Whats are the benefits for upgrading from MT4 to MT5
from a traders point of view ?
Forum on trading, automated trading systems and testing trading strategies
Comparison between MT4 and MT5
Adam Smith, 2016.05.20 08:34
Metatrader 4 (MT4) and Metatrader5 (MT5)
are among the popular trading platforms in the foreign exchange market. Now the
question crops up –what is a trading platform? A trading platform is software,
which connects a trader with a broker. Traders can place orders via interface
of the trading platform and then those are executed by the brokers. Providing
information in the form of quotes and charts is one of the benefits of using a
Metatrader4 or MT4 is a well-known trading
platform, which was developed by MetaQuotes Software. It was released in
2005.Metatarder 5 is just an improved version of MT4, which was released in
2010.If you are new in the forex market; it is very natural to get confused
which platform to choose for forex trading.
A brief account of how MT5 is different
from MT4 is discussed below:
Installation - Metatrader 4 is
simple and user-friendly software. Many users prefer Metatrader 4 as metatrader 5 download is not easy
Compilation of Codes –You can
find some differences in features of expert advisor between MT4 and
MT5.Metatrader4 is designed with MQL code language, which is faster and easier
to compile. But data transfer from Metatrader4 to Metatrder5 cannot occur.
Interface – Metatrader 4 has
easy to navigate interface. This makes this trading platform popular among
Trading methods- Metatrader4
offers almost all types of trading methods – hedging and LIFO, while the new
version i.e., Metatrader5 does not support hedging and implements FIFO by
Memory space- Metatrader4 takes
up less memory space compared to Metatrader5.
Choice of brokers: It has been
found that many brokers offer Metatrder4 compared to MT5. So if a trader
selects Metatrader4 for trading, s/he can select a broker from a wide range. Moreover,
majority of brokers offer key services on MT4 only.
Variety of Charts and
Timeframes – Metatrader5 offers 21 timeframes, whereas Metatrader4 offers only
9.Moreover, MT5 offers unlimited number of charts, out which 100 can open at a
user gets the benefit of an inbuilt forex calendar. Features like news events, schedules,
expected impacts, forecasts are also included in this calendar.Metatrader4 does
not have this feature.
Indicators & analytical
object tools – Metatrader5 offers 38 inbuilt indicators,22 analytical tools and
46 graphical objects, whereas metatrader4 offers 30 inbuilt indicators and 33
Market Orders- A trader can
send 2 market orders,6 pending orders and 2 stop orders through MT5 whereas,
Metatrader 4 allow a trader to send 2 market orders,4 pending orders, 2
execution modes,2 stop orders and a trailing stop.