Globally, MetaTrader is the most popular online trading platform, and its two main kinds are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). But what are the differences between MT4 vs MT5, and which one is better? Both are created to allow smooth trading of forex CFDs, futures, and stocks. Metatrder offers high flexibility and real-time enter-to-market prices; they enable you to trade multiple orders at once. MetaTrader is a beneficial platform whether you are a beginner or an expert at trading. But before you make a MetaTrader, you have to know which platform you gonna use.
What is MetaTrader 4?
MetaTrader 4 is an online trading platform favoured by forex traders. It was released in 2005, giving millions of users easy access to the financial markets. It offers advanced trading tools that give traders to implement their favourite strategies. We can also trade commodities and index instruments through Contracts for Difference (CFD). It is used for real-time currency prices, fundamental analysis, automatic trades through custom algorithms, and open or modified orders.
What is MetaTrader 5?
MetaTrader 5 is a multi-asset trading platform; that was launched in 2010. It enables you to trade stocks, Forex, and futures and offers advanced tools for algorithmic trading ( Expert Advisors and trading robots ), price analysis, and copy trading. It is considered more improved and diversified with better charting, exclusive indicators, and spread to trade over 500+ markets, including Forex, cryptocurrencies, indices commodities, and stocks through one platform.
MT4 vs MT5: Difference Between MT4 and MT5.
As you can see, Meta Trader 5 generally has more time indicators and trading functionalities. Meta Trader 5 is not definitely better than Meta Trader 4; it’s quite different. Let’s compare them in detail.
1: Market Coverage:
Meta Trader 4 is mainly organized for forex trading; Meta Trader 4 concentrates on currency markets, making it the selected choice for forex traders.
Meta Trader 5, with the expanded market coverage, caters to traders interested in multiple asset classes, including futures, stocks, and commodities.
2: Hedging:
An effective risk management strategy is hedges, which give you the option of counterbalancing any potential losses by opening a position opposite your current one.
MT4 allows you to hedge your trades and secure you from potential losses. MT5 gives you to hedge and net your trades, securing you against potential losses and also decreasing your financial risk.
3: Programing language:
Software developers use programming languages to communicate with computers. It helps in creating machine code output and helps platforms function smoothly.
A programming language makes MT4 reliable for beginners who are not involved in developing their own trading algorithms.
MT5, on the opposite, is built on a more complex programing language that allows traders to write their own trading strategies, improve scripts, and conduct advanced trading analysis.
4: Technical Indicators and Analytic Tools:
Both platforms are built to place more successful by technical indicators and analytic tools. It helps in forecasting the asset price change and helps traders with insignificant profitable traders for themselves.
MT4 delivers a vast selection of technical indicators and charting tools, offering traders the ability to conduct detailed technical analysis. Moreover, the availability of custom indicators and EAs is productive due to the platform’s popularity.
While MT5 contains most of the indicators available in MT4, it also presents additional built-in indicators, such as Market Depth and the Economic Calendar. However, the Library of Customs’ indicators and EAs for MT5 are comparatively smaller.
MT4 vs MT5: Advantages and Disadvantages Of MT4 and MT5:
If you are still not deciding which platform is more suitable for you, let’s compare the advantages and disadvantages.
Advantages of MT4:
1: MT4 is ideal and the best for beginners because it is easier and simpler to use.
2: It is the perfect platform to trade Forex as it was originally made for the needs of Forex traders.
Disadvantages of MT4:
1: Meta Trader 4 has rarer trading options than Meta Trader 5.
2: It is slower than MT5.
Advantages of MT5:
1: MT5 gives Forex trading, as well as stocks, commodities, indices, and cryptocurrencies.
2: MT5 has extra charting tools, timeframes, and technical indicators than MT4.
Disadvantages of MT5:
1: For beginners, MT5 can appear to be a complex platform.
2: MT5 has a few Robot and Expert Advisors.
Choosing The Right Platform:
When you are going to choose MT4 or MT5, you should have an authentic broker like XM. We should have free educational materials, including video lessons about MetaTrading. Both platforms, MT4 and MT5 forex trading platforms are popular among traders. But if you are new to trading, MT4 is the right choice for you.
Conclusion:
Both Meta Trader 4 and Meta Trader 5 are created with different purposes. Since they are not interconnected to each other and are not advanced from one another, both of them are suitable for different kinds of traders. But if you are a beginner trader who wants direction in forex markets, MT4 is the best platform for you. If you are an experienced trader and want to trade other markets, MT5 is the right choice.
Before making a final decision, it is good to check both platforms using demo accounts and determine which one is better for you.