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MT4 vs MT5 Which Platform to use?

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When it comes to trading, many different options are available to you. You can choose from a variety of different platforms, each with its own unique features. The MetaTrader platforms are the most popular among traders thanks to their easy-to-use interface that allow beginners and traders with experience to operate the market, plus more benefits that their tools give. However, it is essential to know which one is right for you. It is also essential to know if your device supports these platforms; that’s why you must ensure that the mt5 download is available. This blog post will compare MT4 and MT5 and help you decide which platform is right for you.

What is MT4?

MT4, also known as MetaTrader 4, is a trading platform developed by Russian company MetaQuotes Software Corp in 2005. It has become the industry standard for retail traders thanks to its user-friendly interface and various features such as charting tools, technical indicators, and automated trading options.

The MT4 platform offers traders the ability to trade in the Forex market. It also offers a variety of tools to help traders make informed decisions, including charting tools, technical indicators, and more. Additionally, MT4 offers automated trading options, which allow traders to automate their trading strategies. MT4 is available on a variety of devices, from desktop computers to mobile phones, for your convenience. Additionally, a web-based version can be accessed directly from your browser.

What is MT5?

MT5, also known as MetaTrader 5, is the newer version of the MT4 platform released in 2010. It offers all the same features of MT4 with some added benefits, such as more timeframes, more technical indicators, and additional order types. MT5 was created for investors to trade Contracts for Differences, stocks, and futures. MT5 is a trading platform where you can trade multiple assets and access professional technical and fundamental analysis tools while using any browser. MT5 also has great mobile device compatibility.

The biggest difference between the two platforms

The primary distinction between the MT4 and MT5 platforms is their respective functions and purposes. As we alluded to earlier, MT4 was designed specifically for Forex trading while MetaTrader 5 was created mostly for other assets.

At first glance, it would be hard to spot any significant style differences between MT4 and MT5. After all, they both were designed by the same company.

These platforms provide plenty of trading indicators and tools, but it mainly depends on the broker you’re using. The standard version of MT4 comes with approximately 30 built-in indicators, though it is highly customizable to users’ needs.

If you search online, you’ll find at least a few thousand free indicators and hundreds of paid ones. These include high-low indicators, Renko indicators, chart group indicators, and more. The same is true for MT5–you can find many predetermined indicators or create your own custom ones.

Forex charts

Forex charts on MT4 or MT5 can be customized to your preferences with dozens of time frames, various chart types, and the ability to overlay different assets on one chart. Both platforms offer various technical analysis options, including trend lines and Fibonacci retracements.

As for order types, both platforms offer market orders, pending orders (buy limit, buy stop, sell limit, sell stop), and trailing stops. In addition to these standard order types, MT5 also offers the option for hedge orders.

MT4 and MT5 have advanced features, such as automated trading via Expert Advisors (EAs). These EAs can fully automate your trading strategy or send notifications when certain conditions are met.

Programming languages

MT4 uses a programming language called MQL4, while MT5 uses MQL5. The two languages are similar in syntax and structure, but MQL5 is more advanced and offers additional features such as object-oriented programming and access to economic data calendars. MQL5 is not only more efficient, but it is also easier to use. MQL5 lets traders customize and adjust their scripts as they see fit. Also, most programs created for MT4 aren’t compatible with MT5.

Trading instruments

MT4 offers a variety of trading instruments, including Forex pairs, stocks, commodities, and indices. MT5 offers all of these instruments, futures, and contracts for difference.

Contracts for difference (CFDs) are financial derivatives that allow investors to trade the price movements of assets without actually owning the underlying asset. For example, you can trade the price of gold without having to take physical possession of the metal.

Futures are agreements to buy or sell an asset at a specific price on a specific date. Futures contracts are standardized and have strict regulations, making them less risky than CFDs.

MT4 and MT5 offer a variety of order types to suit your trading needs. With MT4, you can place market orders, pending orders (buy limit, buy stop, sell limit, sell stop), and trailing stops. MT5 also offers the option for hedge orders.

In addition to these standard order types, MT5 offers the option for futures contracts. Futures contracts are agreements to buy or sell an asset at a specific price on a specific date. They come with strict regulations and are less risky than CFDs.

Trading automation

MT4 and MT5 offer advanced features, such as automated trading via Expert Advisors (EAs). These EAs can fully automate your trading strategy or send notifications when certain conditions are met, including technical analysis of price data and opening and closing positions on specific instruments. Comparing the Expert Advisors of these two firms ultimately comes down to the programming language.

MQL4 has been around for a long time. It is older than MQL5. This means that there are more pre-written scripts and codes for MQL4 that you can use to create your Expert advisors.

However, some people might find MQL5 to be a simpler language. In that case, creating your scripts might be a little easier.

Conclusion

It is concluded that both MT4 and MT5 offer a range of customizable charts, technical analysis options, trading instruments, and order types. While MQL4 has more pre-written scripts for automated trading, some may find that MQL5 is a simpler language. Ultimately, it comes down to personal preference and trading style. Each platform offers its own unique set of features and capabilities that can enhance your trading experience. It is ultimately up to the trader to determine the best suits their needs.​

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