Forex Industry is the most popular industry in the world of liquid currency exchange. Brokerage agencies profit around four million dollars daily. Furthermore, it has attracted the attention of millions of brokers around the globe. FX trading doesn’t allow the presence of any centralized bank. As a result, foreign exchange trading takes place from one place to that of another. A new trading platform has been introduced in the market to carry out FX trading successfully. The trading software is known by the name Meta Trader 4 and Meta Trader 5. Recent statistics reflect that Meta Trader 4 is used by many brokers than that of Meta Trader 5.
In this blog, you can find out some of the differences that exist between MT4 and MT5. Some of the point of differences between both these trading platforms are as follows:
- Fundamental Analysis (news trading)
- Indicator and Analytical Objects
Let us discuss it in more details
Installation: When it comes to installing Meta Trader 4, it is simple and easy to install. Whereas, Meta Trader 5 installation is not as simple as that of Meta Trader 4. In MT5 manufacturer’s demo trading server (MetaQuote) is a default one. While in the account opening phase, one can add the MetaQuote server. Even you get an option to add a new trading server from MT5.
Chart/Timeframe: There are nine-time frames included in MT4. Limitations to the number of charts exist in MT4. Furthermore, there exist 21 timeframes ranging from one minute to 1 month in MT5. Also, it comes up with an unlimited number of charts. You can open one hundred graphs in MT5.
Fundamental Analysis (news trading): The MT4 trading platform doesn’t include the Forex Economic calendar within it. On the other hand, the MT5 platform has an inbuilt FX economic calendar tab with some highlighting features like a news event, schedule, impact, forecast, and earlier events.
Commerce/Market: The market utility tab isn’t inbuilt with the MT4 software. One needs to visit MQL4.com to avail any of the products in the market place. Meta Trader 5 has an inbuilt market utility tab present within it. One can directly buy FX products with the aid of the market tab.
Indicator and Analytical objects: MT4 have more than 30 inbuilt indicators already present within it. The MT5 has 38 inbuilt analytical indicators within it. There are 22 analytical objects and 46 graphical objects added to it.
Orders: MT4 has two market orders, and four pending orders present within it. More order types available within MT5. There are two market orders, six pending orders, and two stop orders.
Interface: The interface of MT4 is easy to navigate when compared to that of MT5. It is the one-click trading feature and the drag and drops functionality features that make it more user-friendly. There exist slight differences in the platform’s interface of MT5. A search box and details tab on the market watch window is present within this software.
Trading (Hedging and FIFO): There are no restrictions on any trading method in MT4. Broker regulations are present on their proprietary MT4 platform. Furthermore, MT5 doesn’t support hedging of trades and also implements the FIFO policy by default.
Brokers: Most of the brokers like to use the MT4 trading platform. Furthermore, brokerage agencies don’t prefer to use MT5.
In conclusion, MT5 having all the advanced features is not in popularity. On the other hand, MT4 is easy to use and always preferred by brokerage agencies.