MT4 and MT5 are well-known trading platforms. If you are new to MT trading, you might wonder which one to choose for forex trading. For instance, if you have started trading with MT4, you might wonder whether or not you should switch to MT5. To make an informed decision when deciding between MT4 and MT5, you must understand the differences first so you can effectively decide which one is better for you.
Read on to learn more.
MT4 and MT5 – An Overview
MetaQuotes is a Russian software company that happens to be the creator of MT5 and MT4. Some years ago, it seemed that MT5 was a failure and MT4 was going to stay longer. However, the last couple of years reflect that the trend has reversed, and MT5 users have been growing steadily. There is also a great number of brokers who are promoting MT5. Let us explore the main differences.
MT5 and MT4: The Number of Markets
The primary reason why MT5 was developed comes from the ability to provide access to markets that are inaccessible in MT4. This aspect indicates that metatrader 5 enables access to the major stock markets, too. Compared to MT5, MT4 is great for the decentralized, open, and unregulated scope of the forex market. Understandably, access to more markets can be beneficial for experienced traders who want to trade shares from more experienced companies, such as Apple.
MT5 and MT4: Market Analysis Tools
Let us start by exploring the chart timeframes for MT4 and MT5. MT4 only offers nine timeframes. On the other hand, MT5 offers twenty-one timeframes. If you look at it, you see that this difference can give traders an edge for a deeper analysis of the market.
Also, you have indicators where MT4 offers thirty in-built indicators and twenty-four analytical tools. With MT4, you can tap into over two thousand free custom indicators, whereas seven hundred are available for purchase. MT5 comprises thirty-eight technical indicators along with forty-four analytical tools. MT5 also offers an unlimited number of charts.
Differences in Algorithmic Trading
When it comes to Algorithmic trading, MT5 essentially supports more timeframes and comprises advanced charting tools. On the other hand, MT4 is more suited for beginner traders due to the simpler setup. MT5 uses MQL5, and MT4 uses MQL4, which is why MT4 is more suitable for beginners who want to have a simpler approach when creating scripts and indicators.
In contrast, MQL5 is another object-oriented programming language based on C++. This aspect gives professional algorithmic traders more room for advanced trading commands.
The Final Verdict
Keeping the differences in mind, it wouldn’t be wrong to state that MT5 is ideal for order management and stock trading. If you want to keep track of economic events, then you can leverage the financial calendar offered by MT5. The calendar showcases critical events that can potentially affect the trading market. MT4 doesn’t have this feature. However, the MT4 version is great if you want to become a pro at forex trading, as this platform enables faster trade executions while supporting multiple trading execution modes.
