Updated: June 17, 2021
A trading platform is basically a workspace for traders, their work environment. The quality of trading depends on its functionality and convenience. Many market participants prefer to trade using the Metatrader platform. In this article, we’ll take a look at the two versions of this software – MetaTrader4 and MetaTrader5.
MT4 has been on the market for more than 10 years, many traders still opt for version. We have already reviewed this platform in our previous article, so let’s focus more on Metatrader5.
MT5 is not some modification of the MT4 platform. It has additional features and was created using a completely different programming language. However, the developers did leave the same parameters and the already familiar interface with the same blocks, like in MT4.
The platform turned out to be user-friendly with a few new features. However, MT5 is far from perfect, and there is still much room for improvement. Despite its shortcomings, the platform still has good potential
- The developers added the DOM (depth of market) to the MetaTrader5 platform. In the terminal, not only the price of a trading instrument is now visible, but also the trading volume, which has become a handy feature, that allows traders to make better trading decisions and evaluate the market situation.
- Novice traders can take advantage of the built-in economic calendar, which the platform now offers. Using the calendar, traders can monitor the release of important publications, economic indicators and other statistical data.
- The technical analysis has also become more convenient with the updated version of the platform. The developers updated the list of existing tools and added new ones. For example, the application of Elliott waves for wave analysis is now available with just one click. MetaTrader5 has more built-in indicators and they can be added to the chart using a simplified system.
- CodeBase library contains a database with free trading robots. Logging into the trader’s personal account can now be done directly through the platform, using the “Company” button.
- MT5 has advanced options for managing orders, and traders can create their own indicators. In addition, MT5 allows you to track MT5 data of real volume, while MT4 only provides data on the tick volume.
- Now, about a couple of major disadvantages. MT4 advisors are incompatible with the new version of the platform. Besides, MetaTrader5 does not allow hedging/locking of positions.
Difference between the two platforms
First of all, the platforms were developed using different programming languages. MetaTrader5 uses MQL5 which is incompatible with MQL4 of MetaTrader4. Also, in MT5 the number of timeframes was expanded from 9 to 21. Both platforms include tools for technical analysis, but while MT4 offers 30 indicators, MT5 offers 38. In the 5th version, the strategy tester is more advanced, which allows faster and more effective analysis of various trading strategies.
In the fifth version, developers added a special store – MetaTrader Market, where a trader can purchase robots, indicators and trading applications. MT4 doesn’t have this feature. MT5 provides sound alerts and push notifications, which can be sent to your phone or received via e-mail.
Experienced traders, accustomed to MetaTrader4, may encounter certain inconveniences when switching to MetaTrader5. Many tools do not work here, many new features appear during trading, and this can negatively affect both the emotional state of the trader and his trading performance. Therefore, before switching to MT5, we recommend you consider all pros and cons.