MetaTrader 4 vs. 5

As a forex trader, you can choose the trading platform you prefer to use. However, your choice will usually depend on your Forex broker because not all brokers offer all types of platforms for you to choose from. Besides that, other brokers lack true compatibility with specific trading platforms, although they provide access via a bridge. This software piece is used to connect a trading system with a broker’s dealing system.

A bridge can work, but if it begins to malfunction or slow down, it could have adverse effects on your trade management and execution.

Which is more popular

The MT4 platform is quite popular and can be considered the industry standard. You will be hard-pressed to encounter a Forex broker that doesn’t offer it as a direct trading platform or as the in-house bridge to another program. MetaTrader 5 is also a trading platform but is offered less commonly by brokers. Still, both of them are among the most popular platforms worldwide.

Their popularity is mainly because of their tools and resources, which effectively take action and analyze positions. Both MT5 and MT4 are produced by the MetaQuotes Software Corporation, based in Cyprus. It is easy to assume that MetaTrader 5 is an upgrade of MetaTrader 4 from their names. That is not the case since they possess different features and perform different functions to suit diverse crowds.

Therefore if you are conflicted about using MT4 versus MT5, you need to consider various factors. Some of these factors are:

1. Type of assets you intend to trade

.The primary difference between these two trading platforms is the nature of traders they attract. MetaTrader 4 was explicitly designed with forex traders in mind, which is reflected by the functionality and features of this site. If you focus on forex trading, this software is better suited.

In contrast, MetaTrader 5 covers a broader base and is suitable for CFD, futures, and stock trading. Due to this, it also offers a wider range of features that might not be relevant to all traders. However, if you trade in different assets, you could get better value with this platform or your trading goals.

2. Chart Time Frames

MT4 is a platform that’s built for simplicity. Beginners and casual traders are less likely to require granular and complex time frame data. That makes it the go-to option as it is the simpler solution, availing the resources you need while excluding complex features that you don’t require. On the MT4 platform, you have nine different time frames to choose from when conducting chart analysis.

On the other hand, MT5 has 21 different time frames, a massive increase from MT4’s nine offerings. Most traders find all these customizable options unnecessary. Still, some traders can significantly benefit from the less common time frames. A good example is those trading in CFDs. A more diverse or experienced trader is likely to find this information beneficial for executing trades.

Take away

When it comes to MetaTrader 4 and MetaTrader 5, the better choice depends on personal preferences. They both offer swift executions and effective trading tools. To find out which is the best fit for you, analyze your trading preferences and habits, then choose one.