Both MT4 and MT5 have very similar interfaces, but the latter has more features which facilitates a more efficient trading experience. Read on and find out the differences between the two platforms and how one can make their MetaTrader platform selection.
First of all, MT5 allows for more instruments in more financial markets to be traded on the platform. A trader would be able to trade cryptocurrencies, stocks, options, futures, and more on MT5. whereas a majority of instruments available on MT4 would be forex-based. This is because MT4 has a hard limit of 1024 on the number of symbols that can be listed. MT5, however, has no such limit and can accommodate hundreds or even thousands of symbols.
However, the MT4 platform is specially designed to cater forex traders’ needs and therefore, it might be more recommendable for people specially looking to trade forex to consider MT4.
Being the upgraded version of the MT4 platform, MT5 gives traders more flexibility to customise their trade and charts with a wider selection of charting tools and technical indicators. With that said, more tools as well as technical indicators to choose from provides traders with the ability to perform more advanced technical and fundamental analysis that will help them make better decisions about their next steps.
MT5 offers 44 graphical objects like Elliott tools and geometric shapes as compared to MT4 which has only 31 of them. Having access to more charting tools could assist traders in making an informed prediction about future price movements of an asset.
In addition to wider charting capabilities, charts can also be represented in 21 timeframes in MT5, more than the number of timeframes MT4 charts can be represented in. In MT5, the time frames available are minute (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly (W1), and monthly (MN), whereas in MT4, the available time frames are minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN).
Other than providing more charting tools, MT5 offers 38 in-built technical indicators as compared to MT4, which provides 30. MT5 traders can simply use the massive number of technical indicators available on the platform to help themselves gain more insights about the market and make more informed trading next-step decisions.
On top of having more technical indicators, built-in reports can also be found on the MT5 platform to help traders better assess their trading strategy’s effectiveness. The metrics found in these reports include the total number of transactions that have already happened, average profit and loss as well as the expected value the trader is expected to earn.
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MT4 offers its users 4 pending order options whereas MT5 provides its users 6 pending order options in total. Refer to the following for the list of pending orders provided by the two platforms:
MT5: buy stop, buy limit, sell stop, sell limit, buy stop limit and sell stop limit
MT4: buy stop, buy limit, sell stop, and sell limit
Pending orders are key and experienced forex traders will not recommend trading without them. A pending order refers to a request made by a trader to a broker, indicating at which price level they would like the position to open or close, and they help traders automate when they want to enter or exit an order in anticipation of certain price movements. This helps forex traders mitigate risk and manage their capital.
In MT5, there is also a built-in economic calendar which helps to keep track of macroeconomic events in real-time. Notifications can also be set to inform platform users if it is forecasted that there is a major shift in the market due to a particular event.
Both MT4 and MT5 have their own pros and cons and traders could consider deciding their metatrader platform based on the financial instruments they are planning to trade. Both versions are available in mobile and desktop, except for iOS platforms, and users interested in trading with a MetaTrader do not have to worry about not being able to access the platform’s benefits anytime and anywhere.
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