If you’ve recently started forex trading or have been a seasoned trader for some time now, you must have come across the MetaTrader 4 and MetaTrader 5 platforms. These two are among the most popular trading platforms owing to their wealth of resources and tools.
However, one mistake that many traders make is confusion between the two. The MT5 is often seen as a merely upgraded version of the MT4, which is not true. The two platforms offer very different features and functions. So, each is suitable for a different group of traders.
To determine which platform best serves your trading goals, start by asking some critical questions.
What Assets Do You Wish to Trade?
The type of traders each platform attracts is perhaps the biggest difference. The MetaTrader 4 platform was designed to exclusively cater to forex traders’ needs. So, if you’re interested in dealing primarily in the forex market, MT4 is your ideal pick.
On the other hand, the MT5 platform was introduced to offer broader features, including futures trading, CFD, and stocks. This is not to say that this platform cannot cater to forex trading needs, but the tools and features are not as robust as MT4. So, using this solely for forex trading means compromising on performance.
If you trade in multiple assets, you should opt for the MT5 trading platform.
Number of Order Types
Again, the MT4 platform offers four main order types – buy limit, buy stop, sell limit, and sell stop. These four are enough for most traders (especially those starting). You can minimise risk exposure as you implement your trading strategy.
But, if you’re an experienced trader who wishes to leverage two more order types – buy stop-limit and sell stop-limit, you should trade using the MetaTrader 5 platform. These order types offer a higher degree of flexibility in buying and selling according to price movement.
Even the programming language used to develop MT4 and MT5 is different. This will naturally affect the features and trading capabilities that each platform offers. For instance – being more suitable for novice traders, the MT4 platform is built to provide features like easy installation and functioning.
But, the MT5 platform is built using more complex programming. Likewise, it also promises traders the ability to change or write their own algorithms to support their trading strategies. This also enables trades to be executed using a single function instead of the MT4 platform.
Chart Time Frame Offerings
Having more resources than one needs is also a waste of time. Based on this principle, the MT4 platform is built for simplicity. It, therefore, offers all the resources a beginner trader would seek sans the complicated or advanced features.
As a result, the MT4 platform allows traders to choose from nine different time frames. In contrast, the MT5 platform is built for advanced traders. So, it offers 21 different time frames. If you’re not a casual trader looking for well-informed trade executions, then you will significantly benefit from MT5’s offerings.
MT4 vs. MT5: No Clear Winner
So you see, the debate between MT4 and MetaTrader 5 platform is not about which is better as some traders think. Both are popular in a different circle of traders. What needs ascertaining is which is ideal for your personal trading needs.
Then, of course, the success of your trading will also depend upon the broker you choose. Australia boasts of many, but each can best serve different goals. Choose yours wisely.