MT4 vs MT5: MetaTrader Platform Versions Compared. Which One Is Better?
Even if you’re new to trading you would have heard of the MetaTrader platforms. It is the most common trading platform offered by the majority of CFD providers. Developed in 2000, the MetaQuotes Software Corp has become one of the most used applications for financial institutions.
MetaTrader 4 is a commonly used trading platform among forex traders and is available on both mobile and desktop devices. The MT4 is easy to download and install on to your chosen device – Windows, macOS, Android or iOS. Some traders appear to be finding it hard to change their password on the platform but it is in fact not a difficult task. Like any piece of software it is also important to make sure it’s updated to the latest version.
On the MT4, there are many functionalities that are available which we will explore further.
On this platform, the trader can easily follow price fluctuations in real-time. One can also analyse price charts over different timeframes. This makes it reasonably accessible when trying to identify a trend before you open a buy or sell position.
The following charts can be viewed on the MT4 platform: Candlestick, Heikin Ashi and Renko Charts.
You can also use Expert Advisors (EAs) on the MT4 to automate your trading. EAs use scripts which are then uploaded onto the platform. EAs will ensure that you don’t need to be sat in front of your computer 24/7. It will also point out any trading opportunities by identifying potential price trends.
The MetaTrader 5 platform was developed five years later than the MT4 and has additional features that are not available to traders using the MT4. The MT5 allows the trader to use 38 technical indicators and 44 graphical objects, ensuring that accurate technical analysis is achievable. As well as this the trader is updated with the latest macroeconomic news due to the economic calendar.
When placing an order on MT5 you have the choice from 2 market orders, 6 pending orders, 2 stop orders and a trailing stop. This differs from the MetaTrader 4 platform which only provides 2 market orders, 4 pending orders, 2 stop orders and a trailing stop.
MT4 versus MT5: Which one should I choose?
Choosing between the MT4 and MT5 is entirely dependent on your needs. Most traders are opting to trade on the MetaTrader 4 platform. However, both platforms deliver fast execution and show price fluctuations in real-time.
There are slight differences between the two which could help make your decision on what trading platform you choose.
As explained earlier in this article, the MT4 software is available on both mobile and desktop devices. This is also the same for the MT5 platform. However, you can also access the MT5 straight on to a web browser which you can’t do on the MT4, as there you need to download the software onto your desktop.
If you want to analyse price across various timeframes (depending on your trading strategy), this might be a factor that could sway your decision.
The MetaTrader 4 software offers 9 timeframes; this ranges from the 1-minute timeframe to the monthly chart.
The MetaTrader 5, on the other hand, offers 21 different time frames across all financial instruments. This includes a two and three-minute timeframe as well as different hourly charts. This will be beneficial for traders who want to conduct a thorough analysis of the instruments, especially when identifying supply and demand levels.
Building your own EAs
One of the major benefits of the MT5 trading platform is that it allows traders to build their own EAs. This way they are not restricted to the built-in technical indicators. It ensures an extra level of accuracy when it comes to market analysis and forecasting which way the price will move.
Start Trading Today
If you are interested in trading on either the MetaTrader 4 or MetaTrader 5 then there are two account types you can choose from with Eightcap. Alternatively, you can also download our free demo trading account.