The MetaTrader trading platform virtually rules over the world of retail forex and CFD trading. It comes in two versions: MT4 and MT5. It’s mostly up to brokers to choose to offer both trading platforms to their clients, or just one of them. Of course, MT4 is only available through a Whitelabel agreement on an existing Brokers license, since MetaQuotes discontinued sales of the MT4 Server license.
In case you have both to choose from, selecting either one of them could prove to be a difficult task. Although choosing the upgraded version is a logical choice for most software, this is not the case with MT4 and MT5. Some of the changes in the MT5 version have also made it less appealing to traders. Nevertheless, the later version has some features which may attract a certain section of traders and it is important to understand this to make an informed decision.
The MT4 interface is simple and uncluttered. It offers unlimited customization. However, the MT5 comes with some more intuitive features and better ones at that, making it a superior choice on this parameter. The layout of the MT5 is almost similar to that of MT4 but it offers additional timeframes and services. MT4 offers 9 timeframes, whereas MT5 has more than 21. A few buttons in the MT5 are also placed at areas that are different from where they are found on the MT4.
In MT4, a trader can do a trade in a single cliсk, which makes it easier to use than the MT5.
Here again, MT5 comes across as a better choice. It’s a 64-bit, multi-threaded platform. MT4 is a 32-bit, mono-threaded platform with just a 2GB memory. The MT5 functions excellently on 64-bit operating systems, compared to MT4 that works on a 32-bit operating system. MT5 runs faster on 32-bit operating systems, which is not the case with MT4.
Only a limited numbеr of сhаrtѕ саn be ореnеd in MT4, but you can open an unlimited number of charts in MT5. Even though the MT5 has an edge here, the big question is – how many traders will try to open a large number of charts simultaneously? So this may or may not be an added advantage, depending on how you look at it.
MT4 is an older version as it was launched in 2005 and has proved to be a robust trading platform when it comes to automated and algo trading. Programming on the MT4 platform is easier compared to MT5. It has less number of bugs. Trading strategies can be executed more easily in MT4 than MT5.
In Metatrader 5, the back testing function gives a clear advantage over the MT4. Trading strategies can be executed, tested and optimized much faster in MT5, which saves a lot of time if you want to test a lot of trading strategies. You can simultaneously conduct multi-currency pair back testing. Together, this can speed up back testing procedures immeasurably.
However, the biggest factor that dissuades traders from using MT5 is that the Exреrt Аdviѕоrѕ (EAs) that worked on MT4, do not work on MT5. This is as a result of the changes in the programming languages. While the MT4 environment relies on coding with MQL, the MT5 is a mixture of C# and Visual Basic. You therefore have to code your EAs for the MT5 from scratch.
The MT4 trading platform doesn’t allow traders to do multiple trades in the opposite direction with the same symbol. Multiple positions can be created in MT5 in opposite directions, which is a big advantage for traders who love to hedge.
Order Management Capabilities
MetaTrader 5 has a superior order management capability than the MT4. When a trader has an open position in a new trade, they can have pre-defined stop-Loss and take-Profit levels for each position. We should also mention that there are more order types in the MT5 than the MT4.
So, what trading system should you choose?
The answer is not very difficult. If you need to back test a lot of strategies and comply with the US regulation or if you are seeking access to stock and commodities exchanges as well, Metatrader 5 can be an obvious choice for you or else there is no reason to choose it.
Based on feedback we have seen in the market, MetaTrader 4 might have some annoying features but it works well and allows traders to stay ahead in the game of trading. They can visualize charts and execute trades quickly. At the same time we would also like to point out that most traders feel that there is no real and strong reason to migrate to MT5 if you have already been using MT4.MT4 or MT5 : Which One Should You Choose? Click To Tweet