When it comes to trading, there are a variety of tools and platforms that can aid your ability to trade whether you are experienced in the field or a complete beginner. Two of the key platforms to know about are MetaTrader 4 and MetaTrader 5 with each one serving different purposes and offering different functionalities depending on the route you want to take and the financial markets you wish to explore.
This article will assess and compare the two while pointing out the benefits of the two trading platforms.
MetaTrader 4 and MetaTrader 5 Defined
The MetaTrader 4 online platform has been used for trading Forex and analysing financial markets for nearly two decades. Developed by MetaQuotes back in 2005, MT4 can also be used to trade in indices and commodities via CFDs or spread betting.
MetaTrader 5, meanwhile, is a multi-asset platform that allows users to trade in Forex, stocks and futures. Traders can also access financial markets including foreign exchange, indices, commodities and CFDs while MetaTrader 5 offers technical analysis, copy trading and automated trading.
The Benefits of MetaTrader 4 and MetaTrader 5
MetaTrader 4
MetaTrader 4 is sophisticated in its function as it is capable of automating your trading by implementing algorithms that can open or close positions according to parameters which have been pre-set.
What’s more, the platform can be customised, meaning traders can apply and follow their own individual trading needs and preferences via the platform.
The app’s comprehensive Forex trading capabilities on commodities, indices and even cryptocurrencies has made it the go-to platform for those traders keen to exclusively explore the Forex market.
MetaTrader 5
Traders using MetaTrader 5 can utilise trading robots known as Expert Advisors which can operate without the presence of the trader, by performing trade operations and monitor prices courtesy of an underlying algorithm.
MT5 can also transfer funds between accounts, features a strategy tester and boasts updates on all the latest global news and events.
The Main Differences between MetaTrader 4 and MetaTrader 5
There are several differences between the two platforms, with MetaTrader 4 and MetaTrader 5 offering a variety of functions to users. Despite MT5 following MT4, this was never designed as an upgrade as is sometimes the perception but instead a tool created to allow traders to explore alternative options and processes
In the main, while MT4 was created in order to trade Forex, MT5 was built to aid trading in non-Forex CFDs with greater ease. MT5 also features depth of market functionality and allows swifter back testing than MT4.
While MT5 lets traders use multiple asset classes with multiple accounts using more than one currency, it also allows users to create more than one trading account. MT5 also allows limits to be placed on conditional orders, helping traders to take more control over stop-loss orders.
Comparing the two, MT5 has more technical indicators, timeframes and graphical objects while it also boasts an economic calendar and community chat function.
Which Platform will Suit your Trading Preferences?
The two platforms offer different functions for different aims. So, for the traders who wish to focus on Forex, then MT4 would be the right choice to make, both for seasoned traders and those looking to learn and explore. Reliable and efficient, MT4 is easy to navigate and features a number of analytical tools.
However, for traders wishing to explore a broader range of trade options including stocks, futures and other financial markets, then MT5 is the most suitable option. With superior algorithmic trading capabilities and advanced technical analysis tools, MT5 allows traders to pursue a diverse range of trades and moves beyond simply Forex.
The Importance of Research before Trading
If you are new to trading and deciding which platform will match your needs, it is imperative you do thorough research in order to make a smart decision based on knowledge and authority.
When it comes to MetaTrader 4 and MetaTrader 5, both come as demos which is ideal if you are looking to familiarise yourself with the tools before coming to a choice and proceeding with your new trading journey. Utilising a demo means you can navigate real-world market examples without the risk associated with such moves. This is useful as it can teach you how different moves can affect trades and how to react in different situations.
Summing Up
Overall, MetaTrader 4 and MetaTrader 5 are useful trading tools offering several functions and ultimately the choice of which platform to utilise comes down to the individual and the specific requirements and aims they have relating to trading.
It is important to decipher the similarities and key differences between MetaTrader 4 and MetaTrader 5. Having a strong knowledge of each one will help you to navigate different markets with their help. As the world of trading continues to develop and evolve, the two tools remain important for traders both new and experienced.