Financial markets have been the centre of attraction for years; the traders invest in their capital to generate money and diversify their portfolios. Traders and investors find several options to invest. It could be a stock market, forex market or any other market that suits the trader’s needs. But, investing and getting good returns is not that easy a task.
Traders have to put in a lot of effort and research with technical support to maximise profits. So, to become professionals in the field, traders may have to follow certain activities or processes to achieve the goal. They use technical analysis or trading platforms, or other indicators that generate money.
With the article, we’ll be understanding the use of one of the most used and preferred trading platforms, MetaTrader 5 vs 4. The trading platform comparison will provide traders with an insight of the market and how to be a profitable traders. So, let’s get started.
What is MetaTrader5?
The experts or people who trade regularly must have come across this term, MetaTrader5 or MT5. A trading platform that makes the investment simple and more convenient for the traders. The trading platform MT5 is a forex trading tool that helps traders analyse the market using the software.
A trading platform, released in 2010 by MetaQuotes after five years of the introduction of MetaTrader4. The launch of MT5 gave the forex traders an idea that it is an advanced version of the already existing Mt4.
But, that’s not true; MT5 is a trading platform designed for forex traders and other markets helping traders and investors in back testing.
The trading platform was basically created for carrying out services that MT4 was not able to perform. With different markets in focus and giving a broader aspect for trading. Although it is a graphical interface and is similar to MT4 it still incorporates a diversification for the traders.
What is MetaTrader5? It is a trading platform that helps traders get signals, analyse markets with technical and fundamental information, and is confined to forex trade. Traders can diversify their portfolios using MetaTrader5; it could be used for the stock market, cryptocurrency trading, indices, or any other market that traders think will make future profits.
The trading platform plugs in the centralised market well and does not necessarily work with a decentralised market like forex. The creators of MT5 and MT4 have designed both with a thought; with the coming paragraphs, we’ll understand MetaTrader5 vs 4, but here we’ll realise that MetaTrader5 is built for both the retail and professional traders.
MetaQuotes company came up with MT5 as they foresaw a future for other markets and a trading boom. However, the popularity of MT4 is much more than MT5, with high use by forex traders.
Mainly, all the forex brokers offer the services of trading platforms; however, MetaTrader 5 vs 4 will give you a brief idea of what they perform and how a trader can use these to minimise the risks and double the profits.
What is MetaTrader4?
Since its inception, a renowned and user-friendly interface trading platform, MT4 has been an essential tool for traders. The trading software was developed in 2005 by MetaQuotes MT4 or MT5; both are created for trading in the financial markets with the main focus on forex trade.
MT4 is a customisable trading platform with huge popularity among traders. It offers traders with a number of facilities that could be adjusted as per the trader’s requirements. The trading platform has the following features to enhance the trade:
- Automated trading
- Expert advisors
- Technical analysis
- Fundamental analysis
- Trade signals
- Mobile trading
- Available for various devices
- Highly advanced
- Helps traders predict
- Uses algorithms
- Provides news and information
- Flexible trading
- 30 in built indicators
- Charts and patterns
- 9 time frames
- Different execution modes
- Trade history
- 23 analytical objects
- Easy download and use
Trading Platform Comparison
Till here, we have understood what is MetaTrader5? and about the MetaTrader4 trading platforms. The next step is to get a better insight of the two by analysing MetaTrader 5 vs 4. In the paragraph, we’ll discuss the difference and the similarities shared by the trading platforms.
MetaTrader 5 vs 4 is not easy to grasp as both are the same company’s software that works to simplify the trade. However, the reach and popularity of trading platforms are different. MetaTrader4 is a more popular and widely used trading tool with every toll included to help traders earn high profits.
MT4 or MT5, which one to use for trading, both are used for back testing and trading with full market analyses in the various markets. MetaTrader4 is easy and more used than MT5 with browser and mobile based trading.
Both the trading platforms are accessible through online brokers, but MetaTrader4 is provided by most of the online brokers, such as TradeATF. MetaTrader5 is not that easily provided by the online brokers and makes it difficult to use due to low availability with the brokers.
Another reason for MetaTrader 5 vs 4 is the popularity; MetaTrader4 is quite popular due to its high use and preference among the traders and investors and moreover the brokers.
MT5 has no hedging rule, which makes it different from the MT4; traders can use hedging with the MT4 trading platform and not with MT5 in some countries. MT5 is not a part of MT4; it’s altogether a new trading software. Traders confuse it with a new updated version of MT4.
MetaTrader5 was designed to attract new market options such as the CFDs, commodities, stocks or futures etc. While the MetaTrader4 was designed for the forex market specially.
Key Differences: MetaTrader 5 vs 4
The two share some key differences that make them work differently and use according to the need. So, let’s get a quick look at the two trading platforms and know when to use these.
- MetaTrader 5 vs 4 first difference is the language used; MT4 works on MQL4, and MT5 operates on MQL5.
- MT4 works on slow single back testing, whereas MT5 works on fast multiple back testing process.
- MT4 does not work in a compatible language with MT5, but on the other hand, MT5 language supports and works with MT4.
- MetaTrader 5 vs 4 another difference is the technical support, MT4 has no technical support, but MT5 uses technical support for its trading analysis.
- MetaTrader4 has traditional time frames for its operation in the markets. In contrast, MetaTrader5 has twice the time frames to work.
- MetaTrader 5 vs 4 major difference is their order types, MT4 offers 4 pending orders to trade. In comparison, MT5 has 6 pending orders to trade.
- The depth of market (DOM) is not included in MT4 but is part of the MT5 trading platform.
- MetaTrader 5 vs 4 one more significant difference is the economic calendar, MT4 offers no economic calendar, but MT5 includes an economic calendar in its trading.
Similarities: MetaTrader 5 vs 4
The trading platforms with so many differences share some similarities as well, which connects them. Here are some common things between the two trading platforms, MetaTrader 5 vs 4:
- Metatrader 5 vs 4 share similarities that make them usable for the trade for the same functions; both have automated trading systems.
- The two use algorithms for the trade, which makes it more user-friendly.
- There are expert advisors in both the trading platforms to help traders make decisions.
- Both work for forex and other financial market trades to trade conveniently.
- There is an email system in MetaTrader 5 and 4 with the execution of orders using the software.
- MetaTrader 5 vs 4 also offers one more similarity of flexible trading systems with technical and fundamental analysis.
- The work of both the trading platforms is similar; MetaTrader 5 and 4 work to predict the market movements and have high profits.
How to use MT4 or MT5?
To use the trading platforms, traders have to follow certain steps to get them for trading and use the advanced trading tools for analysis and executing the orders. In some simple steps, traders can use trading platforms:
The initial footstep is to open an account with an online broker; with the account, traders can access the trading platform that suits their trade requirements and the market trader wants to invest.
The second step is to download MT4 or MT5 from the broker’s services. The download process is easy; traders have to only click on the download button and use the MT4 or MT5 version that goes with the device.
The third step is to open a trade position in the market using the trading platform. Traders can use the order window in the trading platform to make new orders; there, they have the options of symbol, volume, stop loss, type, take profit and comment. Traders can even use instant execution to buy and sell securities from the market.
If there is any pending order, traders can make changes or check them with the pending order window. In the fourth step traders, monitor the market position, check on pending orders and close positions if required.
With the trading platform, traders can modify their stop loss limits using the terminal window of MT4 or MT5 traders can modify the orders.
In the MT4, traders can even customise the tools and charts according to the requirements and use the various features. They can even add indicators and other tools to execute the orders and have market predictions. Moreover, traders can check the market movements with the time frame option of the trading platforms.
Next, traders set the price alerts and check the trade history for executing other orders and having flashbacks for references.
Trading platforms, MT4 or MT5, also have the option to download the reports of the trade. Thus, a brief overview of the trade and orders.
Is it safe to use trading platforms?
Trading with the trading platforms is secure and safe; traders can use the trading platforms through online brokers. The brokers do not charge any extra fee for the use of the trading platform; however, they have to deposit funds in the account to trade.
The trading platform makes it easy for traders to make decisions, predict the market movements and get signals using the indicators and other tools.
Thus, trading is secure with the trading platforms, the execution of orders with advanced tools, time frames, expert advisors, automated trade and indicators etc. Traders can study the market, make strategies and execute them with the MT4 and MT5.
Why use trading platforms?
Traders can use the trading platforms to make the trade convenient and profitable. MT4 has an algorithm with the MT4 code base of MLQ4 that supports the working of the software. Using the MetaTrader 5 vs 4, traders have an idea of the use and what they are?
So, we know the use of the trading platforms, here we have made points that facilitate the trade:
- Helps place trades
- Execution of orders is easy
- Monitor the trade
- Checks the pending orders
- Has expert advisors
- Automated trading
The facilities make the trading platforms worth using and simplify the trade with possibilities of good returns on investments.
Trade has a lot of opportunities with a similar amount of risks, which traders want to avoid or minimise. For this, they use various tools and softwares to have a smooth trade experience. Trading platforms are the preferred and tested tools that boost trade.
As the trade is risky, these trading platforms make them sorted for beginners and professionals. The article, MetaTrader 5 vs 4, manages to sum up all the necessary points that make up a good and profitable trade.
Furthermore, its services with expert advisors, algorithms and what not make it easier for traders to predict and make a move.