MetaTrader 5 (MT5) and MetaTrader 4 (MT4) are both widely used softwares in the world of trading. Both trading platforms are developed and offered by metaQuotes Software corporation and the constant updates that are being brought by the developers keeps these two platforms on the top of the list for global traders. While MT4 has been the preferred choice for many traders over the years, MT5 has emerged as an advanced and improved version. But many traders are still reluctant to transition to this newer version of MetaTrader as they think of it as complex and overwhelming. Still, there is no doubt in the fact that MT5 is considered to be better than MT4 in many aspects. Today, we will briefly review both the platforms to see why MT5 is thought to be a better choice.
Firstly, one of the key advantages of MT5 over MT4 is its multi-asset functionality. MT5 allows traders to access various financial markets, including stocks, commodities, and futures, in addition to forex. This expanded range of assets enables traders to diversify their portfolios and explore new investment opportunities within a single platform, eliminating the need for multiple accounts or software. Secondly, MT5 offers superior trading tools and analytical capabilities compared to MT4. The platform provides an extensive selection of built-in technical indicators, graphical objects, and analytical tools, empowering traders with comprehensive market analysis capabilities.
Moreover, MT5 supports advanced order types, including stop-limit orders and market depth, enabling traders to execute more sophisticated trading strategies and manage their positions more effectively. Another significant advantage of MT5 is its improved backtesting and optimization features. Traders can develop and test their trading strategies using historical data, optimising their parameters to achieve better results. MT5’s Strategy Tester allows for more accurate and reliable backtesting, enabling traders to assess the performance of their strategies under different market conditions and make informed decisions based on the results.
Furthermore, MT5 offers an enhanced programming environment for traders who prefer to develop custom indicators, expert advisors, and scripts. The platform supports MQL5, a powerful programming language that provides more flexibility and functionality compared to the previous MQL4 language used in MT4. This upgrade allows traders to create more complex and sophisticated automated trading systems, giving them a competitive edge in the market. Lastly, MT5 boasts improved connectivity options and a more advanced trading infrastructure. The platform supports FIX protocol, making it easier for traders to connect with liquidity providers and access deeper liquidity pools.
Additionally, MT5’s distributed architecture allows for faster order execution and improved reliability, minimising latency and downtime. In conclusion, while MT4 has been a popular choice among traders for many years, MT5 has surpassed it in several aspects. With its multi-asset functionality, enhanced trading tools, advanced backtesting capabilities, improved programming environment, and superior connectivity options, MT5 offers a more comprehensive and flexible trading experience. But it is also true that beginners may have to spend some more time to get comfortable with the platform.