MT4 vs MT5: Which one is Best Trading Platform

MT4 vs MT5

Table of Contents

MT4 vs MT5: Trading in CFDs and forex has completely changed. The game is not what it used to be 10 years ago. The trading platforms first appeared to the trader back in the 90’s. At that time, these platforms were called trading terminals. The trading terminals walked so that the trading platforms could run. They paved ways for retail trading to grow itself on the popularity basis. The terminals also created easier access to a larger group of people who traded in forex and were looking for trading in CFDs as another investment option. 

As the time progressed, the trading platform began offering trading in cryptocurrencies. The most popular of these digital assets are the likes of bitcoin, Ethereum to name a few. The world of cryptos is constantly evolving and still, these coins have managed to sit on top of the list. 

The market evolved from trading terminals that used to hold real cash to cash that is practically non-existent. This is not just a change, this is a paradigm shift that the market saw. To counter the whole game, the platforms had to be shifted in a better sense. MetaQuotes came up with the forex charts as their first product. 

The FX charts were easy to use and were easily available. Soon, the firm led to the developments of better trading platforms. As they experimented with their lineage of product, the firm developed MT4, or, the MetaTrader 4 as one of its finest products, with a few more in line to be the best. 

As trading grew as a business, the traders began looking at their platforms as their workspace. Now every one who wants to make money from a defined space, needs that space to easily communicate with him or her in terms of functionalities and experience. This is exactly what the MT4 vs MT5 platforms do. The MT4 platform is known to tbe the reference model for a lot of brokers who develop their trading platforms indigenously. 

The main features that the Me HFTrading offers MT4 as the primary trading platform to its users. taTrader products flex are multifunctionality, mobility and security. 

Let us talk about some of the best features of the Metatrader 4 trading platform: 

Mobility:

The platform is completely mobile. This means that the traders are not restricted to access the platform via a PC or a system only. They can if they wish to but no such constraints are there. The platform can be accessed by tablets and smartphones as well. The three different formats by which the platform can be accessed are: browser, mobile and desktop. Both the variants of the platform, the webtrader and the one for the smartphone section are completely in compliance with the desktop terminals.

If the trader can open or operate on the order via computer, they can easily do so on their personal phones and tablets as well. The data is 100% secure and correct. The core idea behind the concept of making the platform mobile is the fact that the traders have a choice to choose the time and place to do business independently. The constraints of a system being present in front  of them are resolved with the feature. 

If familiar with  the web platform, the traders can also open and manage their orders with the mobile platforms.

Order types:

MT4 provides the traders with basic order types. The buy limit, buy stop, sell limit and sell stop. For the maximum number of traders, these types of orders are enough to cater the needs of their trading strategies and at the same time, limiting the risk exposure and providing better control in terms of entry and exit positions. 

Multifunctionality:

The firm that led to the developments of the platform applied various different functionalities in creating a better environment for trading in forex and CFd tradable instruments. The platform has a plethora of analytics and trading tech plus, it offers a whole different range for the professional traders. When it comes to trading in CFDs and forex, the platform has a lot to offer. The key pillar of strength for the platform is the presence of algorithmic trading. It refers to the practice of automatic trading without the need of the trader to place and execute orders. Automated trading is done with complex trading systems. 

The RA’s or the expert advisors trade on the basis of a predetermined algorithm. To make things even barter, the IDE of the MQL4 is integrated into the platform. This enables the trader to create a personal bot-advisor for them. This trading bot can vary in terms of the complexity, depending on the trader. 

Most of the novice traders are not equipped with the knowledge of how to use the MQL4. to counter that, these traders can use the MT market app that is available on the play store. They can also use the code library. Here, the traders can find everything that they need to get efficient at trading and also, a variety of a  lot of different technical indicators, EA’s and scripts. 

Security:

The MT4 trading platform comes in with the 128 bit key encryption. This secures all the information that is exchanged between the traer and the terminal. The platform is also known to support a better security algorithm called the RSA. It is an asymmetric encryption algorithm. 

Programming language:

Both MT4 vs MT5 happen to use their own customized programming language. This in turn equips them with an ability to make customizations as the trader wants. MT4 is also thought of being the ideal platform for the novices because these people are not looking at creating their own trading strategies in the initial few months of their trading experience. They can learn about some of those online and easily incorporate them via the customization functionality provided by the platform.

Some more features:

MT5 offers netting while both the platforms offer hedging. When the traders consider which platform is better, they should rule out a few more things than just making everything about the cover of the book. Netting is used by a lot of traders to control their risk exposure. 

The MT5 trading platform also happens to have some more technical indicators as compared to the MT4 platform. The tools like the economic calendar helps the traders in tracking the relevant news of different foregin markets. Also, these offerings come with the cost of the platform being more complex to use. The timeline with which the trader gets comfortable with the platform is subsequently increased. 

The MT5 trading platform offers some more features like the multi thread strategy tester, the ability to transfer funds between accounts and the community chat. These are the features the predecessor does not offer. 

Now let us talk about the MetaTrader 5 in more detail:

Early Developments:

The MT5 is a multi asset, institutional and a multi function trading platform. However, the MT5 somewhere failed to achieve the cult status that the MT4 platform still has. The MT4 happens to be forex centric and the MT5 platform focuses on different assets like indices, cryptocurrencies and commodities as well. 

Just like the MT4 platform, The MT5 is also available for web and desktop. Apart from that, the platform provides services like a freelance database of people who specialise in creating strategies, a virtual hosting service and tsome built-in trading tools. The platform is differentiated in 31 different languages so that the traders across the globe can use it as per their convenience. 

With the 1281 which was a beta build, the MT5 offered hedging. Previously, only the MT4 could do that. Nothing like netting, hedging allows the traders to make multiple trades, even in 180 degrees to the same symbol. The traders can use the netting  model to hedge as well as trade against the same currency in trading of currency pairs and that is only possible because of the MT5 platform. 

The MT5 platform also offers the traders to enhance their order management capabilities. If the trader already has an open signal and still makes a new deal, a new position is opened for him or her. This thought was the core idea behind the MT5 platform and its hedging services. The traders are allowed to take their personal limits for the stop loss as well as the take profit levels. They can also see the different profit percentage for each position they take with the platform. 

Tick history download and the real volume data:

The MT5 trading platform helps the traders to consult and look at the downloaded history of trades from the broker. The MT4 only helped with the services like saving the data manually. The platform needed to be switched on for the whole day and still, some traders complained that they could not get a hold of all the ticks. 

While trading with the MT4, it was almost impossible for the traders to know what was the most traded cluster for a selected range.There, the traders had to use the M1 bars. This is a major drawback. With the MT5 trading platform, the traders gain access to the data of real time and real volume. 

This comes after the fact that the platform already provides the traders with thick data. The tick volume refers to the number of price changes that have already occurred in a particular bar. With the MT4 platform. The traders don’t know the real contracts or the real lots that have already been traded. 

Easy Order Ladder Trading:

This particular tool creates a viable space for accuracy that is unparalleled in terms of managing the positions. The traders are able to create and manage the positions with the help of an order ladder. The risk reward ratio is calculated on the go and the ladder is easy to set up. For instance, if the traders need to open a buy order that was previously pending, then they can easily click on the blue ladder button on the requested price.  Clicking on the This can be done by opening a market order and holding the shift key on the keyboard and hovering the cursor over the ladder. 

MT4 vs MT5 Comparing both the platforms in one go:

The MetaTrader 5 platform is faster than its predecessor. It does not mean that the system will be slowed down due to this the MT5 platform happens to run on a 64 bit system, while the MT4 can be run on a 32 bit window as well. MT5 runs on a 64 bit window because it is one of the latest developments by the firm and hence can run on the systems that run on a 4 bit setup. 

The traders need to set up an execution file before they install the software. It should be noted here that the MT5 platform can run on a 32 bit system too. However, the MT4 cannot work as efficiently on 64 bit systems. This is rarely the case and especially persists when the traders are using the VPS or multiple CPU cores. 

The server built ups of both the platforms are different. The MT4 has just one dedicated server and that server disrupts the communication with other servers The MT5 on the other hand provides other servers with different jobs. The servers work together and can achieve a better hardware utility and can also yield better results. The working of different platforms can help the traders to achieve resource optimization in a better sense.

There are 4 chief servers that the MT5 platform uses. The trade server, the access server, the backup and the history server. When it comes to the MT4, it only provides one server called the server engine. The MT4 platform provides the reports only in an HTML file type. The MT5 on the other hand, provides XML and HTMl both types of reports. 

HFTrading offers MT4 as the primary trading platform to its users. 

Are you looking for a broker that can help you to trade with the MT4 trading platform? We bring you the leading online broker HFTrading. The broker has been in the game since 2019 and has been providing its expert services ever since. With three chief trading accounts, the traders can trade on more than 300 CFD tradable assets. The three chief trading accounts that the broker offers are silver, platinum and gold. The broker happens to be regulated by more than one regulatory authorities and operates in the regions of New Zealand and Australia.

Conclusion:

MT4 vs MT5, We found out that the MT5 trading platform is a little bit more complex than the MT4 trading platform. The MT4 can run on a low spec system while the MT5 needs more juice. The whole idea of a trading platform is to use at per the reader’s convenience. The traders can use the platforms as they like but we recommend using the MT4 platform. It is made majorly for forex trading but since it focuses on one asset, it is the best when it comes to trading in currency pairs. The MT5 comes with more functions and hence comes extreme complexities. The platform cannot be used by novice traders. The traders need to understand that the platform can help them till the time they understand what is going on. When the platform goes ahead the trader to provide more ease, it sometimes moves towards complexity and that is exactly what happened with the MT5. 

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