Difference between MT4 and MT5 – Just like stocks, when trading forex you also cannot buy or sell assets through a direct brokerage company. Usually, the company will direct you to trade through an online trading platform.
One of the platforms among the many online trading platforms that is most widely used because of its quality and good level of security is MetaTrader. Currently, both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been downloaded by more than 10 million users worldwide through the Google Play Store application. The good quality of the two also makes users feel satisfied so that the rating for this application on the Google Play Store is 4.8 and 4.6 stars, respectively.
On this platform, users can trade multiple assets at once such as forex, stocks, indices or CFDs. But, before downloading this application the user must first register with a brokerage company to get an account username and password.
Throughout its journey from 2005 until now, there have been two main MetaTrader products that have entered the market. The two products are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Before getting into the differences between MT4 and MT5, let’s discuss what MetaTrader is in general.
Get to know MetaTrader (MT)
MetaTrader (MT) is a trading platform developed by MetaQuotes Software, a Russian company headquartered in Cyprus. The company first released MetaTrader 4 in 2005 aimed at companies forex broker who wants to provide a trading platform for its clients.
This software consists of two components, namely the server component and the user component. The server component is fully controlled by the brokerage company while the user component is controlled by the traders who use the brokerage company’s services to manage their accounts, update the latest news about forex and so on.
In 2010, MetaQuotes Software released MetaTrader 5 after a year earlier the platform had successfully gone through beta testing. However, until 9 years after MT5 was released, the reality is that there are still many traders who use MT4 for some reason.
Well, if you are confused about choosing to use MT4 or MT5, here are some differences between these two platforms:
Difference between MT4 and MT5
1. Operating system
In short, MT4 is more suitable for use on computers with 32-bit and 64-bit Windows operating systems at the same time. This is because when this platform was created, the existing operating system was still Windows bit-32 and was continuously developing.
On the other hand MetaTrader 5 can be used in 64-bit and uses the MQL5 programming language, which is better programming in terms of trading robots and so forth. But, you don’t need to worry because now these two platforms can be downloaded on the Google Play Store so you can trade via the website, desktop or mobile phone at the same time.
2. Programming Language
As written above, MT5 uses the MQL5 programming language while MT4 uses the MQL4 programming language. The MQL5 programming language can also be used on MT4 so that traders switching from MT5 to MT4 will not be confused. However, the MQL4 programming language cannot be used in MQ5 so traders need to make adjustments to understand the new programming language.
3. Products offered
The second difference between MT4 and MT5 is in terms of the products offered. MT4 is a platform focused on forex trading and CFD while on MT5, you can trade in many other assets as well such as stocks, bonds, CFDs and so on.
Therefore, MetaTrader 5 is perfect for those of you who want to trade on multiple platforms at once.
4. Trading Features
One of the main differences between MT5 and MT4 is the features they offer. These features include calendar features, backtesting features, timeframe features and hedging. On MT5, you can access the trading calendar directly without opening another platform. That way, you will never miss the latest trading information.
Another feature that differentiates between MT5 and MT4 is the backtesting feature. The backtesting feature in MT5 allows you to test multiple trading strategies at once while in MT4 traders have to test each strategy one by one.
In addition, you can also access 21 trading time frames so this platform is a suitable platform for those of you who want to do scalping. On the other hand, MT4 does not have a calendar feature and only has 9 trading timeframes. In fact, both the trading information calendar and the timeframe have an important influence in making a trader’s trading decision.
On the other hand, MT4 has hedging features (hedging) while MT5 does not. This is to comply with trading regulations in the United States which strictly require trading using the mechanism first in first out (FIFO).
Hedging is a feature commonly used by traders to protect the value of their assets from future trading risks. It is alleged that this lack of hedging features has caused many traders to use MT4 instead of switching to MT5.
5. Technical Support
According to some sources, MT5 has more aspects technical support which is more solid than MT4. But on the other hand, MT4 has a larger community ready to help you trade.
Another difference between these two platforms is that MT4 offers more basic technical features than MT5. For example, the amount pending orders which is only 4 while MT5 has 5 pending orders and so on.
Better MT4 or MT5?
In general, MT5 offers more investment products and has more advanced features and programming languages. From a technical point of view, it appears that MT5 has better technicalities than MT4.
However, if you want to focus on forex trading only and not on other commodities, then MT4 is sufficient. Moreover, this platform is equipped with a hedging feature that allows you to minimize risk and a user interface that is known to be easy to understand.
If you want to try both at once, you can choose a brokerage company that offers trading via MetaTrader 4 and 5 at the same time. Because that means, you can move right away without creating a new account. However, regardless of which platform you choose, neither MetaTrader 4 nor MetaTrader 5 is one best trading app.
The difference between MetaTrader 4 and 5 lies in the technology, products and features offered. MetaTrader 5 tends to have better features, technology and a wider range of products. However MT5 does not have a hedging feature while MT4 has this feature as a trading risk protection feature. So, don’t be surprised if until now there are still many traders who use MT4.