In the field of Forex trading, a reliable trading platform is outstanding. Two platforms frequently highlighted are MT4 and MT5. They are utilized for trading currency pairs and other financial instruments across various markets, freeing users from actively engaging in asset trading.
In this article, we aim to clarify the nature of MT4 and MT5 and the distinctions between them, reinforcing your knowledge about these versatile trading platforms.
An Overview of MT4 and MT5
MT4 and MT5 are trading platforms designed to transact and analyze trading data within the Forex market.
MT4
Starting with MT4, or MetaTrader 4, it's an electronic trading platform highly favored for foreign currency trading and CFD (Contracts for Difference) products. This platform was developed by MetaQuotes Software Corp, a Russian software enterprise that extends software licenses to brokers and financial institutions worldwide. MT4 is renowned for its efficient charting tools and analytical features, and the platform is accessible via mobile devices, including smartphones and tablets.
MT5
Subsequently, we have MT5, or MetaTrader 5, an enhanced version evolved from MT4. It prioritizes a more simplified and streamlined user interface coupled with augmented functionality. However, several traders continue to lean towards MT4 due to certain features absent in MT5. For instance, MT5 cannot utilize Expert Advisors (EA) or implement hedging trading strategies.
Distinguishing MT4 From MT5
MT4
- Features 9 customizable timeframes
- Employs MQL language
- Advocates for hedging
- Offers 3 types of order execution
- Lacks Depth of Market
- Require separate server names for Real and Demo accounts
- Incorporates 30 indicators
- Supports placement of 2 market orders, 4 pending orders, and 4 stop orders
MT5
- Provides 21 selectable timeframes
- Leverages C++ language
- Does not endorse hedging (only netting)
- Facilitates 4 types of order execution
- Includes Depth of Market functionality
- Fewer requote issues
- Allows user-defined demo servers
- Contains 38 indicators and 48 graphical objects
- Permits placement of 2 market orders, 4 pending orders, and 2 stop orders
Conclusion
MT4 and MT5, developed by a Russian software enterprise, function as instruments to expedite various transactions in the Forex market alongside the trading of CFD assets. Notably, MT4 and MT5 possess differing attributes, mainly owing to the fact that MT5 is a derivative of MT4, leading to unique functionalities. For example, MT4 endorses hedging, whereas MT5 does not. In addition, MT4 features 30 indicators, in contrast to MT5's 38 indicators.
While MT4 and MT5 showcase different attributes, the choice of trading platform frequently hinges on the broker employed by the traders. Hence, this article serves as a guide, helping users decide on the most aligned platform with their trading requisites.
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Updated
1 year ago
(Jun 05, 2023 10:08)
