MT4 vs. MT5: What’s the difference?

MT4 vs. MT5

No matter what your level of expertise is, it is quite unlikely that you are unfamiliar with MetaTrader or MetaQuotes Software.

MetaQuotes Software Corp. is recognised as one of the most successful companies in the industry of developing software solutions for brokerages, banks, and exchanges. The company was founded in the year 2000. The company is responsible for the creation of a number of successful products, including a straightforward platform known as FX Charts, as well as the MetaTrader 4 and MetaTrader 5 platforms, which are more commonly abbreviated as MT4 and MT5, respectively.

Users of either MT4 or MT5 have access to a variety of trading tools, and the execution speed of both platforms is exceptionally quick. This software is utilised by the vast majority of brokers all over the world. As a result, customers have access to many award-winning trading platforms, the ability to check live streaming prices and charts, the capacity to place orders, and the capability to manage their accounts.

In spite of this, there are a number of differences and similarities between the two programmes that are important to comprehend.

Key features:

MT4, which came out on the market on July 1, 2005, is an electronic trading platform that is straightforward and uncomplicated to operate. It is designed specifically for the online retail FX market.

MT5, on the other hand, was released five years later on June 1, 2010, and it is a multi-asset trading platform that includes everything in one convenient package.

Mobility:

Having to leave the trading station while you’re in the middle of a deal or while a setup is within striking distance of its buy/sell line can be challenging.
Traders are able to access their trading platforms around the clock and from anywhere in the globe by using the mobile versions provided by MT4 and MT5 on iOS and Android-powered smartphones and tablets. Traders can also use the mobile versions of MT4 and MT5 on desktop computers.

Interactive quotation charts, a full range of trading orders, popular analytical tools, the opportunity to check account status, and the ability to buy and sell financial instruments are some of the functionalities that are given on mobile versions of the website.
Analytics:

One of MetaTrader’s many strengths is unquestionably its ability to create analytical items.

Both platforms give consumers the ability to modify the user interface to better meet their individual trading requirements.

Interactive charts on MT4 come fully equipped with a total of nine timeframes to pick from, while the timeframe selection on MT5’s charts is an astounding twenty-one.

On MT4, traders have access to 30 built-in technical indicators, whereas MT5 provides 38 of these indicators. In terms of drawing tools, the MT5 platform delivers various enhancements in comparison to its predecessor. These enhancements include additional drawing tools for Elliot wave analysis and Fibonacci studies. MT4 has a total of 31 graphical objects, whereas MT5 has a total of 44 graphical objects available.

It is also important to note that both platforms come equipped with an alert mechanism, complete with audio and the most recent business news. If you trade in numerous marketplaces, you may find this useful. The economic calendar is yet another useful feature that MT5 brings to the table. Traders are notified via an alert whenever high-impacting macroeconomic news is likely to hit the wires via an indicator that is attached to the bottom of the chart in the form of a little, yet fashionable, time function.

A significant distinction between the two platforms that is worth pointing out is that MT5 provides market depth (DOM, which stands for depth of market), which enables customers to see the prices at which bids and offers are being made in various marketplaces.

Trading based on algorithms:

Trading with the assistance of an automated trading system is known as algorithmic trading. These systems are often referred to as “trading robots” in some circles.

Both MetaQuotes Language 4 (MQL4) and MetaQuotes Language 5 (MQL5) are built-in programming languages that are designed to meet the demands and expectations of traders when it comes to the creation of trading programmes.

Traders are able to develop expert advisers by using this language, which they must accept and understand (EA). Your trading process can be automated by implementing virtually any trading strategy as a trading expert advisor (EA). Traders also have the ability to construct their own bespoke indicators, in addition to this.

Systems that were programmed with MQL4 are incompatible with programmes written in MQL5.
The configuration of the trading system is yet another important distinction that should be pointed out. MQL4 is utilised for the development of trading programmes that are based on the order system, whereas MQL5 is used for the implementation of a positioning system.

It is believed that MQL5, which is the successor to MQL4, is more user-friendly and has a higher level of efficiency. MQL4 demands the completion of multiple functions for each individual trading operation. It is also important to keep in mind that the enhanced Strategy Tester for Expert Advisors will be available on MT5, along with Agent Manager for remote optimization.
Buying and selling and orders:

Both MT4 and MT5 have execution modes that are comparable to one another. On MT4, traders have access to the following execution modes: instant execution, execution on request, and execution by market. However, MT5 traders have access to a fourth mode of execution known as exchange execution. Orders are transmitted to an external trading system when using this option (exchange).

MT4 has four different order types for pending orders, which are execution modes used to buy or sell a market at a preset price at a later time. These order types include buy stop, buy limit, sell limit, and sell stop. MT5 offers six different order types for pending orders. The buy and sell stop limit orders are the additional two that are made available by using this application.

Additional points:

Only hedging is permitted under MT4. On the other hand, hedging and netting are both allowed in MT5. If a trader were to enter into a long position for one lot on a market, such as the EUR/USD, and then enter a second lot in the same market, the initial order entry would simply become one position, as opposed to being two independent positions. This is an illustration of netting.

Embedded functionality for the MQL5 community chat room.

On the MetaTrader 5 platform, it is possible to move money from one account to another.

Although MT5 is an all-in-one state of the art multi-asset trading platform encompassing both centralised and non-centralised financial markets, including stocks, futures, and FX trading instruments, MT4 is built specifically for CFD forex instruments and is used for trading in these markets.

MT5 is both quicker and more efficient than its predecessor, MT4. MT5 is a 64-bit platform that supports many threads, whereas MT4 is a 32-bit platform that only supports a single thread.

Both MT4 and MT5 have their own internal mailing systems, however only MT5 allows users to send attachments with their messages. To make sure there is no confusion, traders on either platform are unable to send emails to recipients outside of the Metatrader system; they can only send emails to the administrators of the trading server.

Which platform, MT4 vs MT5, is better compared?

This depends on the individual trader.

MT5 has a lot of new features, although some traders may prefer the simplicity of MT4 over the more advanced capabilities of MT5.

MT4 is an obvious choice if you’re new to trading or simply interested in trading ip forex. This platform is well worth investigating, though, if you’re a more experienced trader who can make good use of the additional features in MT5.

By Admin

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