*MetaTrader is the leading trading platform nowadays. It’s widely used in Forex, indices, and commodities. This platform is also easy to use, making most traders prefer it. In this article, MT4 and MT5 will be discussed so new users can know how easy they are to operate.
What Is MT4?
MetaTrader 4 or MT4 is an electronic trading platform that you can use for foreign exchange (Forex). However, it is not directed only for Forex, and you can use it to trade in different markets such as cryptocurrency, commodity, and index through CFD or Contracts for Difference.
You can customize MT4 to your trading preferences. You can direct how you’ll automate trading by using different algorithms to open and close in trading. You can set your list of parameters to alter your trading.
To start in MT4 follow the steps below:
- Create an IG account
- Download MT4 on your device.
- Open a position in an order window.
- Check and continuously monitor your positions and your orders.
- Change stops and limits of your open positions.
- Customize your MT4 charts.
- Set price alerts.
- Observe your trading history.
- Save the reports on your trade by downloading them.
What Is MT5?
MetaTrader 5 or MT5 is an electronic trading platform that allows you to trade in futures, stocks, and Forex. It has additional features of extensive price analysis, advanced trading applications, and copy trading. MT5 is a trading platform that allows you to open multiple positions popular in Forex trading and various financial markets.
To start MT5 trading, you can follow the steps below:
- Open an account through an LBLV broker.
- Pick a financial instrument on the Market Watch Window.
- Create a brand new order.
- Choose the type of the order from instant or pending.
- Monitor your trading history.
- Download and save your trade reports.
Similarities between MT4 and MT5
MetaTrader trading platforms have a lot in common. The following are the similarities of MT4 and MT5 trading platforms:
- MT4 and MT5 have the same execution models: instant, request execution, and market execution.
- You can customize your preference in trading using the two platforms.
- You can use smartphones to access both trading platforms. MT4 and MT5 are available for Android, MAC OS, Windows Vista, Windows 7, Windows 8, and iOS devices.
- MT4 and MT5 have internal mailing systems. You can’t send emails outside the trading platform.
- Web Trader Google Chrome, Mozilla Firefox, Apple Safari, Internet Explorer, Opera, and Microsoft Edge are available for MT4 and MT5.
Here are the main distinctions between MT4 and MT5:
- MT4 is mainly used for Forex. On the contrary, MT5 is a trading platform for different financial markets, including Forex, stocks, commodities, and indices.
- MQL4 is the main programming language for MT4, while MQL5 is the main programming language for MT5. MQL4 is an order system, and MT5 is a positional system.
- MT4 has nine timeframes, while MT5 comprises 21 timeframes that you can use to work in trading.
- The indicators of MT4 are 30, whereas MT5 has 38.
- With the drawing tools, MT5 offers about 44 drawing tools that include Fibonacci and Elliot tools. In contrast, MT4 caters less drawing tools composed of 31 tools.
- An additional feature of the economic calendar below its chart is an edge for MT5 that notifies you when there is significant news in trading.
- MT5 also has a DOM or depth of market where you can see the bids and prices in different markets. It also has an additional execution model of exchange execution for an external trading system.
- MT4 has four types of orders with pending orders, including buy stop and limit, sell limit and stop. On the other hand, MT5 offers six order types, including an additional buy or sell stop limit.
- MT5 allows hedging and netting. MT4 only permits hedging.
- With the multi-asset platform MT5, you can transfer funds with your different accounts.
- MT4 is done through CFD, and MT5 allows you in different centralized and non-centralized financial markets.
- MT5 is a 64-bit multi-threaded platform, and MT4 is only a 32-bit single-threaded platform.
- Partial order filling policies are available for MT5 only. MT5 has an embedded MQL5 community chat and a log file ZIP compression.
- The reports of MT4 are composed of tables only, while MT5 has HTML charts and tables.
- The balance transaction types for MT4 are balance and credit. In contrast, MT5 has balance, credit, bonus, correction, commission, agent, interest, and charge.
- The order fill policy of MT4 is composed of fill or kill. MT5 has fill, kill immediate, or cancel return.
What to Choose
MT5 obviously has an edge with all its additional features. However, MT4 is much simpler if you’re still new to trading. You can first navigate through MT4 and get familiar with the trading process. So, whenever to expand your trades, you can use MT5 with its multi-asset trading platform to trade in different financial markets.