When selecting the best Forexstore, every trader should consider two options: MetaTrader 4 and MetaTrader 5. Still, each offers a unique set of options that compel traders to choose one over the other based on their trading strategy, technical capabilities, and other criteria.
Let’s try to determine which one is the best Forex store and better suits your trading needs. This comparison will help identify what’s the difference between MetaTrader 4 vs 5, find common features, and decide on one or the other.
Introduction To Metatrader 4
MetaTrader 4 first offered its services to traders in 2005 and remains one of the most popular platforms. While the platform was designed specifically for Forex trading, it is also suitable for CFD trading, allowing traders to trade stocks, indices, and commodities.
Traders appreciate MT4 as a convenient tool, flexible for individual settings, and rich in useful features actively used by Forex traders to implement their strategies.
Introduction To Metatrader 5
Five years later, in 2010, the MetaTrader 5 platform was introduced, sparking discussions about whether MetaTrader 5 is better than MetaTrader 4. MT5 operates faster and offers more tools, making it the obvious winner.
Moreover, it allows for trading with cryptocurrencies, provides traders with advanced tools for technical and fundamental analysis, and stands out for its ability to use trading robots, implement copy trading, and engage in algorithmic trading. However, there is still no definitive answer to the question of which is better.
The battle of MetaTrader 4 vs 5 continues because the new platform also has certain drawbacks: it is more complex, demands higher technical capabilities, and requires more specialized knowledge.
When choosing between MetaTrader 4 or 5, it’s essential to understand that there are several commonalities between these platforms. Firstly, both solutions are developed by MetaQuotes Software, which allows you to:
- Support various order types;
- Conduct in-depth technical analysis using charts, indicators, signals, and timeframes;
- Utilize expert advisors (eas) trading robots and practice automated trading;
- Create your trading strategy using built-in programming languages;
- Access historical price data for a selected period;
- Execute quick entry and exit from positions;
- Effectively manage risks by setting stop-loss and take-profit orders to protect against potential losses and secure profits.
Both platforms are available in mobile versions, offering Android and iOS apps. Furthermore, they provide access to current economic and political news that can impact asset prices. The news feed is integrated into the interface, making it relatively straightforward to find and utilize this option.
Both options allow you to use a demo account to hone your skills without the risk of losing real money.
It’s much more interesting to discuss what’s the difference between MT4 and MT5. The key distinctions between these platforms influence users’ preferences.
In MT5, more markets are available for trading: in addition to Forex and CFDs, it allows you to work with bonds, futures, options, and cryptocurrencies if you’re looking for innovative trading options and trying to keep up with the times.
There are also more timeframes available, which can be quite convenient in specific cases if this aspect is crucial for the success of your trading strategy. Additionally, MT5 features:
- An integrated economic calendar;
- The ability to transfer funds between trading accounts;
- Exchange trading;
- Several additional indicators not present in mt4.
However, these differences don’t make MT4 a significantly inferior choice; it’s just different. As long as this platform provides everything you need for the successful implementation of your trading strategy, you aren’t missing out on anything special by choosing MT4 over MT5.
The differences are not decisive because both platforms offer ways to compensate for their shortcomings and provide alternatives. For example, MT4 has fewer built-in technical indicators, but it offers customizable solutions and a free base of downloadable indicators for additional use.
A significant difference is the presence of two additional order types in MT5. In addition to the four types offered by MetaTrader 4 (buy stop, buy limit, sell stop, and sell limit), MetaTrader 5 also includes stop-limit orders for buying and selling.
In terms of interface complexity, MT4 is a much simpler solution, especially if you are just beginning your professional journey in trading and need only the most essential tools at your disposal. Beginners find it easier to navigate MetaTrader 4.
Meanwhile, professionals prefer MT5 because it meets their needs and provides more flexibility in implementing complex trading strategies.
That’s why it’s impossible to say is MetaTrader 5 better than MetaTrader 4. If you’re just starting to explore the Forex market, MT4 will be your first assistant, and later on, you can continue trading on MetaTrader 5.
Try, analyze, and choose the solution that aligns with your trading plans.
Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.
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