As a trader, there are a few factors that help determine whether you will be successful or not. Some of these factors are the forex broker that you use, the amount of leverage you use, your skill and expertise, and the trading platform that you use. The most common trading platforms are those from Metaquotes. This article will compare Metatrader 4 and Metatrader 5.
MT4 was the first product from Metaquotes. It is offered by most brokers and it can be accessed through a mobile application, a desktop application, and a web application. It is an easy-to-use platform that has several important features like inbuilt indicators, access to expert advisors, and access to strategy testers. The MT4 is commonly used by new unsophisticated traders.
This is the next version created by Metaquote. It is an advanced platform that has additional features than the MT4. Some of the features it has are the following.
First, it has more timeframes than the MT4. The MT4 comes loaded with nine timeframes while the MT5 comes loaded with 21 timeframes. The additional timeframes are very important because they help you do better analysis.
Second, the MT5 comes loaded with more technical indicators. These are usually more advanced indicators and are usually recommended to more experienced traders. Some of the indicators found in MT5 and not in the MT4 are: Adoptive Moving Average, Fractal Adaptive Moving Average, Triple Exponential Moving Average, and Average Directional Movement Index Wilder. To use these indicators in the MT4, you have to download them and export them to the platform.
Third, the MT5 comes loaded with the economic calendar. The calendar is a schedule of the economic data that is expected to be released in a given day. Traders use the data in the economic calendar to determine the performance of the economy. Examples of data found in the calendar are employment numbers, inflation numbers, sentiment numbers, and manufacturing and industrial numbers. The MT4 does not come with a calendar.
Fourth, the MT5 has more ways to start pending orders. A pending order is one that directs a broker to initiate a trade once a certain price is reached. The MT4 comes with four pending orders such as buy and sell stop orders and buy and sell limit orders. The MT5 comes with these order types and two others. These are buy stop limit and sell stop limit.
Fifth, the MT5 comes with the ability of setting up a virtual platform. The virtual platform is mostly important for advanced traders who want to use their algorithms. In the virtual platform, you can select your ideal server and pay a small fee to store your algorithms. This service is available in the MT4 platform but the steps to access it is a bit longer.
While the MT4 and MT5 have their differences, they are all known to be very good for new and advanced traders. This is because of their popularity and their universality. The latter means that even if you move from one broker to another, you won’t have problems trading because you already understand how to trade using the platforms.