When it comes to trading in the financial markets, having the right trading platform can make all the difference. Two of the most popular platforms in the world of forex and CFD trading are MetaTrader 5 (MT5) and MetaTrader 4 (MT4). Both are developed by MetaQuotes Software and offer a wide range of features and tools to traders. In this comprehensive comparison, we’ll explore the differences between MT5 and MT4 to help you make an informed decision about which one suits your trading needs best.
1. Number of Supported Markets:
MT5: MetaTrader 5 is the more advanced platform and offers a broader range of financial instruments. In addition to forex and CFDs, it supports trading in stocks, commodities, and cryptocurrencies. This makes it a versatile choice for traders who want to diversify their portfolios.
MT4: MetaTrader 4 primarily focuses on forex and CFD trading. While it’s an excellent choice for forex traders, it has limited options for trading other asset classes.
2. Timeframes and Charts:
MT5: MT5 provides a wider variety of timeframes, including 2, 4, 6, and 8-hour charts, in addition to the standard timeframes offered by MT4. This flexibility can be useful for traders who employ different trading strategies.
MT4: MT4 offers a more limited selection of timeframes compared to MT5. It provides standard timeframes like 1-minute, 5-minute, and daily charts.
3. Technical Indicators:
MT5: MetaTrader 5 comes with an expanded set of technical indicators, including 38 technical indicators, 44 analytical objects, and 21 timeframes. This is a significant advantage for traders who rely heavily on technical analysis.
MT4: MT4 offers a respectable range of technical indicators (30+), but it falls short of the comprehensive selection available in MT5.
4. Programming Languages:
MT5: MT5 uses MQL5 as its programming language. MQL5 is more advanced and versatile than MQL4, the language used in MT4. It allows for easier coding of complex trading algorithms and custom indicators.
MT4: MT4 uses MQL4, which is still powerful but lacks some of the advanced features and capabilities of MQL5.
5. Hedging:
MT5: MT5 does not support hedging. This means that traders cannot open multiple positions in the same instrument in opposite directions. Instead, it uses a “netting” system.
MT4: MT4 supports hedging, making it suitable for traders who want more flexibility in managing their positions.
6. Backtesting and Strategy Tester:
MT5: MT5’s strategy tester is more accurate and allows for multi-currency testing, making it a better choice for traders who rely on backtesting their strategies.
MT4: While MT4 also has a strategy tester, it may not be as precise as MT5’s, and it doesn’t support multi-currency testing.
Conclusion:
In the battle of MetaTrader 5 vs. MetaTrader 4, the choice ultimately depends on your trading style and preferences. If you primarily trade forex and value hedging, MT4 might be sufficient. However, for traders who want access to a wider range of markets, advanced technical indicators, and sophisticated programming capabilities, MT5 is the superior choice. Consider your trading objectives, the assets you wish to trade, and your preferred trading strategies when making your decision. Some brokers offer both platforms, allowing you to test each one before making a final choice. Remember that the best trading platform is the one that aligns with your individual trading goals and preferences.