What Is MT4 And MT5 ?

Key Highlights

MetaTrader is a trading platform that comes in two versions: MT4 and MT5. It’s widely popular among traders and is the platform of choice for many reputable brokers. In a nutshell:

• MT4 was developed by MetaQuotes Software and has been in use for more than a decade.
• MT4 supports various types of orders, e.g., pending orders, market orders, and stop orders.
• MT5 is an upgraded version of MT4 commonly used by online retail forex traders and brokers.
• The decision on which to use will depend on your trading style. 

What Is MT4 and MT5 ?

Welcome to the fast-paced world of FX markets, where access to a reliable, feature-rich, and proven trading platform can make the difference between profitability and consistent losses. In this world, MetaTrader, by MetaQuotes, easily comes out on top, thanks to its reputation among traders. 

It’s a platform that many have long hailed as a companion to financial success, as it offers them the ability to undertake a wide range of trade-related activities such as trade automation, charting, and technical analysis. 

If you’re a beginner trader, you probably didn’t know that there are two versions of this platform: MT4 and MT5. The standout difference between the two is that one is older than the other. Besides this, there’s more to these two platforms as you’ll note in our guide below. Keep reading!

What Is MT4 ?

MT4 or MetaTrader 4 is a popular electronic trading platform that’s primarily designed for use in online retail foreign exchange trading. Traders can, however, also use it when trading other known financial instruments such as futures, stocks, and commodities. 

Most traders love it because it provides a detailed set of tools and features that come in handy when analyzing market data, opening and closing trades, and managing their trading accounts. Its support for automated charting, extensive charting capabilities, and user-friendly interface are added bonuses.

Key Features of MT4

MT4 has gained popularity among millions of traders worldwide because of its flexibility, reliability, and the wide range of features highlighted below. 

• Community and Marketplace: MT4 provides a community of beginner and experienced traders where ideas, insights, and strategies are shared. A quick search shows that it’s home to multiple online marketplaces where you can access a broad range of trading tools and indicators.
• Custom Indicators and Scripts: Traders can use the MetaQuotes Language 4 to create custom technical indicators and scripts. Such scripts allow you to develop unique trading strategies and enhance your fundamental and technical analysis processes.
• Account Management: You can manage more than one trading account within the MT4 environment, generate detailed reports, view transaction history, and track account balances.
• Mobile Trading: The MT4 platform is available for mobile, and recommended for traders who like to trade while on the go. It comes in two versions: Android and iOS, ensuring no one feels left out. 

The MT4 is widely supported by most forex brokerage companies, and is a platform that many experienced traders are well-versed in. 

What Is MT5 ?

The MT5 is the latest version of the MetaTrader platform. And while this is a newer release, you should note that it still shares a ton of features with its predecessor, the MT4. For example, the graphical interfaces and back-testing capabilities on both are fairly similar. 

However, you should note that MT5 was primarily designed to meet the needs of U.S.- and non-forex markets in ways MT4 couldn’t. What this means is that the MT5 is not necessarily better than its predecessor; it’s just different. 

To learn more about What is MT5 ?

MT5 Trading Platform

Start Trading with MT5

MT5 Trading Platform

Start Trading with MT5

Key Features of the MT5

Below is a look at the features present in the MT5:

• New Order Types: MT5 comes with two additional types of orders, which you’ll not find in MT4: buy stop limit and sell stop limit. The platform also provides support for partial order filling. 
• Improved Strategy Tester for Expert Advisors (EAs): The new platform comes with a multi-threaded strategy tester offering faster execution speeds during testing of programmed strategies. It also allows for back-testing of multiple currency pairs. 
• Added Widgets and Indicators: You’ll notice that MT5 offers eight new built-in indicators and has more (13) graphical objects than MT4. For the trader, this means you now have a better chance to perform a detailed, in-depth analysis of the FX markets. 
• Market Depth: Traders can now view the market depth by hitting a combination of the ALT+B buttons. This provides a graphical representation of the offers and bids of each underlying asset, based on the trade volume. 
• Tradeable Assets: The list of tradeable assets has increased, allowing you to now trade options, indices, bonds, cryptocurrencies, and futures alongside forex on the MT5 platform. Additionally, it has expanded its instruments to include 1000+ assets compared to the 250 on the MT4. 
• Funds Transfer: Traders are now able to transfer funds from one MT5 account to another, provided the accounts in question are hosted on the same server. It’s a process that helps streamline trade processes, providing traders with much-needed convenience and flexibility. 

Overall, the MT5 is an advanced trading platform that has been designed to cater to the needs of the everyday trader, regardless of whether you’re a beginner or an experienced trader. And as you can see from the list of features above, it has lots to offer, allowing you to engage in efficient analysis. 

The MT4 vs MT5

Which is better between the MT4 and the MT5? This is one of the most commonly asked questions on Reddit and other trader communities.

But while most people are quick to serve their opinion based on the platform they have used, I always urge a little patience and restraint. 

Having had the opportunity to use and review both, I can confidently point out that the best platform for you will depend on your trading preferences and, most importantly, your individual needs.

What do I mean by this? If you’re a beginner trader, for example, you may want to try out the MT4. I find that its interface is simple and easy to use 

But, if you’re more experienced, I’d recommend that you go for the MT5. As we have seen above, the MT5 provides more features and the kind of flexibility that allows you to trade more instruments. 

Having said that, I think the best way to decide which is the best between the two is to have a comparison table.

Learn More About MT4 Vs MT5

MT4 vs MT5 Comparison Table

Conclusion 

Based on what we have seen above, both MT4 and MT5 platforms are powerful in their own right, with each providing a wide range of useful features. But as with everything else in the world, they do have some notable differences. For starters, the MT5 platform is the more powerful of the two and is thus able to provide a better trading performance and ongoing support for the trader. If you’re a trader who would like to trade 1000+ instruments today, go for the MT5 platform on Audacity Capital. This is a regulated broker allowing you access to more markets, mobile trading, flexible conditions, and automated trading.

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