For those involved in forex trading, you’re likely familiar with the two prominent trading platforms – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms stand as the most popular choices in the market and are widely offered by online brokers, with MT4 being particularly prevalent. While other trading platforms do exist, we will concentrate on these two major options for today. Here are the key similarities between the two:
- Availability: Both MT4 and MT5 can be accessed for free through your forex broker. In contrast, some other platforms may require a substantial lifetime licensing fee, often around $499.
- Developer: Both platforms were developed by MetaQuotes Software Corporation, a prominent name in the financial market.
- User-Friendly Interface: Both MT4 and MT5 offer intuitive and easily navigable interfaces. Additionally, there are numerous online video tutorials available for both platforms.
- Cross-Platform Compatibility: Both platforms are compatible with various devices, including Windows, Mac, iPhone/iPad, and Android.
MetaTrader 4 (MT4): Introduced in 2005, MT4 was specifically designed for forex traders. While it may appear simpler compared to MT5, it remains an excellent choice for those who want a straightforward forex trading experience, making it especially suitable for beginners. Some of its notable features include:
- Nine timeframes
- Four types of pending orders: buy stop, buy limit, sell limit, sell stop
- Allows hedging
- 30 built-in indicators
- Three order execution types
- 31 graphical objects
- Single-threaded strategy tester
- User-friendly and easily accessible on various devices
MetaTrader 5 (MT5): Five years later, MT5 was introduced. Contrary to popular belief, MT5 is not just an upgraded version of MT4; it was specifically created to offer access to stocks, CFDs, and futures, as MT4 was primarily tailored for forex trading. MT5 provides a more advanced programming language, enabling traders to execute a wider range of actions and offering additional timeframes, pending order types, built-in tools, and more. Here are some of MT5’s most notable features:
- 21 timeframes
- Six types of pending orders
- Allows hedging and netting
- 38 technical indicators
- Economic calendar
- Four order execution types
- Supports various transaction types
- 44 graphical objects
- Multi-threaded strategy tester
- Fund transfer between accounts
- Embedded MQL5 community chat
- User-friendly and accessible on various devices
In addition to offering more pending orders, order execution types, and other options, MT5 also provides additional built-in convenience features. These include the ability to transfer funds between accounts directly within the platform and the presence of an embedded community chat, adding convenience to the trading experience.
The Bottom Line: Comparing MT4 and MT5 is not as straightforward as comparing apples and oranges. Both platforms are user-friendly and designed for easy navigation. MT4’s simplicity makes it a better option for beginners or those who don’t require the advanced features of MT5. On the other hand, MT5 was specifically created to broaden trading possibilities with access to stocks, CFDs, and futures. It offers 12 more timeframes, two additional pending order types, netting, one extra order execution type, more graphical objects, and a multi-threaded strategy tester.
Nonetheless, many traders still prefer MT4, as they may not need all the extra features that MT5 provides. Ultimately, the choice between the two platforms boils down to personal preference. Some traders are firm advocates of one platform over the other, while others are content with either. If you’re uncertain, consider testing out demo accounts on both MT4 and MT5 to determine which platform best aligns with your trading needs.
FAQs (Frequently Asked Questions):
- Is it possible to switch from MT4 to MT5? Certainly! Transitioning from MT4 to MT5 is entirely feasible. However, it’s essential to be aware that MT5’s programming language is more complex than MT4’s, which means any custom indicators or expert advisors in MT4 would require rewriting to function in MT5. Additionally, keep in mind that the two platforms cater to different financial instruments, so ensure that MT5 aligns with your desired trading options.
- Can I use both MT4 and MT5 simultaneously with the same broker? In most cases, you can use both platforms simultaneously with the same broker, but it depends on the broker’s policies. Some brokers may offer both platforms to their clients, allowing traders to access different features based on their preferences. However, it’s essential to verify with your broker whether they provide access to both MT4 and MT5 and whether your account supports the use of multiple platforms.