The trading platform that an investor selects can have a huge impact on their overall strategy and success. It influences everything from the tools at their disposal, to the type and scope of data available to them, the tactics they can use, and even the brokers they can choose from.
Two of the most popular platforms are MetaTrader 4 and its successor, MetaTrader 5. The latter was created and marketed as an improvement on the former, yet many still cleave to the earlier technology. If you’re one of the many trying to weigh up the differences between them, then here are a few things that you ought to know…
The Benefits of MetaTrader 4
Installing MetaTrader 4 is Easier than Installing MetaTrader 5
One key difference that many users celebrate is how much simpler the older software is to install.
Codes are Faster to Compile
There are also some variations between the expert advisor features of both of the platforms. In the former, expert advisors are designed with the native MQL code language, as opposed to C++, which makes them faster to compile. These codes cannot be ported between the two platforms, which means that when MetaTrader 5 was introduced, this data could not be transferred from one to the other – a real issue for many traders.
Interface is Easier to Navigate Around
The interface is infinitely easier to navigate around, as has been demonstrated by repeated user polls. Although its successor is actually more refined, most traders still prefer the simplicity of the original.
Caters to All Trading Methods
One of the most frequently lamented changes in the more recent version is that the newer platform fails to support hedging, and implements FIFO by default. The original, on the other hand, caters to all trading methods.
More Brokers Offer MetaTrader 4
Another notable boon of using MetaTrader 4 is that it gives you a wider range of brokers to choose from. Far more firms deliver key services on MT4 than on MT5, which significantly increases your options.
The Benefits of MetaTrader 5
However, these differences do not mean that MetaTrader 4 is inherently better than MetaTrader 5. The latter showcases many improvements on the earlier technology, and here are just a few of them…
Offers a Greater Variety of Charts and Timeframes
The original edition offers a respectable nine timeframes for traders to use. MetaTrader 5, however, has the edge, with 21 timeframes, and an unlimited number of charts, 100 of which can be open at any given time.
Offers Fundamental Analysis
One of the main improvements showcased by the recent platform is the addition of an inbuilt forex calendar. This can be opened in its own tab, and includes features like news events, schedules, expected impacts, forecasts, and so on.
Commerce is Integrated into the MetaTrader 5 Platform
Another major difference is the way in which commerce is integrated into the platform. This allows traders to purchase or rent forex products directly through the market tab, as well as read industry magazines.
Extra Eight Inbuilt Indicators
In terms of indicators and analytical object tools, MetaTrader 4 features an impressive 30 inbuilt indicators. However, its successor goes a step further, offering 38, along with 22 analytical objects and 46 graphical objects.
MetaTrader 5 Allows You to Place More Market Orders
A further difference lies in the number of market orders that traders can place. In MT4, the figure stands at two market orders, and four pending orders. For MT5, this capacity is increased: to two market orders, six pending orders, and two stop orders.
Which platform would be best for you?