Many forex traders are usually burdened with many questions regarding which of the many available trading platforms is best suitable for them. The decision making is further complicated with the MT4 and MT5 trading platforms. Since its inception in 2005, MT4 has become a favorite for many, leading to it being set as the standard market trading platform.
However, many traders will tell you that the MT5 platform which was released in 2010, is the way to go. This has led to frequent questions from various traders asking which is the most suitable forex MetaTrader platform; the MetaTrader 4 or the MetaTrader 5.
In this article, we are going to highlight some of the similarities and differences between the two trading platforms.
Similarities Between MT4 and MT5
MetaQuotes Software Corporation developed both MetaTrader 4 and 5. The MT4 was created in 2005 while the MT5 was built in 2010.
Another similarity between these two platforms is that they allow the trader to trade financial markets regardless of where they are globally.
The Differences Between the Mt4 and the Mt5 Trading Platforms
While the forex MetaTrader 4 only provides the trader with nine timeframes, the Mt5 usually has around 21 timeframes. The minimum timeframe in Mt4 being 1 minute and the highest being one month. The timescale for the MT5 platform ranges from I minute to annual charts, which gives the trader more room to analyze the market.
The Mt4 user interface is usually straightforward and friendly as compared to the Mt5 user interface. This has been one of the primary reasons why most beginners prefer the Mt4 platform for their trading. While the Mt5 platform can be a bit complicated for the novice beginners, the Mt4 gives interface customization options according to one’s trading preferences.
Internal Funds Transfer
You will find this feature in the Mt5 platform but will not find it in the Mt4 forum. The internal funds’ transfer allows the trader to transfer funds from one account and deposit the same in another account from the Mt5 platform itself.
Whereas Mt5 comes with an inbuilt market depth function, the Mt4 platform does not support this function. The importance of the market depth feature is its ability to bid and offer financial securities at different prices. It also reveals the number of buy and sell orders open for a specific security or currency at varying prices.
Mt4 usually provides the trader with four types of pending orders, namely; buy and sell limit, and buy stop and sell stop, while Mt5 has six types of pending orders, namely; buy and sell limit, buy stop and sell stop, and buy stop and sell stop limit.
The high number of pending orders in Mt5 makes it easier to work with. This is because you do not have to spend all your time looking at the charts, not to miss trades. With many pending orders, you can execute your trades anytime you desire without missing out on many exchanges.
Financial Assets Trade
The MT4 trading platform was initially developed for traders to trade in the forex market. The MT5 platform, which is basically an advanced version of the MT4 allows the trader to do forex trades and trade in other different financial markets such as CFDs and stocks.
Whereas the Mt4 has only one dedicated server that usually has communication restrictions with the other servers, Mt5 can distribute jobs to other servers. This, working together with other servers, provides synergy, leading to improved results and making hardware utility achievable. This ultimately leads to resource optimization.
The differences between the Mt4 and the Mt5 platforms are numerous. The question of which one is better than the other can only be dealt with if you understand all these differences. Comparing the two will help you a great deal when it comes to choosing the best platform, depending on your trade preferences.