UNITED STATES—Internet-assisted trading and investing engage 15+ million people across the world. Anyone can register a demo or live account with a broker. Stock and currency markets, once open to the chosen few, are more accessible than ever. Finance software is your window and gateway to the realm of digital money flows. Today, the most popular choices are MetaTrader 4 and 5.
Both products are efficient specialized environments for online trading. Their key difference lies in the scope of functions and the sheer number of options. Currency traders usually prefer the earlier version. The fifth edition is favored by holders of diversified portfolios. Here is what these platforms can offer.
The Power of Trading Software
Success in Forex trading relies on knowledge of price dynamics. The values of national currencies are permanently in flux. They are influenced by multiple and varied factors. A well-timed exchange operation brings profit. This means users need to hone their foresight and skills to anticipate market trends. This underscores crucial importance of advanced platforms.
To start exploring the software, a user needs credentials generated by their broker. The firm serves as an intermediary between individuals and the vast global markets. Aside from account registration, it will handle all finance flows and provide expert guidance and technical support. Both Forex trading platforms are distributed free of charge. They may be downloaded and installed from brokerage websites.
Rookies must always start with a demo account. This unlocks the simulated risk-free mode. With no money invested, no profit or loss is made. Meanwhile, users have a chance to explore the functions. They are advised to gain experience analyzing charts, opening and closing positions, setting the stop loss/take profit limits, etc. This ensures they know what they are doing when real money comes into play.
Key Advantages of MetaTrader
The platform is a brainchild of MetaQuotes Software Corp. Today, no alternative may compete with either version. Suitable for both PC and mobile devices, MT has a wide array of benefits. Consider the following:
- Broad choice of trading instruments;
- Multiple visual aids (tables, bar charts, etc);
- Speedy execution;
- Live-streaming prices;
- Access to financial news;
- Audio alerts;
- All-encompassing compatibility.
The developer is incessantly working to enhance the products. Today, there are mobile versions for both MT4 and MT5. This translates into maximized convenience, as trades may be managed on the go. Moreover, all popular types of OS and portable devices are accepted.
Users of Android and iOS may get the apps from Google Play and App Store respectively. Each collection has thousands of genuine client reviews for the software. Before installation, traders are faced with the same dilemma: should it be 4 or 5?
Which Version to Pick
We are used to perceiving earlier software as less advanced. Although this thinking proves right in the majority of cases, MT is different. You may suppose the fifth edition is preferable by default. It is undeniably more advanced. However, millions of traders still opt for the predecessor. Why?
In terms of age, MT4 and MT5 are five years apart. However, this does not automatically render the former obsolete. The truth is that it is still perfectly suited for the needs of currency traders. Complex analysis tools may only hinder their trading.
Meanwhile, owners of diversified portfolios install MT5. The fifth version stands out due to wider functionality. Most rookies start with currency pairs. Hence, switching to the newer edition occurs later. Those confident enough to delve into stocks and derivatives use more advanced interface. Hence, it is MT4 that newbies install, and MT5 is chosen by experienced traders.
Sophisticated Features of MT5
The two versions have a similar layout. Easily customizable, they both have audio alerts and finance news. The fifth edition, however, offers richer graphics and analytics. The version also uses different languages, which explains different logic of procedures.
MT4 is based on MQL4, a position-based language. MT5, on the other hand, works with orders. The later version allows creation and altering of scripts. In addition, just one function suffices for each trading operation. The basic comparison reveals significant advantages for diverse portfolios:
- Number of timeframes (21 against 9);
- Number of embedded technical indicators (38 against 30);
- Number of graphic objects (44 against 31);
- More execution modes;
- More pending order types (6 against 4);
- Built-in economic calendar;
- Depth of market
The Bottom Line
It is impossible to deny the advanced nature of MT5. Training, however, requires simplicity. This explains why MT4 is still recommended for beginners. Users explore market trends and indicators, gradually honing skills and working out strategies. Once they are ready for more complex instruments, MT5 is the place to go.
MT: Comparison of most popular Forex platforms – Metatrader 4 and 5
MD: Online trading requires a reliable software environment. Two versions – MetaTrader 4 and 5 – remain industry favorites. Here is how they compare.