Since its introduction in 2000, the well-known MetaTrader 4 (MT4) trading platform, developed by MetaQuotes, has excellently served its purpose as the bridge between individual forex traders and the forex market. However, after a long time, people find that there are many things about this platform that just can’t meet their requirements anymore. As a result, MetaQuotes had to developed an updated version of this platform. In 2010, MetaTrader 5 (MT5) trading platform was introduced. Today, we’re going to start a fight: MetaTrader 4 vs 5 to see which platform is the better.
MetaTrader 4 vs 5
The design of MT5 is almost the same as MT4 trading platform, with the main layouts including Navigator, Market Watch, Trading and Charts.
The most significant changes are the redesign of buttons (display buttons) that look as nice as those that show a background, bar, and line chart. Basically, at the first glance, you probably won’t be able to tell which is which.
The time frame
In addition to the standard time frames like MT4 including: M1, M5, M15, M30, H1, H4, D1, W1 and MN, MT5 also provides many more different frames for you to choose such as M2 , M3, M4, M6, M10, M12, M20, H2, H3, H6, H8, H12.
On the MT4 platform, if you want to use more time frames, you will need to install special scripts written specifically for MQL4 language. Whereas with MT5, you only need to click on the control panel at the top and then add the time frames you want to the chart.
With MT5, you can use the mouse to drag the Stop Loss or Take Profit points to wherever you want and drop it there. This feature is available in all modes and it is considered as the default in MT5.
With MT4 software, you can only use this feature when you’ve activated the One Click Trading mode. If the One Click Trading mode is disabled in MT4, it is more difficult to modify your Stop Loss or Take Profit orders than MT5.
MetaQuotes has improved the analysis ability in MT5 trading platform. All the lines, symbols as well as other graphing tools have been changed. The number of indicators has also increased, search and settings have become easier. With MT4, you will have to download the indicator files, then copy them to the indicator directory, then restart MT4 to use it.
The bottom of the device in the Toolbox section is integrated with 2 new tabs. First, the Company tab helps traders get access straight to the trading section of the broker website. In addition, you can go to the schedules of trending economic events quickly by the Calendar Tab That’s right! You don’t have to go to the Forex calendar from a third party like you used to with MT4. In addition, economic events in the calendar are also displayed directly on the chart in the form of a banner with specific timelines that MT4 does not have.
Previously, MT5 did not support hedging, but thanks to an update in April 2016, hedging was added to MetaTrader 5 just like MT4.
However, if in MT4 this form you will be defaulted, then at MT5 when opening an order you may be able to enter more requirements during the process of opening an account or opening an order (depending on the trading platform), the new hedging is allowed. Authorization applies to your account.
The MetaTrader 5 platform provides traders with more various financial tools than MT4. Forex traders can choose financial instruments not only for currency, metal and CFD pairs, but also for futures, equities, stocks and indices. Unlike MT4, because MT5 is close to the nature of the OTC centralized market, they are easily adjusted to make it easier to handle ETF transactions.
MetaTrader 5 also provides market depth to see relevant prices and volumes for any trading assets that you would like to see. And MT4 software can not implement this feature.
Compared to MT4, the MT5 device has greatly improved reporting features, such as enabling the setting of reports as open XML documents that can later be extracted in Calc or Microsoft Excel. This can be very useful in analyzing trading strategies.
Meanwhile MT4 only allows traders to save reports as a HTML file with the common method. If they want Excel/Calc reports, traders have to use a 3rd party script. MT5 has replaced this method with an easier solution. In addition, MT5 provides reports in all languages as long as it is available on the platform, while MT4 can only generate reports in English.