The traders’ community often discusses the best trading software they can use for executing trades with perfection. The most popular trading platforms global traders use are the classic MetaTrader 4 and advanced MetaTrader 5 platforms. Both MT4 and MT5 platforms were developed and launched by the same company called Meta quotes corporation in 2005 and 2010, respectively. Both of them have many similarities and differences, which stirs the debate about the better platform.
Today we will find an answer to this question by reviewing and comparing the MetaTrader platforms. So, let’s see if MT5 is actually better than MT4 or not.
What is MT4?
As we mentioned earlier, MT4 was released as a powerful and user-friendly forex trading platform in 2005. Although it was possible to trade other asset classes like stocks and commodities on MT4, the developers’ main focus was to make the platform fit well with the volatile forex market. In fact, MT4 was one of the very first platforms that was specifically designed to be of use to forex traders. And MT4 has successfully retained its spot as the standard forex trading platform for all these years. It had all the basic and essential trading tools that a forex trader would need for market analysis, allowing them to carry out the trading process easier.
What is MT5?
MT5 was launched as an updated and modernised version of MetaTrader as it had many additional tools and features that weren’t in the previous version. Even though MT5 is considered to be the successor of MT4, the developers have tried their best to make it different from the classic platform by promoting it as a multi-asset trading platform and not just a forex trading software. Still, MT5 couldn’t capture that much attention in the initial phase as MT4 users didn’t feel the need to switch to the newer version. But, more and more traders are slowly transitioning to MT5 for a superior experience with advanced capabilities. Still, many beginners are hesitant to try MT5 as they find it a bit more complicated than MT4 due to the extra tools and features.
MT4 VS MT5 – Analytical Objects
The number of analytical objects that you can use on the MT4 platform is 24, which is quite enough for most traders. But MT5 has added many more analytical objects, making the number 46 more suitable for detailed market technical analysis. One important difference that you can see between MT4 and MT5 is that the latter has added Eliott tools to the platform. Many modern traders use Elliot tools, and MT5 has integrated them as an advanced tool into their platform for the same reason. Besides this, you will find all the commonly used graphical objects belonging to various categories on both platforms. This includes:
- Geometric shapes
MT4 VS MT5- Tradable Assets (Markets)
As we said earlier, MetaTrader 4 is always mentioned as a fully functional and feature-rich forex trading platform, but besides that, the platform has all the tools that you would need for navigating other markets. So, you can diversify your portfolio by trading different asset classes on the MT4 platform. Many have this misconception that MT4 cannot be used to trade cryptocurrencies, but that is untrue. You can find and trade all of the following trading instruments on the MT4 platform by opening a trading account with a broker offering these asset classes.
- Precious Metals
- Forex majors, minors and exotics.
Talking about the tradable assets on the MT5 platform, You can trade all of the asset classes listed above but can also trade other complex instruments like bonds, futures, options and ETFs with greater ease.
MT4 VS MT5- Technical Indicators
Technical indicators are an inseparable part of technical analysis for traders. They add more clarity and precision to the analysis making it easier for us to spot the right trading opportunities based on our strategy. Using indicators simplifies the process of planning the trades as traders can determine the optimal entry points and exit points of their trades without any confusion. So, MT4 and MT5 platforms come with built-in indicators that anyone can easily use. Both platforms also allow us to download and use custom indicators if they are compatible with the software.
Regarding the actual number of technical indicators on MetaTrader platforms, MT4 offers 30 built-in indicators, and MT5 has added 8 more, making the number 38 in total. You can add custom indicators on both platforms, but they may not be free like the built-in indicators.
Trading calculators can be a valuable tool for traders who prefer a more streamlined approach to their technical analysis. These calculators are designed to help traders quickly determine things like position size, risk-reward ratios, and other important metrics. They can also help analyse potential trade outcomes before entering a position. Some popular trading calculators include the Fibonacci Calculator, Pivot Point Calculator, and Position Size Calculator. While they are not built-in for the MT4 or MT5 platforms, traders can easily find and download these calculators from various sources online. By integrating trading calculators into their technical analysis, traders can gain a more holistic view of the market and make better-informed trading decisions.
MT4 or MT5- Which One is Ideal For You?
This is the most difficult question to answer, as both platforms have their own capabilities and limitations. So, the best of the two will depend on the interface, tools, and features a trader wants for a smooth trading process. Each trader is different and may have different preferences regarding user-friendliness and the number of tools they get while trading. Many traders choose MT4 for its simplicity and traditional layout, and many opt for MT5 as they want more advanced tools for executing complex strategies and navigating multiple markets.
Those who use MT4 may find MT5 to be a very extravagant platform, as many of the tools and features offered may need to be more useful for them due to their simple strategies and trading style. But modern traders who want to advance their skill level by adding better tools to their trading space will surely find MT5 an ideal platform, as it is a complete package of sophisticated tools and features demanded by pro traders. On the other hand, beginners may find the additional tools of MT5 overwhelming and may find the MT4 platform more suitable for learning.
To summarise, MT5 is a better platform than MT4 due to the added features and tools. MT5 is also considered more stable and faster than MT4 due to the advanced technology in use. But this does not make MT4 inferior in any aspect, as it was the first-ever complete forex trading platform and is still being actively used by millions of traders worldwide. So, it is safe to assume that MT4 will continue to stand strong as the most popular trading platform for a long time. But being open to other options and taking time to explore the suave MT5 platform can be a game changer for every trader.
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