The MetaTrader platforms are undoubtedly the most popular platforms in forex trading. These platforms are the quintessential trading tools and they perfectly manifest how effective trading can be when you have the right tools.
MT4 and MT5 have been on the market for a considerable amount of time and they both have an immense number of users. MT4 is the older of the two having been on the market since 2005. MT5, on the other hand, has barely been around for a decade but it has seen its popularity go up within a short time.
Many traders who are accustomed to either of the two MetaQuotes platforms know what exactly they like about their chosen platform. But for those who might not have used them, there is always the mystery of which platform is better of the two. To help you with your selection process, we will take a look at the two platforms and what makes them individually great.
Starting off with the most recent version, you can observe several improvements and changes to the platform. Metatrader 5 boasts of bringing improved speeds and new features to the platform. There is often a misconception that MT5 is simply a newer version of MT4 but this is not entirely true. This platform brings in new features that are not available in the former platform. The user interface, layout, and usability remain the same as MT4 but the target user base for MT5 is essentially different. MT5 enables users to trade stocks and commodities while retaining the common forex features used in MT4.
This platform also has a centralized exchange market which is quite unique. The blending of these features makes the platform capable of handling tasks that most other platforms in the market cannot. There are also additional chart timeframes included in this version of MetaTrader. The platform also lacks some features that can be found in MT4. Users of the platform cannot do hedging, for instance. MT5 and MT4 both have a MetaTrader supreme edition that boosts the trading experience. In short, the MT5 platform is not simply an improvement of MT4 but a platform that is designed to address the user needs of a certain market. This makes it a totally unique product even though some of its features can be seen in MT4.
Which one should you use?
In order to determine the right platform for you, you need to consider the features which are exclusive to each platform. Here is a quick look at what each of the platforms offers exclusively.
Metatrader 5 offers:
- Access to commodity and stocks markets.
- Centralized trading
- Additional technical indicators
Metatrader 4 offers:
- Access to hedging and LIFO trading strategies
- Decentralized trading
- A wider resource base for forex traders and brokers
As you can see, you cannot simply substitute MT5 for MT4 or vice versa. Traders who specifically want to access stocks and commodity markets will be forced to use MT5 as it is the only platform among the two that does the job well. Traders who want to have a remarkable forex trading experience will, on the other hand, find it much smarter to use MT4 instead of MT5. The two platforms also use completely different programming techniques and programs available on either cannot be used on the other. This makes it impossible to seamlessly transfer features between the two.