Knowing how your trading platform runs and the common terms used when trading gives you a better glimpse of its features. In return, you will know how to properly use it and take advantage of its strengths. MetaTrader 4 and MetaTrader 5 are two of the most famous trading platforms nowadays. It is being offered by almost all brokers due to its high demand. You might think that MT5 is just the updated version of MT4, when in fact, it is not. These two have different characteristics and center their operations in two different markets.
MetaTrader 4 vs. MetaTrader 5
The interface used in MT4 is user-friendly and easy to use by Forex traders. The trader is also allowed to customize the platform to suit their trading needs. As for the MT5 trading platform, it has additional features to enhance your trading experience including the option to trade in the markets such as stocks and futures. Although the MT4 and MT5 interface is quite the same, you can see additional timeframes on MT5 as well as additional services and trading advantages.
MT4 and MT5 use different timeframes. Additional time frames are seen in the MT5 Platform. It has 11 types of Minute Charts, 7 types of Hourly Charts, and 365 Daily, Weekly, and Yearly Timeframes. There are also extra timeframes for better analysis. The MT4 has 9 timeframes and the MT5 has 21 timeframes.
Types of Pending Orders
MT4 has four types of pending orders (buy stop, buy limit, sell limit, and sell stop). MT5 has 6 types of pending orders (buy stop, buy limit, buy-stop limit, sell stop, sell limit, and sell limit).
MT4 and MT5 also have different programming languages aimed to develop trading robots and additional features such as technical indicators, scripts, and function libraries.
MQL4 is mainly used to develop trading programs that are based on an order system. It also requires different functions to properly perform varying trading operations. The programs in MQL4 are also a lot simpler than MQL5 and the programs found in MT4 cannot run on MT5.
MQL5, on the other hand, uses a different programming language than MT4. MQL5 is mainly used as a positional system. It is also more efficient and user-friendly. For traders who are techier, they can write their own scripts. As for the trading operations, it is done by sending the trade requests with a single function.
Hedging is offered by both MT4 and MT5. However, on MT5, hedging and netting are allowed.
MetaTrader lets you analyze the market with its technical indicators. MT4 has 30 built-in indicators, 2,000+ free custom indicators, and 700 paid indicators. Technical analysis is offered in MT5. These include 38 technical indicators, 44 analytical objects, 21 timeframes, and an unlimited number of charts.
Market Depth is not offered in MT4 but offered in MT5. The Depth of Market (DOM) offered in MT5 offers and bids financial securities at different prices depending on the volume.
The economic calendar is also not offered in MetaTrader 4 but it is offered on MetaTrader 5.