If there is one thing a trader fears, it is letting go of their prized tried and tested methods. When it comes to trading platforms, MetaTrader 4 (MT4) has long been a crowd favorite; with its trusty user-friendly interface packed with useful tools and features, the answer is clear as to why this is the case.
Even with the release of the much-improved MT5 in 2010, many traders still prefer its predecessor. So, what exactly are the differences of these two platforms?
Same Features, But Better
MetaQuotes Software Corp., the developer of both platforms, created MT5 with the goal of improving the tools it already offers on MT4. From instruments, processes, tools, and even customer service, MT5 boasts enhanced features as compared to its predecessor.
Diversified Financial Instruments
MT4 was developed with a specific audience in mind – Forex traders. MetaQuotes expanded their reach with MT5 in order to accommodate the interests and needs of traders who trade more than just Forex. Apart from it, MT5 offers a more diversified universal trading platform that includes stocks, futures, options, and bonds to the list, as well as connects traders to over 80 exchanges worldwide.
Expanded Pending Order Types
With more instruments to choose from, MT5 also offers a more expanded selection of pending order types. From MT4’s selection of buy limit, buy stop, sell limit, and sell stop, MT5 offers two additional pending order types, namely buy stop limit and sell stop limit, which act as stop orders for buy limit and sell limit pending order types, respectively.
Additional Technical Indicators and Timeframes
From 30 technical indicators and 9 timeframes on MT4, MetaQuotes increased it to 38 technical indicators and 21 timeframes, which allow traders to analyze more markets at the same time. With MT5,, traders are offered options with wider reach and accessibility in terms of market analysis than that of MT4.
Simultaneous Strategy Testing
One of the many handy features of MT4 is the Strategy Tester, where traders get to test their strategy on an Expert Advisor (EA) one currency at a time. However, this feature may be quite inefficient for traders who trade multiple currencies. With MT5’s Strategy Tester, clients who trade more than one currency at a time get to simultaneously test their strategies on an EA.
Enhanced Customer Service
Apart from the many improvements mentioned above, some changes are small yet very useful. On MT5, not only are its main features enhanced, but also allows traders to send and receive emails with attachments; a feature not available on MT4.
Here’s What’s New
MetaQuotes would not call the MT5 Trading Platform an upgrade without introducing new features. Among these are built-in components such as economic calendars and community chats, as well as additional order execution conditions, accounting modes, and transparency tools that brokers can significantly aid clients with their trade processes.
Trader Information Hub
As far as creating a more client-oriented service goes, MetaQuotes incorporated features that not only help traders reduce risks, but also share tips and experiences within the trading community. With the built-in economic calendar, traders have easy access to trading information and events beneficial to their trading, which they can discuss through the built-in MQL5.community Chat.
Additional Order Fill Policies
Whether it is a cancelled order that did not fulfill the required volume or another order on top of other offers, MT5 introduces two additional order fill policies: immediate or cancel and return. Along with the sole order fill policy, Fill or Kill, on MT4, these new additions come in handy for traders who want to go back on unfilled orders, as well as limit, stop-limit, and market orders.
Flexible Accounting Systems
On MT5, traders are allowed to simultaneously hedge an unlimited number of positions for a single symbol with the Hedging System. With MT5, clients can trade with an account with only one common position for a single symbol through the Netting System. With the Netting System joining the Hedging System, traders of different markets can use either one which works for the type of trade they engage in.
Depth of Market
Depth of Market (DoM) IS a transparency tool that can be used to check the liquidity levels of financial markets offered in the platform. Through this feature, traders have access to the liquidation levels of different currencies.
While the MT4 trading platform is a tried and tested platform for many traders worldwide, it cannot be denied MT5 is just as competent – maybe even better. With the right tools and the goal to grow financially, you may just land yourself a steady way up with the MT5 Trading Platform.