As a Forex trader, you have the freedom of choice when choosing a trading platform. Nevertheless, the Forex broker you sign up with can determine the type of trading platform you end up using since the available trading platforms on one Forex broker may differ from that of another broker. Before you sign up for a trading account on any of the Forex brokers around, you should first find out about the trading platform offered by that Forex broker.
There are many types of Forex trading platforms today, but the most popular ones are the MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
These two are very popular, each having specific features that make it stand out. In the remaining part of this write-up, we will show you some of each trading platform’s unique factors and enlighten you about MetaTrader 4 vs 5.
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Both MT4 and MT5 trading platforms have specific features that stand out for Forex trading. They both have their pros and cons, which you must consider before downloading any of them for trading Forex.
If you are a Forex trader in the United States seeking to comply with Forex trading regulations in the USA, then MT5 is better. Do you want to do backtesting to enable you to properly test a strategy before you start using it? Then you must consider using the MT5 platform.
MT4 offers many assets, but the number of assets you can find on it can never be up to what an MT5 trading platform offers. Check below for more helpful hints about these two trading platforms.
MT4 started operation as far back as 2005. Virtually all the Forex brokers around today give access to the MT4 platform. You can go for this trading platform if you want to trade CFD on many assets. Its popularity is incomparable in the world of Forex trading platforms.
MT4 is licensed by MetaQuotes Software Corp and works on windows, iOS and android operating systems. The trading platform is 100% free to use; you will not pay before accessing it. It enables the traders to access technical analysis, charts and trade operations in real-time. The trader can also access 50 basic indicators in MT4 and many customized indicators. You also have the freedom to add custom indicators.
It was made open to end-users in 2010, 5 years after the launching of MT4. Not all Forex brokers offer the MT5 trading platform. It is, therefore, not as popular as the MT4 trading platform. If you trade Forex in the United States and want to be on the right side of the law, you should trade on the MetaTrader 5 platform. Some may think the two are similar, but findings show that an MT5 trading platform is an advanced form of the MT4 platform. MT5 makes it possible for the Forex trade to assess new markets beyond what the MT4 trading platform can offer. Some of the markets you can trade on the MT5 platform include:
MT5’s programming language is MQL5, against the MQL4 programming language in MT4. MT5 was initially a lot easier to program than the MT4 trading platform. As a result, it served as a better framework for developers and end-users involved in building and using trading robots, including other expert advisers. However, the discrepancy is no more since MetaQuotes expanded this same capability into the MQL4 in 2014, enabling users of both platforms to build and use trading robots with the same speed and responsiveness. While MT4 may have some exciting features, it is obvious that MT5 will always take the lead in a MetaTrader 4 vs 5 comparison. If you are only interested in trading Forex pairs, you can make do with MT4 without worrying about MT5.
You cannot use any program built for MT5 on the MT4 trading platform. If you need programs working on MT5, you will have to switch to MT5 and not attempt to upgrade MT4.
MT5 offers a fast backtesting functionality, which is absent in MT4. Consequently, you will not have to spend a lot of time on programming activities when you use the platform. If you need to run several backtests, MT5 is the better-suited trading platform. You can even use MT5 to carry out multiple backtests simultaneously.
MT4 or MT5 does not have any say regarding the particular tradable instruments accessible to the trader. The sole determinant of this is the Forex broker with which you register. Traders can access Forex CFDs on the MT4 platform but can access both Forex CFDs and non-Forex CFDs on the MT5 trading platform. You can, therefore, trade indices, stocks, cryptocurrencies, energies and precious metals on your MT5, unlike the MT4 platform.
Both MT4 and MT5 offer interesting charting tools. You can access up to 24 charting tools on MT4, covering everything from lines to arrows, shapes and the Gann. On its part, MT5 gives access to up to 44 charting tools, giving the trader access to more charting possibilities. The number of time frames in MT5 is also more than what you can get in the MT4 trading platform.
|MetaTrader 4||MetaTrader 5|
|It is built with the MQL4 language||It is built with the MQL5 language|
|It permits slow single backtesting||Backtesting is multiple and fast|
|Traders cannot access technical support but can interact via a huge community.||Traders can access technical support|
|Only traditional timeframes are accessible||Traders can access more than the traditional timeframes|
|Four pending order types||Six pending order types are accessible|
|The programming language does not comply with MetaTrader 5||The programming language complies with MetaTrader 4|
|Traders cannot access the depth of market||Traders can access the depth of market|
|No economic calendar||Included with the economic calendar|
We have opened your eyes to some of the important similarities and differences between MT4 and MT5 in the MetaTrader 4 vs. 5 analyses above. Both platforms are good, but you may want to go for MT5 if you want to have more features than what the MT4 platform can offer.