The advent of trading platforms ushered in the popularity of trading, allowing more people to access CFD and financial forex trading. These platforms play the role of a workspace where traders spend most of their trading time. This article seeks to compare MetaTrader 4 and MetaTrader 5.
About MetaTrader 4
Initially, MetaTrader 4, or MT4, was designed to facilitate retail forex trading. The platform is mobile, user-friendly, and multi-functional, making it popular among traders.
MT4 features an intuitive user interface that’s not strained by substantial information, buttons, and panels. Some of its functions are copied in the toolbar menu.
Features of MetaTrader 4
It is a single-threaded 32-bit operating system platform. While MT4 can operate well on 64-bit operating systems, traders may struggle with compatibility issues.
- Traders can use it to trade currencies, bonds, shares, CFDs, cryptocurrencies, and commodities.
- MetaTrader 4 supports over 30 languages
- MT4 developers offer massive technical and marketing support, which increases the platform’s popularity. They (the developers) strive to upgrade and improve the platform’s code for enhanced user experience. Further, MT4’s license is cost-friendly for both brokers and traders.
MetaTrader 5 (MT5) is an advanced multiple asset platform that was first launched in 2010 with the hope of replacing MT4. However, that was not to be, and MT4 remains more popular than the advanced MT5.
Comparing MetaTrader 5 and MetaTrade 4
Before choosing a trading platform, it’s crucial to understand how each of them works. Doing so helps you determine which of them is ideal for your needs. Here are some of the things you should consider when comparing MetaTrader 5 and MetaTrader 4 platforms.
MT5 operates faster than MetaTrader 4. While MT5 is a fully-developed multiple threaded 64-bit platform, MT4 is a single-threaded 32-bit platform that comes with a 2GB limit which stretches to 4GB if you utilize it on a 64-bit OS. MT5 is specially designed to operate efficiently on 64-bit operating systems while MT4 works well with 32-bit operating systems.
To install MT5 users require the configuration execution file. MetaTrader 5 can also operate well on 32-bit operating systems. While MT4 can work on 64-bit operating systems, it will be slower than on 32-bit OS.
Both MT5 and MT4 come with different server formations. MetaTrader 4 comes with a single dedicated server with restrictions barring it from communicating with different servers. However, MT5 discharges tasks to other servers, facilitating collaboration and promoting cooperation. The platform can accomplish hardware utility and generate better results due to its connection with different servers.
MT5 leverages four main servers, which are:
MT4 leverages only one server engine. Software exit reports on the MT4 platform are only accessible in HTML format, while on MT5 they are accessible in both Open XML and HTM table formats.
MT4 is simple to use and features approximately 33 analytical elements and 30 inbuilt indicators. It supports four different versions of pending orders, two versions of market orders, two stop orders, a dragging stop function, and two execution modes. Navigating through MT4 is easy, which is why many traders prefer it instead of MT5.
MT5 features 38 built-in indicators and an independent economic calendar section with various features such as:
- News event
The MT5 platform comes with six different pending order types, data on time, depth of market (DOM), and exchange sales. Analytical components that facilitate identification of financial instrument cost trends are 31 on MetaTrader 4 while MT5 comes with 44.
These components aid the detection of resistance or support levels and cycles, and build channels. Traders can also recognize a variance from the log files. Log files on MetaTrader 5 are compressed automatically, which is not the case on MT4.
Traders using the MT5 can acquire codes from the code substructure. The platform supports zipped folders which traders can store in their local drives. MT5 supports partial orders. For example, suppose the maximum trade volume is achieved, but the trade isn’t complete traders can choose partial edit to facilitate canceling of the remaining volume.
To determine the ideal platform, it is critical to evaluate your trading preferences and habits. Novice traders prefer MetaTrader 4 for its simplicity and more minor features. However, experienced traders prefer MT5 for its wide range of features and versatility.