What are the differences between the Metatrader 4 and 5 platform?
Metatrader or MT is a trading platform used by many brokers specialising in Forex. It is developed and distributed by MetaQuotes Software Corp., a Russian company specialising in software for financial markets. Today, Metatrader is in its version 5.
Discover precisely the differences between MT5 and its predecessor Metatrader 4.
A few words about Metatrader
Metatrader is trading software that was primarily developed for retail investors. Today, several brokers offer a personalised version of this platform such as ETX Capital. In all cases, the purpose remains the same: to allow investors to speculate under the best conditions. This platform is used by both novices and regulars. Thanks to its own language (MQL), Metatrader offers a host of advantages to traders.
In addition to having the possibility of consulting Expert Advisors (an automatic script allowing management of positions and orders without having to intervene), they can consult a trading history as well as several other useful information without forgetting the indicators.
But what changes between MT4 and MT5?
The different majors between MT4 and MT5
Even though MT4 and MT5 look quite similar, there are some differences between the two versions. MT5 notably offers easier navigation, thanks to a larger size of buttons and a more airy visual. However, this implies smaller charts compared to MT4.
In terms of indicators, MT5 surpasses MT4 which was already appreciated for the multitude of indicators available to traders. MT5 offers various new features such as the exponential moving average, the dynamic average of the variable index or the weighted moving average.
When it comes to coverage, MT5 does not include support for coverage or multi-coverage. However, this is an important criterion for many traders. The latter nevertheless have the possibility of covering with plug-ins to benefit from it.
When it comes to brokerage, MT5 offers 4 ways to execute trades against only 3 for its predecessor: snapshot, market, trade and demand (trade is not available on MT4).
On the order side, the offer on MT5 is much more elaborate. In addition to the two market orders already found on MT4, there are also additional open orders and stop orders, a sell limit, a final stop and the possibility of one-click brokerage.
As for the charts, the offer is quite similar except that MT5 offers 21 steps for any financial tool instead of only 9 for PT4.
Finally, for technical analysis, MT5 includes 38 indicators against 30 for MT4. As for alerts, they arrive by text messages as well as by messaging (by messaging only for MT4).
For now, traders mainly use MT4 and this situation is likely to remain as it is unless MT5 evolves and offers the performance sought by “fans” of its predecessor.