MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular and widely used trading platforms in the world of forex trading. These platforms were developed by MetaQuotes Software and have become the industry standard for forex traders worldwide. In this article, we will delve deeper into what these platforms are and how they differ from each other.
What is MT4?
MT4 was released back in 2005 and quickly gained popularity due to its user-friendly interface, advanced charting capabilities, and the ability to automate trading strategies. It is a powerful trading platform that has been designed specifically for forex trading, but it can also be used to trade other financial instruments such as commodities, stocks, and indices.
One of the key features of MT4 is the ability to use Expert Advisors (EA). EAs are automated trading systems that can be programmed to execute trades according to specific criteria. This means that traders can create their own custom trading strategies and automate them to run 24/7 without needing any manual intervention. Additionally, MT4 has a wide range of technical indicators and charting tools that allow traders to conduct technical analysis and identify trading opportunities.
What is MT5?
MT5 was released in 2010, and while it is similar to MT4, there are some notable differences. The most significant difference is that MT5 was designed to trade a broader range of financial instruments, including stocks, futures, and options, in addition to forex. This means that traders can use MT5 to trade a wider range of markets from a single platform.
Another key difference between MT4 and MT5 is the programming language. MT5 uses MQL5, which is an advanced programming language that allows for more complex trading strategies and algorithms. This makes it easier for traders to create and test their own custom indicators and trading robots.
MT5 also has improved backtesting capabilities, which allows traders to test their strategies more accurately and with greater precision. Additionally, MT5 has more advanced charting tools, including the ability to display up to 100 charts simultaneously and the option to use 21 different timeframes.
Which one to choose?
When it comes to choosing between MT4 and MT5, it ultimately depends on your trading needs and preferences. If you are a forex trader looking for a user-friendly platform with a range of technical indicators and the ability to automate trading strategies, then MT4 is the way to go. On the other hand, if you are looking to trade a wider range of financial instruments and need more advanced programming capabilities, then MT5 may be the better choice.
It is worth noting that some forex brokers offer both MT4 and MT5 platforms, so you may have the option to use both. This can be useful if you want to trade forex on MT4 but also want to trade other financial instruments on MT5.
In summary, MT4 and MT5 are two of the most popular and widely used trading platforms in the world of forex trading. MT4 is a powerful platform that is designed specifically for forex trading and has a range of technical indicators and the ability to automate trading strategies. MT5, on the other hand, is designed to trade a broader range of financial instruments and has more advanced programming capabilities. Ultimately, the choice between MT4 and MT5 comes down to your individual trading needs and preferences.