Comparison between MT4 and MT5
Metatrader 4 (MT4) and Metatrader5 (MT5) are among the popular trading platforms in the foreign exchange market. Now the question crops up –what is a trading platform? A trading platform is software, which connects a trader with a broker. Traders can place orders via interface of the trading platform and then those are executed by the brokers. Providing information in the form of quotes and charts is one of the benefits of using a trading platform.
Metatrader4 or MT4 is a well-known trading platform, which was developed by MetaQuotes Software. It was released in 2005.Metatarder 5 is just an improved version of MT4, which was released in 2010.If you are new in the forex market; it is very natural to get confused which platform to choose for forex trading.
A brief account of how MT5 is different from MT4 is discussed below:
1. Installation - Metatrader 4 is simple and user-friendly software. Many users prefer Metatrader 4 as metatrader 5 download is not easy as MT4.
2. Compilation of Codes –You can find some differences in features of expert advisor between MT4 and MT5.Metatrader4 is designed with MQL code language, which is faster and easier to compile. But data transfer from Metatrader4 to Metatrder5 cannot occur.
3. Interface – Metatrader 4 has easy to navigate interface. This makes this trading platform popular among forex traders.
4. Trading methods- Metatrader4 offers almost all types of trading methods – hedging and LIFO, while the new version i.e., Metatrader5 does not support hedging and implements FIFO by default.
5. Memory space- Metatrader4 takes up less memory space compared to Metatrader5.
6. Choice of brokers: It has been found that many brokers offer Metatrder4 compared to MT5. So if a trader selects Metatrader4 for trading, s/he can select a broker from a wide range. Moreover, majority of brokers offer key services on MT4 only.
1. Variety of Charts and Timeframes – Metatrader5 offers 21 timeframes, whereas Metatrader4 offers only 9.Moreover, MT5 offers unlimited number of charts, out which 100 can open at a time.
2. Fundamental Analysis-Metatrader5 user gets the benefit of an inbuilt forex calendar. Features like news events, schedules, expected impacts, forecasts are also included in this calendar.Metatrader4 does not have this feature.
3. Indicators & analytical object tools – Metatrader5 offers 38 inbuilt indicators,22 analytical tools and 46 graphical objects, whereas metatrader4 offers 30 inbuilt indicators and 33 analytical objects.
4. Market Orders- A trader can send 2 market orders,6 pending orders and 2 stop orders through MT5 whereas, Metatrader 4 allow a trader to send 2 market orders,4 pending orders, 2 execution modes,2 stop orders and a trailing stop.
Although both MT4 and MT5 have their own advantages and disadvantages, still Metatrader 4 has been found to be more popular in the forex trading.