Online traders in India have a wide range of software at their disposal. Brokers provide unique and generic solutions for flexible access across devices. MetaTrader 4 and MetaTrader 5 are the most common choices. They are offered by many local and international companies. But how do they compare?
Overview of the Systems
Both systems were developed by MetaQuotes Software. The first version was released in 2005, and the successor appeared five years later. Today, over 15 years after its Inception, MT4 is still popular, and both versions coexist in app stores.
Key Similarities
Each terminal is designed to suit all needs of the average trader. There are features for market analysis, trade management, and execution. Users can pursue different strategies, both short and long-term. They keep their losses under control via limit orders and gradually develop diverse trading portfolios.
Whichever version you install, you will have access to different markets and instruments. Both systems can work in the Forextime demo mode, allowing you to explore different strategies for free. The basic arsenal includes:
- multiple instruments across markets from Forex to CFDs;
- multiple visuals for technical analysis, such as line graphs, bar charts, etc.;
- different execution modes — instant and delayed;
- streaming market quotes;
- access to financial news;
- audio alerts.
Multi-Platform Use
Each digital environment may be installed on any desktop or mobile hardware. There are software for Windows and Mac, web-based terminals and apps for Android and iOS. Traders may work even without MetaTrader 4 or MetaTrader 5 download, as their versions work in popular browsers.
An important aspect of compatibility is cross-platform use. You can install different versions simultaneously and switch between devices during the day. For example, a trade may be initiated from a smartphone and executed via a laptop. Tablets, smartphones, and PCs with MetaTrader connect to the same cloud-based servers. Data is shared instantly.
Expert Advisors
Both platforms allow the integration of Forex robots. Expert Advisors are smart pieces of software that can analyse the market and even execute trades. The official MetaTrader collection features thousands of these tools. Both terminals come with several embedded robots, and you can purchase or rent more. Some of them are available for free.
Key Differences
So, as MetaTrader 5 is newer, does it mean it is better by default? This depends on your needs. The versions cater to different categories of users. Generally, MT4 is recommended to beginners and anyone focused on Forex trading. Its interface is relatively simple, which facilitates learning.
Range of Assets
MT5 offers a wider choice of technical tools and better support of fundamental analysis. Moreover, it supports broader portfolios. Aside from currency pairs, metals, market indices and commodities, users may access stocks and futures.
Range of Tools
As a result, MT5 is chosen by more experienced traders. These experts manage instruments across multiple markets, including shares of large corporations and futures contracts. Here are the main advantages of MT5 in this regard:
- more timeframes (21 against 9);
- more technical indicators (38 against 30);
- more graphic objects (44 against 31);
- more pending order types (6 against 4);
- economic calendar;
- depth of market;
- netting;
- exchange execution.
MetaTrader 4 gives access to the latest financial news, which is essential for fundamental analysis. MT5 is also equipped with an economic calendar. This feature summarises the crucial updates to help traders make decisions. Overall, both categories of analysts will find more tools on MT5.
MQL4 vs MQL5
Each system runs on a specific programming language. MQL4 is position-based: every operation requires a set of functions. MT5 is faster by design. It is based on orders, so a request requires just one function. In addition, users are free to add and alter scripts.
Should I Choose MT4 or MT5?
What markets and instruments do you intend to trade? How much experience do you have? As MT4 is less advanced, it is more suitable for novices. If you are focused on currencies, it should also suit your needs perfectly well.
Later on, as you gain experience and your portfolio grows, you could switch to the advanced system. MT5 is packed with tools for seasoned investors, particularly those who have stocks and futures in their portfolios. To conclude, if you are hesitant, think about your needs and goals. Complex tools are confusing if you are only preparing to start your trading career.
