to use, making it the best choice for beginners.
4. Do both platforms have mobile applications?
- Yes, both MT4 and MT5 have mobile applications available for iOS and Android.
5. Can advanced technical analysis be performed on MT4?
- Yes, but MT5 offers more advanced analytical tools.
Conclusion
MetaTrader 4 and MetaTrader 5 are powerful and essential tools for traders in financial markets. Each platform has its unique features and differences, making it suitable for different categories of traders.
Ultimately, the choice of the best platform depends on the individual needs of the trader and the type of assets they wish to trade.