TABLE OF CONTENTS
WHAT YOU SHOULD KNOW
- MetaTrader is the current industry standard when it comes to retail trading
- The software was first introduced in 2005
- The application is available on both desktop and mobile platforms
A trading platform is a software program that provides an interface for traders to buy and sell financial assets on a computer. It is a tool that enables traders to execute trades and manage their portfolios. The program typically provides a user-friendly interface and is equipped with a range of features, such as charting tools, newsfeeds, and order
MetaTrader Trading Platforms
Developed by a third-party trading company MetaQuotes, The MetaTrader software is a trading platform that traders use to place and manage their trades. The software provides a user-friendly interface and a range of features that allow traders to monitor the markets, place orders, and track their positions.
Most broker nowadays supports the all-time famous MT 4 and 5 platforms. Traders can download them from the brokers’ directory. The mt4 vs mt5 is a common debate amongst top investors every now and then.
Released in 2005, MT4 is one of the oldest and most popular trading platforms amongst retail traders. It allows market participants to place their positions via market or pending orders and use different algorithms present in the marketplace. Investors can also use the MQL 4 language to code their own systems. One-click trading is available for day traders and scalpers for quick executions.
MT 4 has a total of 9-time frames with multiple inbuilt technical indicators for market analysis. Your data is encrypted via RSA digital signatures. The platform is also available on the mobile phone for trading on the go.
The interface of the MT 4 platform.
MT 5 is the parent to the MT 4 platform, which offers up to 21-time frames and the option to open over 100 charts. It hosts multiple execution modes, advanced level 2 market data, netting, and hedging modes.
The MQL 5 marketplace also hosts multiple trading algorithms that are built exclusively for the MT 5 platform. Traders can easily use the multi currency strategy tester to backtest their trading algorithms.
The trading interface of the MT 5 platform.
The Similarities between MT4 vs. MT5
The Differences between MT4 vs. MT5
The main difference between the two platforms is that MT4 is mostly used by retail traders, while MT5 is more geared towards institutional traders. MT4 is also more popular, with more brokers offering it as a trading platform.
• Coding gives the first difference as MT4 has MQL4 and MT5 has MQL 5
• Level 2 market data is available only on MetaTrader 5
• The time frames on the MetaTrader 5 platform are 21 compared to only 9 on MT4
• Six pending orders are available with MT5, whereas MT4 has only four
• Netting is allowed on the MT 5, while the MT 4 only supports hedging
• Most of the algorithms on the MQL 5 marketplace are available only for the MT 4 platform
• The built-in technical indicators are widely available on the MT5
• An economic calendar is accessible only on the MT 5 platform
• The trading interface of the MT 4 platform may be more pleasing to a beginner
• The strategy tester is much more advanced on the MT 5 platform than on the MT 4. As mentioned before, it hosts multicurrency backtesting.