Forex trading is impossible without a reliable software. Platforms MT4 and MT5 have been industry favourites for many years. Here is how they compare.
Difference Between Mt4 and Mt5
Currency trading does not only benefit large institutions like banks and hedge funds. As retail traders, individuals in the UK and elsewhere may also access the marketplace. This is achieved with the help of efficient dedicated software. Here is a useful guide to help you understand the difference between mt4 and mt5, the most popular picks for trading.
The Power of Digital Tools
The logic of Forex trading is based on the ever-changing values of national currencies. Well-timed exchange operations bring profit to prudent players. These users are skilled at navigating market trends and monetizing their knowledge. In this field, platforms are indispensable.
Both products (MT4 and MT5) may be downloaded and installed free of charge. All further steps require the assistance of a reputable broker. Famous companies like FXTM register trader accounts, handle all finance flows and provide comprehensive support.
With the acquired login details, you may begin to use the platform. It is recommended you explore the environment in the risk-free mode before involving your money in real trading.
What Is Special About MetaTrader
Although alternatives do exist, they can hardly compete with the platform. A brainchild of MetaQuotes Software Corp., Metatrader comes with a wide range of benefits. Here are the most essential ones:
- wide range of trading instruments;
- multiple visual aids (tables, bar charts, etc);
- quick execution;
- live-streaming prices;
- comprehensive compatibility;
- access to finance news;
- audio alerts;
MetaQuotes Software Corp. keeps up with the times. Both platforms have mobile versions, which means trading may be accessed on the go. All popular types of OS and portable devices are covered. Both the Google Play Store and App Store have thousands of genuine user reviews for the products.
Which Version to Pick
You may suppose the later — fifth — version is more advanced by default, and this is true. However, some traders still opt for the predecessor. Despite being five years older, MT4 is not obsolete, as it is best suited for the needs of those who focus on currencies.
MT5, on the other hand, offers wider functionality. It is favoured by more mature traders wishing to diversify their portfolios with other tools (e.g., CFDs and stocks). Hence, it is the MT4 that newbies are advised to install. While you are learning the ropes, advanced graphs and options are often confusing and simply unnecessary.
What Makes Mt5 Advanced
Both versions are customizable and have a similar layout. They also share such features as audio alerts and finance news. However, any user will notice richer graphic analytics and sophistication in the fifth edition. Here are its most salient additions:
- Choice of timeframes (21 against 9);
- Choice of embedded technical indicators (38 against 30);
- Number of graphic objects (44 against 31);
- More execution modes (‘exchange execution’ was added);
- More pending order types (6 against 4);
- Built-in economic calendar;
- Depth of market (non-existent in MT4);
- Netting (non-existent in MT4).
Different Platforms — Different Languages
Not only do the programs differ in their functionality, but they also operate using different algorithms. MQL4 and MQL5 are incompatible with one another, and they offer very specific operating procedures. For example, the earlier type is position-based, while MT5 works with orders. The latter also allows creation and altering of scripts. Finally, each trading operation requires just one function as opposed to several in MT4.
Why MT4 is Still Useful
Convenience and efficiency delivered by the upgraded version cannot be denied. However, MT4 is still the platform of choice for rookies setting off on their trading journey. Its relative simplicity allows inexperienced users to explore market trends and indicators, gradually developing their skills and foresight.
When you are ready to venture into the realm of stocks and commodities, switch to MT5. As long as operations are limited to currencies, you may be perfectly content with MT4 and its simpler interface.