The difference between MetaTrader 4 and MetaTrader 5 has been the topic of discussion among traders and brokers for a while now. While most of the structural components are the same in both MT4 and MT5, some features are unique to MT5 only.
If you’ve been using MT4 for a while and wondering if switching to MT5 is worth the hype, this blog post is for you. Let’s break it down.
Advanced Features Unique to MT5
MetaTrader 5 is gaining momentum, with top brokers offering the platform. Here are five features that make MT5 stand out:
Market Coverage
MetaTrader 4 primarily focuses on forex and Contracts for Difference (CFDs). As a result, only the traders who focus on currency trading can benefit from MT4. In comparison, MetaTrader 5 facilitates the trading of numerous asset classes, including stocks, bonds, commodities, futures, and even options. Multi-asset trading allows traders to diversify their portfolios, protect their capital against sudden market changes, and ensure a smooth trading experience.
MQL Programming Language
MT5 features the MetaQuotes Language 5 (MQL5), an object-oriented programming language with advanced features that surpass many of the capabilities of MT4’s language. For example, MQL5 offers some specialised elements of C++, which allow traders to step into the world of automated and algorithmic trading. Users can develop Expert Advisors (EAs) to automate trading strategies and stay on top of trends 24/7.
MQL5 also features multi-threaded operations, which were not previously available in MT4’s single-threaded setup. With MT5, running complex programs like backtesting and algorithmic trading will feel like a breeze.
New Order Types
Order types give traders control over the pricing, timing, and conditions of trade. The idea of issuing requests to your broker to adhere to predefined price limits is not new, but MT5 has taken order types to another level. It features a total of six order types, compared to MT4’s four. The two new added order types are:
- buy stop-limit
- sell-stop limit
These are critical for risk management as well as portfolio customisation.
Built-in Economic Calendar
MetaTrader 5 has added an economic calendar to the terminal window, which can be pinned to charts for maximum convenience. Traders no longer need to visit external news websites to keep tabs on market changes. You can look at macroeconomic movements and assess newly-released financial reports.
Additional Indicators and Features
MT5 has also upgraded numerous indicators and crucial objects already featured in MT4. For example,
- number of time frames – 9 to 21
- Graphical objects – 24 to 44
Which One is Better?
Both MT4 and MT5 were created by the same software developer, but there are some differences and upgrades in their functionality and trading abilities. Traders looking for a relatively simpler experience can benefit from MT4. However, those who wish to navigate the world of multi-asset trading with fast executions and advanced market knowledge might find MT5 more beneficial.
Remember to assess your trading style and goals when upgrading from MetaTrader 4 to MetaTrader 5. Depending on your broker’s regulations, you can also use both platforms.