The first few things that you need when you trade Forex or stocks is to find a reputable broker and a trading platform. And among the most commonly used trading platforms nowadays are the ones made by MetaQuotes Software Corp. – The MT4 and MetaTrader 5 (MT5). At first glance, you may think that this MT5 is an upgraded version of its predecessor but it is not. Both have a different set of tools and markets that they focus on. Each of these platforms is useful in its own ways. Let’s check out some of their biggest differences so you will know which trading platform to choose.
MetaTrader 4 is five years older than MetaTrader 5. This trading platform is particularly used to trade Forex. But even though this trading platform is created with special consideration to Forex traders, it can still be used on other investment options too. The assets that you can trade will mainly depend on the broker that you’ve chosen.
This trading platform is quite popular among Forex traders and budding traders as its interface is very user-friendly. It also offers customization that will help you with your trades. Here are some of its prominent features.
MT4 has 30-built in indicators so you can easily identify when a good opportunity to trade comes in. Aside from the built-in indicators, you can also get another 2,000 free indicators and another 700 paid indicators that you can use to customize your trading platform.
Compared to the MT5, MT4 has a more straight-forward approach to the processing of orders. This aspect is hugely beneficial to Forex traders and newbie traders who are still not adept in navigating the platform and dealing with the Forex market.
MT4 is known to have a high level of customization with different add-on indicators to choose from, capabilities to copy-trade and so much more.
Now, we will tackle the more advanced and latest trading software released by MetaQuotes Software, the MetaTrader 5. Unlike the previous trading platform, MT5 is boosted with an array of analysis and trading tools. Aside from the Forex market, it also gives access to other markets such as stocks, CFDs, futures, and indexes.
This trading platform is known to have a variety of execution types. MT5 has an exchange execution mode, something that is missing in the MetaTrader 4 trading platform.
Partial Order Filling Policies
The MetaTrader 5 trading platform allows partial order filling in case the maximum volume of orders don’t get executed. For MT4, this is an option that is yet to be available.
Market Depth Options
In the MT5 trading platform, there is a market depth option that gives you a chance to make bids for financial security out of varying prices but depending on its volume.
So which one is better? These two trading platforms have their own highs and lows. Take time to check its advantages and disadvantages so you will know which trading platform best suits your trading style.