Whether you’re a newbie or experienced trader, you surely have heard of trading platforms, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and MetaQuotes Software. The company MetaQuotes develops software applications that are used in exchanges, banks, and brokerages. They are the ones who developed two of the most popular trading platforms nowadays – the MT4 and MT5.
Both of these trading platforms boast an incredible number of trading tools and very fast trade execution. Most brokerages nowadays are also offering this software, which just proves how popular it is among traders, especially with its ability to view live charts and market prices as well as placing orders and managing multiple assets in a single account.
But if you are still not sure which trading platform to use on your trades, check out this comprehensive comparison of MT4 and MT5.
Released to the public on July 1, 2005, MetaTrader 4 is an easy-to-use trading platform ideal for Forex traders. On June 1, 2010, another trading platform was released. This time it covers more assets and contains more technical indicators and tools.
It is hard to step away from your computer if you are trading, especially if you are planning to buy or sell an asset. However, with MT4 and MT5, you are given the freedom to step away from your monitors because this software is made available for android and iOS devices. Therefore, you can trade on the go, 24 hours a day.
Some of the functionalities offered in the mobile app version of these trading platforms include a full set of trading orders, quote charts, most-used analytical tools, monitoring of the account status, and the buying and selling of instruments.
- Another very strong feature of MetaTrader trading platforms are its analytical objects.
- Both MT4 and MT5 allow customization of the interface to better suit the needs of traders.
- MT4 has an interactive chart with nine timeframes. MT5 has 21 timeframes that you can choose from.
- MT4 has 30 built-in technical indicators while MT5 has 38 built-in technical indicators. For drawing tools, MT5 has more of it like Elliot wave drawing tools and Fibonacci studies. In total, MT4 contains 31 graphical objects while MT5 has 44.
- Both trading platforms have comprehensive functionality on their audio as well as the latest financial news. This is very helpful if you are trading multiple markets. Another addition to MT5 is the economic calendar, something that isn’t found in MT4. It is attached at the bottom of the chart which alerts traders whenever there is high-impacting macroeconomic news that is about to affect the price movements in the market.
- One main difference between these two trading platforms is that MT5 has a depth of market (DOM) which allows clients to see where the bids and offers are being priced in the market.
Different traders have different trading needs. If you want a straightforward approach to trading, then you need MT4, especially when trading Forex. But if you want to trade in multiple markets, you will need to have a more comprehensive trading platform which is MetaTrader 5.