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Aug 24, 2021

Which is better MT4 or MT5 ?

When looking for a trading platform traders have a choice between MT4 and MT5.Both trading platforms are reliable but ultimately, they have different functionalities.So we shall take a more in-depth look into how the two differs and evaluate the merit of whether one outweighs the other.

What type of traders do you want to attract?

As underlined in the afore mentioned paragraph the biggest difference stands from what kind of traders do you wish to attract to your platform. If the platform will attract more

Forex traders then MT4 would be the answer to your question as its features strongly caters for such functionality. In comparison MT5 has broader features for catering for CFD, stock and futures trading. Therefore, it accommodates for multi asset trading and may not necessarily be as attractive to user trading only in forex.

Comparing Meta trader 4 and Metatrader 5

MT4 offers 4 types of execution modes (pending orders) to buy or sell a market at a predefined price in the future whereas MT5 offers 6. The additional two provided by MT5 are namely the buy/sell stop limit. This is widely popular with experienced traders but less likely to be used by beginners.

In terms of execution modes MT5 additionally offers a supplementary exchange execution, which allows orders to be sent to an external trading system. This is not permissible in the MT4.

For traders having access to information is key for decision making, an element that MT4 efficiently facilitates by allowing its traders to have a Fix API Integration. Unfortunately, it is not a feature offered in MT5.The two platforms further differentiates on the netting aspect, whilst both offers hedging only MT5 offers netting which helps in mitigating risk. Netting would be particularly useful for example if a trader entered 1 long position in one lot and then entered a second lot in the same market, the initial order would be consolidated into 1 position, instead of two positions. Other benefits that flows from MT5 includes chat function,64 bit in contrast to 32 bit and funds are transferable between accounts.

Another key difference is in the number of technical indicators provided by each platform, MT4 offers 30 whereas as MT5 offers 38 respectively.MT5 gains some bonus points on the additional number of wave drawing tools it brings to the table.

Other points that one must not disregard is that MT4 and MT5 are built in programming languages serving to address traders’ requirements for writing trading programs. Based on this trader are able to create algorithms to offer expert advise. Hence it is significant to take note that MT5 has an improved strategy tester for Expert advisers which is optimized with its agent manager feature.

Other contrasting features between these two also stems from different timeframes.MT5 supports 21 timeframe which is relatively more than the 9 traditional timeframes supported by MT4, but then again the basics provided for the MT4 is adequate for the basic trading.

 

Comparison of MetaTrader 4 and MetaTrader 5:

 

МТ4

МТ5

Order execution policy

Fill or Kill

Fill or Kill

Immediate or Cancel

Return

Hedging/Netting

Only Hedging

Hedging and Netting

Number of types of pending orders

4

6

Depth of Market

No

Included

Technical indicators/chart objects

30/31

38/44

Time frames

9

21

Strategy tester

Mono-threaded

Multi-threaded. MQL5 Cloud Network

Markets

Forex

Forex/Stock exchange market (stocks, bonds, futures, options)

Economic calendar

No

Included

Built-in MQL5 chat

No

Included

In Summary, whilst MT5 may have been better optimized for multi asset trading it does not mean MT4 is redundant .Each platform respectively has their own set of pros and cons .The choice between the two ultinately comes down to preference and case of use. Certain features available in MT5 may be irrelevant to a startup trader or one looking to trade only in forex. Therefore, when selecting a particular platform, you need to ensure that it captures the goal of your business. Our team is here to help guide you on the best option .Contact our team today for a free consultation info@forexcs.com and we will assess your requirements and provide guidance on the best fit.

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