Nowadays, main place of work of a trader is an online terminal. The most popular terminals are produced by MetaQuotes Software Corporation. Two terminals, designed by this company and equally liked by traders, are now competing with each other in the market. These are Metatrader4 and Metatrader5. Traders have to make the right choice, selecting one of them. Have you also faced this problem? In this article we will not give you a straightforward answer to a question what terminal to choose; but we will take a closer look at the main difference between them and get a view of their main functions. It might help you drive to your own decision.
How was Metatrader5 created?
By the moment of launching Metatrader5 in 2010, its “elder brother” Metatrader4 has already become a popular terminal. MT5 was designed as the updated version of the Metatrader4 and, in many ways, it has excelled its “elder brother” at its qualities. Updated interface and wider range of functions distinguish the new terminal from MT4. However, the best is sometimes the enemy of the good. Some improvements introduced to MT5 were not eagerly accepted by the users.
- One of the minor innovations was the expansion of timeframes in MetaTrader5, which include М2, М3, М4, М6, М10, М12, М20, Н2, Н3, Н6, Н8, Н12. Note that, MetaTrader4 also can extend the range of timeframes. If timeframes in MetaTrader5 have been inbuilt by the designers, in MetaTrader4 a trader can create his/her own timeframes with the use of "period_converter”.
- Other innovation was borrowed from the stock market trading. MetaTrader5 interface has options of “market depth” and “one click trading”. Market depth option shows a trader the price of the sell and buy orders of a selected trading instrument and the amount of every order. MetaTrader4 does not provide these options. However, you can install One Click Trading and Market Depth in MetaTrader4 using plug- in function.
- Terminal MetaTrader5 has inbuilt economic calendar. Availability of analytics is a big advantage of the terminal. At the same time, many traders prefer to use other online sources providing reliable analytics.
- f you prefer to use wave analysis for trading you will appreciate a new function available in MetaTrader5, which indicated degrees of Elliot waves on the chart. Note that, you can set up any wave indicator in MetaTrader4. However, the advantage of MetaTrader5 is that the indicators are already there.
- MetaTrader5 provides a generator of expert advisors (EA), enabling a user to set up his/her own advisors in the terminal.
- MetaTrader5 priveds a trader with a quote history in the minute timeframe.
- For traders who use trading advisors for trading MetaTrader5 provides an option of rapid optimization: a user can test advisors for several financial instruments simultaneously.
Trading in MetaTrader4 and MetaTrader5
- MetaTrader5 does not allow hedging and multi hedging, which are the key features, which most traders are concerned about when choosing a trading platform. The MetaTrader5 will not let traders to hedge if they want to trade on two systems. At the same time, these functions available in MetaTrader4.
- Developers of MetaTrader5 have changed the pattern of open orders. If in MetaTrader4 a trader can see every open order, in MetaTrader5 all open orders for a specific trading instrument are stuck together.
- MetaTrader5 facilitates the process of placing orders, enabling a trader to change “Stop Loss” and “Take Profit” by the click of the mouse. In MetaTrader5 you can transfer these marks to the desired location by a cursor.
Benefits of MetaTrader4
Although, MetaTrader5 has got a user-friendly design, MetaTrader4 does not lose its popularity and is still widely used due to huge number of indicators, scripts and advisors, which have been developed for this platform. Due to high popularity of MetaTrader4, there are plenty of programs which are available for this terminal.
More and more programmers choose MetaTrader5
For creating a new trading platform in the currency market the developers of MetaQuotes Software Corporation has used С++ programming language. So, programmers of С++ have got ample opportunity for making improvements and updates in Metatrader5.
Who will find it easy to change over to Metatrader5?
It is easier to change over to Metatrader5 for those investors, who came to the Forex market not long ago, as these people do not have long-term trading habits. Are you a beginner? Then, it will be easier for you to master Metatrader5, as you do not need to change your trading habits or look for new advisors (the advisors used in Metatrader4 are not suitable for Metatrader5). You will start from the scratch and learn quickly.
For the expert traders the idea of shifting to Metatrader5 may seem unreasonable, as they feel happy trading on Metatrader4.
What will happen next? Time will show.
As you can see Metatrader4 and Metatrader5 do not differ too much. New terminal is more interactive, as it was developed with the use of modern technologies. However, Metatrader4 is valuable as it has been adjusted through the use of thousands of traders, who some time ago, were pioneering explorers too.
Good luck in trading!
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.