Novice traders often ask themselves which trading platform is best for them, MetaTrader 4 or MetaTrader 5. Why is this happening? There are many articles that try to compare the two trading solutions, but they do not give a complete picture, but only focus on the advantages of one or another software. In this article, we will conduct a full-fledged comparative analysis in order to once and for all determine the similarities and differences between the two platforms designed to work in the financial markets.
Global functionality and speed
MT4 is focused exclusively on working with currency pairs, contracts for difference and other Forex market instruments. We should note that MT5 is a multi-asset platform that allows you to work, in addition to Forex, – for example, with the stock market. Simultaneous work on several exchanges becomes available.
In terms of the speed of work, the fifth version definitely wins. It is a fully functional 64-bit multi-threaded platform. It can run on 32-bit operating systems as well. As many as 4 dedicated servers help to process data faster. They target:
- Reserve copy.
If we compare in this context, which is better – MT4 or MT5, then the earlier development loses, because it has only one dedicated server, which, moreover, is limited to other servers in connection.
MT4 is a 32-bit single-threaded platform with 2GB of memory. If you use it on a 64-bit operating system, then the memory increases to 4 GB. The speed drops when the software is used on a VPS with multiple CPU cores.
Strategies, robots, programming languages, analytics tools
MQL4 and MQL5 are programming languages. We should say that they are incompatible with each other. MetaTrader 5 features enhanced object-oriented logic and an advanced test system. Opportunities are used to check the efficiency of Expert Advisors based on historical data. At the same time trading with MT5 expert advisor is less complicated than with MT4. Even though it is not required to be a programmer or specialist to use this feature.
As for analytical tools, there are only 33 of them in MetaTrader 4. The fifth version of the trading platform offers a wider assortment: 2 types of market orders, 6 types – pending orders. There are 2 different execution modes, 2 stop orders and a trailing stop function. An economic calendar with an extended number of options is placed in a separate tab. These are forecast, schedule, news, impact, previous value. Access to the depth of the market (Level2, depth of market) has been implemented. It also presents data on time and sales on the exchange.
Even in the latest version, you can create Expert Advisors using the strategy generator. To create a simple version of it, decide on the module of trading signals, trailing stop and money management. When the settings are set, the instruments are connected to the new Expert Advisor during the creation of the robot through the MQL5 Wizard.
You can choose ready-made automated versions of the programs. They can implement different trading strategies based on several different entries. The result is that traders receive very accurate market analysis and forecasts.
The tester is considered multicurrency and is used on several financial instruments at once. In this case, the charts of the assets selected for work should remain open. The history of quotes is saved only for the one-minute timeframe. The test report in the new version has more parameters. For example, basic statistics are visualized as graphs. The multi-core effect allows tests to be performed using multiple PCs.
Indicators, timeframes, order locking
There are 9 time intervals in MetaTrader 4: minute – М 1, 5, 15, 30; sentries – H 1 and 4; daily D1, weekly W1, and a period of one month – MN. The new version, MT5, has a lot more timeframes for analysis. In addition to those listed above, added M – 2, 3, 4, 6, 10, 12, 20; Н – 2, 3, 6, 8, 12. If you right-click on the chart of the selected asset, you can set any non-standard timeframe.
In the early version, there are 30 or 50 indicators built into the platform, indicating the exact points of entry and exit. While in the latest development there are 38 of them. When performing various operations in MT4, a sound signal is given, which contributes to more comfortable trading. In MT5, there is still the possibility of opening orders without locking.
The bottom line
Which trading platform to use is a question based on the preferred functionality of the software. The updated program options create a comfortable trading environment. But MT5 benefits from progressive solutions and great potential.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.