If you are familiar with the trading field, you have heard about the MetaTrader platforms. They are the top trading platforms offered by brokers and investment portals. In addition, the MetaQuotes software corp has become the widely used platform in the financial world.
It was developed in December 2020. It is famous for its inbuilt features across the financial industry. It comes in two versions MetaTrader4 and MetaTrader5.
The MetaTrader4 & MetaTrader5 are the most accessible platforms of the financial industry. They both offer a wide range of tools to their users. However, they both contain similarities and dissimilarities. If you are planning to participate in trading, you need to learn how MetaTrader works. Some brokers offer both MetaTrader4 and MetaTrader5 platforms, so you need to select anyone from them.
But for that, you need to know the features of both platforms and check which one is more suitable for your style.
Forex brokers mainly use the MetaTrader4 trading platform. You can use this trading platform on both mobile and desktop. The Download and installation process of MetaTrader4 is quick and easy. It supports Windows, Android, macOS, and iOS. Its password changing process is quite tricky, which is necessary for security purposes. Password changing is not a challenging task which we can’t perform.
Similar to the other software, you need to make sure it gets updated to the latest version available at that time. On this platform, you will get various features and functionalities, which we will discuss further.
On the MetaTrader4 platform, traders can effortlessly follow real-time price fluctuations. MT 4 also provides the analysis price charts of different timeframes. Through these features, you can easily identify trends without opening a buying and selling position. There are various charts available on the MT 4 platform like Candlestick, Renko Charts, & Heikin Ashi. Click here to know more about the MetaTrader4 platform.
Traders are allowed to use the Expert Advisors (EAs) feature on the MetaTrader4 for automating their trading. Expert Advisors will ensure that you may not require to set the whole day in front of your computer. It may also help you in identifying trade opportunities by picking out significant price trends. Some top forex brokers who offer MT 4 platforms are ROinvesting and HFTrading.
Key features and functionalities of MetaTrader4 Platform
You can access the MetaTrader4 platform through computers, smartphones as well as tablets. It supports both Android and iOS systems. Traders can open the MT 4 platform on any browser. MetaTrader WebTrader is entirely suitable for the desktop terminal.
The order which you place through the computer, you can easily access or open those orders from your table and mobile via Android and iOS devices. You can manage all data easily on any browser. The best feature about that is you can access your MT 4 trading account from anywhere and anytime. This thing enables you to manage your account and handle your order from any device that consists of an internet connection at any time.
MetaQuotes software corp has developed various features and different functions for trading CFDs and Forex assets. MetaTrader4 provides a wide range of tools and technologies, and it may also offer additional services for professional traders. It consists of multiple features, which makes your forex and CFD trading more efficient.
The major feature of the MT 4 platform is an automated trading system (Algorithmic trading). Algorithmic trading stands for trading that is done via an automated trading system.
MetaTrader4 platform offers Expert Advisors (EA) features that help you to perform trade at predetermined algorithms. In addition, the MT 4 IDE is created into the platform, which allows the development of a personal advisor or robot of any configuration.
Most beginners are not familiar with MQL4, But you are allowed to use the built-in app store known as “MetaTrader Market” and a free library “Code Base”. MetaTrader4 is a complete package of what you require for trading. Like multiple technical indicators, scripts, and EAs.
In MetaTrader 4, the exchange of information among traders, the platform, and the terminal servers is protected with 128-bit keys. You can also enhance the security system on the MT 4 platform by adding an RSA-based security system, an asymmetric encryption algorithm.
The MetaTrader5 trading platform was launched in the market after the five years of the MT 4 platform. The MT 5 version of MetaTrader was introduced with new advanced features and functionalities that are not present in the MT 4 platform. It allows traders to access 38 technical indicators and 40+ graphical objects to ensure that the technical analysis result we are receiving is correct.
On MetaTrader 5 platform, you will also get the latest news updates through the economic calendar. In addition, both hedging and netting are allowed on the Mt 5 platform.
While placing orders on the MT 5 platform, you will get the option to select from 2 market orders, two stop orders, six pending orders, and a trailing stop, Whereas on the MetaTrader4 platform, you need to choose between 2 market orders, four pending orders, two stop orders and a trailing stop.
Key functionalities and features of MetaTrader5 Platform
The best thing about the MetaTrader5 platform is that it allows traders to use built-in analytical resources like indicators, MT 5 tables, and graphs. By holding MQL 5, a high-performing programming language and object-oriented, these traders can create their own indicators. The coding is much easier compared to MQ4, which is helpful for traders. That can easily create trading robots or expert advisors (EA).
Trading robots are systems that automatically apply different trading strategies based on saved instruments. Through expert advisors, you are able to access trading prediction and market analysis.
MetaTrader4 and MetaTrader5 platforms also consist of hedging features that allow you to perform multiple trades. Through hedging, you can also perform the trade in the alternative direction of the same trade. Generally, traders use a netting module for trading instruments available on exchange and hedging for currency trading; you can do all this together with only one MT 5 institutional platform.
MT 5 platform consists of advanced order management capabilities. If traders hold an open position at a symbol and begin the new deal, a new position will open. This is the major concept behind the MT 5 hedging system. MT 5 platform allows traders to set their Stop-Loss and Take Profit levels, and you can also check the profit levels for all trades.
Must note that MetaTrader5 is a multimarket platform that offers both centralised and non-centralised markets for trade. Due to this, you get a wide area where you can make profits.
Real Volume Data
MetaTrader5 allows traders to get access to the on-time volume traded data and tick volume data. The tick volume data stands for the number of price changes that will display in the course of the bar. But on the MT 4 platform, you are enabled to know the actual volume that should be traded.
Tick History Download
MT 5 provides you with the authority that you can consult and download tick history, whereas, on MetaTrader4, you are only able to save tick data by yourself, which limits your collection. Even if you leave your platform open 24/7, still you are enabled to keep records of all tickets. But in MT 4, you can’t check most traded prices in a specific range order.
If you are estimating based on only M1 bars. It is a huge disadvantage than the real tick history of the broker, mainly if you are performing backtesting. Do you know the backtesting of strategies is very important before applying them to your trade? Check how backtesting strategies take place.
Tools of MT 5 Supreme Edition
Easy order Ladder Trading: This tool provides unpredictable accuracy in the form of opening and handling positions fastly. With the help of this tool, traders can open both new market orders or pending orders through the new order ladder. Total risk and reward should be determined on the fly, and it is very simple to set up.
Expanded Mini Terminal with multiple features: Through the MT5SE plugin, which allows you to expand the Mini Terminal into a highly featured control panel for your account with only one click. Because of this, you can easily open and manage orders, and it may also provide information regarding you opt trading symbol.
MetaTrader 4 and MetaTrader 5: which one is better?
Selection between MetaTrader4 and MetaTrader5 is totally made based on your requirements. Most of the traders like to go with the MetaTrader4 platform because of its easy-going and straightforward features, whereas professional traders prefer the MT 5 platform due to its advanced technologies and terminals. However, both platforms provide quick execution and display price fluctuation in real-time.
Here we tell you about some differences between the two that will help you to select anyone from them.
As we mentioned before, you can access MetaTrader4 and MetaTrader5 software from both desktop and mobile devices. This feature is common between them, but MT 5 allows you to access it straight onto a web browser that is unavailable on the MT 4 platform. For MetaTrader4 you require to install software onto your desktop.
The timeframe is an important factor that plays an essential role in the selection of the MT 4 & MT 5 platform. MetaTrader4 offers 9 timeframes which you can set from a 1-minute timeframe to the monthly charts.
Whereas the MetaTrader5 provides 21 different time frames throughout your all financial assets. It offers two and three minutes timeframes as well as multiple hourly charts. This feature is very beneficial for those traders who want to do throughout analysis of the assets.
Creating your own EAs
The significant benefit of the MetaTrader5 platform is it allows traders to create their own Expert Advisor as per their requirements. Because of this feature, they are not bound to the built-in technical indicators. As a result, MT 5 provides more accuracy while it comes to forecasting where the price will move and market analysis.
Advantages & Disadvantages of MetaTrader4 and MetaTrader5 platform
Pros of MetaTrader 4
- There is no variation about updates; you may not require changing or altering the programs compared to the new version.
- Indicators and Expert Consultants are free to select a file from the mq4 file and ex4 file for execution.
- MQL 4 consists of multiple benefits as it has been determined that various brokers are offering MT 4.
- Coding is relatively easy. An expert advisor makes it easy and short. And it allows us to design structures easily.
Cons of MetaTrader 4
- Variation in currency proficiency
- No, overcome proficiency
- MT 4 is limited to the capabilities and skills provided by terminal maintenance.
Pros of MetaTrader 5
- Language proficiency is enhanced through some variations.
- A quick change in coding syntax via advancement in technologies and terminals.
- Offer Hedging feature
- Currency variation skills
- More stipends for more complexity.
Cons of MetaTrader 5
- Compared to the MetaTrader4 platform, the MT 5 language is more difficult and complex.
- Libraries are necessary.
- A single expert can manage various libraries and files attached to it.
- Most individual traders are not switching to the MT 5 platform because of the complex language and programming; instead, they prefer using the simplest one in place of the complex one.
MetaTrader4 and MetaTrader5, both trading platforms, are very famous among forex and CFD traders. Picking one from them is a tough decision because both consist of advanced features. Check which one is suitable for you based on your trading style. Check advantages and disadvantages of MetaTrader4 and MetaTrader5 trading platforms. Some top brokers who offer the MT 4 platform are ROinvesting and HFTrading.