MetaTrader 4 For Forex Trading vs. MetaTrader 5 For Multiple Markets
Is MetaTrader 4 better than MetaTrader 5? Which should you choose if you are a Forex trader? How about for stock traders? Choosing a trading platform can be daunting as there are a lot of options and different features to consider. But when you say the best, there is this one trading platform that’s been receiving praises from satisfied Forex traders. It’s the MetaTrader 4 from MetaQuotes Software. This trading platform remained popular even when MetaQuotes released an upgraded and newer trading platform, the MetaTrader 5.
One particular difference of MetaTrader 4 against MetaTrader 5 is that the older trading platform focuses more on CFD trading and Forex trading. Although MetaTrader 5 can also deal with CFD and Forex, it has a wider market including futures and stocks. Another thing about MT4 is that it has hedging only while MT5 both have netting and hedging. When it comes to algorithmic trading, the newer trading platform has a multi-currency strategy tester which makes it faster in testing as well as optimization compared to the MetaTrader 4 trading platform which is now the older trading platform among these two.
Should you choose MetaTrader 4 over the other or the other way around? Before you can answer that, you should check a more detailed comparison of these two trading platforms.
Number of Markets
MetaQuotes dominated the trading industry when they first released the MetaTrader 4. Indeed, it is a revolutionary trading platform. But the thing is, MetaTrader 4 is focusing so much on Forex trading and CFD trading. The assets are limited and yet traders and investors are becoming more interested in other markets such as stocks, commodities, and futures. Then, the MetaTrader 5 was launched. It gives access not just for Forex trading and CFDs but also for other markets. Gaining access to other markets is so important to experienced traders who want to trade on shares with famous companies like Amazon and Tesla. But if you are an average, new trader, you may not appreciate this feature so much especially if you are not so adept with the different things about trading.
When it comes to their built in-indicators, there are 30 for MetaTrader 4 and 38 for MetaTrader 5. MetaTrader 4 also has 2,000 free custom indicators, 700 paid indicators, and 24 analytical tools. MetaTrader 5, has 44 analytical objects and an unlimited number of charts compared to MetaTrader 4 which only has 128.
Another convenient feature of MetaTrader 5 is the Economic Calendar which is not available in MetaTrader 4. This feature is very important in keeping updated with the latest news in the market which could impact the price movement in the market. Since MetaTrader 4 doesn’t have an Economic Calendar, traders mostly use the Forex Factory calendar to track economic events.
Now that you’ve known some of the major differences between MT4 and MetaTrader 5, you should know that MetaTrader 4 is for Forex traders and CFD traders while MetaTrader 5 is for multiple markets. It is now your turn to decide which trading platform matches your choice of market.