World’s most popular trading platforms are MetaTrader 5 (MT5) and MetaTrader 4 (MT4). Millions of traders worldwide use either of the two for their trading decisions.
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Developed by the world’s most popular trading platform, MetaQuotes Software Corp., millions of traders use them daily and enjoy superior service. But what is the difference between these most efficient trading tools, which platform is better for you?
What is a MetaTrader 5
MetaTrader 5, introduced in 2010, is the go-to platform for modern traders looking for an edge. It surpasses MetaTrader 4, in speed and efficiency, offering access to a wider range of markets, including Forex, stocks, indices, commodities, and cryptocurrencies.
With advanced features like technical and fundamental analysis, trading signals, algorithmic and copy trading, and trading robots, MT5 is built for advanced traders who want to maximize their trading potential across multiple asset classes.
What is a MetaTrader 4
MetaTrader 4, launched in 2005, has long been a favorite platform for Forex traders. It’s easy to use and offers some customization, but it’s mainly designed for Forex trading and doesn’t support the wide range of assets now available. Compared to the newer MetaTrader 5, MT4 lacks the advanced technology and flexibility needed to efficiently manage today’s diverse markets.
What are the differences between MT5 vs MT4?
MT4 is forex-focused while MT5 is all-in-one for every trader who wants to explore the global financial markets needs. Based on technical indicators, timeframes, charting tools, and trading orders, here are the differences between the two channels:
Technical indicators
MT5 offers 38 built-in technical indicators, which give traders more detailed insights into market trends. It also provides access to a wide range of additional custom indicators, both free and paid, which can be useful for more advanced trading strategies.
On the other hand, MT4 comes with 30 built-in indicators and offers access to about 2,000 free custom indicators and over 700 paid ones. While MT4’s features are enough for basic analysis, it doesn’t have the advanced tools that MT5 offers, making it less ideal for those looking for more sophisticated trading options
Timeframes
MT5 offers 21 different timeframes for viewing price data, ranging from minutes to months. This wide variety allows traders to analyze their assets more deeply and tailor their strategies.
In comparison, MT4 provides 9 timeframes, which cover basic intervals from minutes to months. While these are sufficient for most trading activities, MT5’s broader selection gives traders more flexibility and detail in their analysis.
Simplicity
A beginner who wants to dive into trading would find MT4 useful because of its easy to understand interface whereas MT5 is designed for advanced traders who have sufficient knowledge of trading indices, cryptocurrencies, forex, and commodities among others.
Charting tools
MetaTrader 5 (MT5) offers 44 different drawing tools that help traders analyze and predict price movements more accurately. These tools include geometric shapes, channels, and advanced tools for Gann, Fibonacci, and Elliott wave analysis, whereas MetaTrader 4 (MT4) provides 31 drawing tools, including basic lines, channels, and some Gann and Fibonacci tools.
It is important to note that while MT4 has enough tools for standard analysis, MT5’s larger selection is better suited for traders who want to explore more advanced analysis.
Speed
MT5 is more suitable in fast-moving markets compared to MT4 which is slower and may not provide the needed results in the same market where MT5 can cope with.
Economic Calendar
While Traders using MT4 have to rely on external sources to keep track of financial news because of the unavailability of an integrated Economic Calendar, MT5 has a built-in Economic Calendar that gives traders real-time information and helps traders stay updated on news that can affect prices, making it easier to make informed trading decisions.
Conclusion
Regardless of the superiority of MT5 over MT4, both support Demo trading. They both allow you to try trading in real-life market conditions without the risk of losing capital.
It is also very important to consider factors such as the availability of educational materials, support, and users’ reviews when choosing a broker. Also, choose a broker that supports both platforms in case you want to upgrade from MT4 to MT5 when you have fully understood MT4 fundamentals.
