The MetaTrader Conundrum: MT4 vs. MT5 for the Advanced Trader

Choosing the optimal platform for experienced traders is crucial. As an advanced market participant, you need to realize the importance of using reliable and comprehensive trading software. MetaTrader is the world’s leading platform for investors of all types despite the strategy and approach.

Developed by MetaQuote, the software provides seamless access to a variety of assets you can buy and sell worldwide. What’s more, the platform comes with a selection of tools for backtesting, risk management, technical analysis, and more.

Right now, two versions are available for users. The only question is which one is better. So, in this article, we will provide an in-depth comparison of MetaTrader 4 and MetaTrader 5 to let you choose the one that totally meets your trading needs.

Introduction to MT4 and MT5

Before starting the MT4 vs MT5 rumble, let’s briefly introduce both platforms along with their key features. Both versions were developed to let users seamlessly trade across a variety of markets. It helps one buy and sell currencies, CFDs, stocks, futures, and other assets.

MetaTrader delivers real-time market access. Users can track asset prices and monitor different market conditions. Scalpers can advance from multiple orders opened at a time. The software ensures fast position processing. This is what makes it perfect for both beginners and pros. However, some market participants still wonder what to choose: MT4 or MT5.

Description of MetaTrader 4 and MetaTrader 5 as Platforms for Trading

MT4 is extremely popular with traders worldwide. It provides access to all major assets in addition to commodities and index instruments through CFDs. The software makes it possible to track prices in real time as well as use an extended toolkit to perform either fundamental or technical analysis.

What’s more, the software was built to let users automate trades and open positions on autopilot whenever specific market conditions are met. MetaTrader 4 contains customizable charts and features to customize it following your trading preferences.

MT5 provides multi-asset trading experience. It is perfect for trading currencies, futures, and stocks. The software was designed to perform price analysis. Users can benefit from an advanced toolkit for algorithmic trading. It involves advanced trading robots, built-in Expert Advisor, and many more.

Advantages and Disadvantages of each Platform

To understand how to choose between MT4 and MT5, we need to clarify their main hits and misses. MT5 is a newer version of MT4. Launched in 2010, it is believed to provide more up-to-date features with exclusive indicators, improved charting experience, etc.

Nevertheless, many advanced traders still prefer using the platform’s previous version. Why is it so? Let’s have a closer look at their key features.

Key Features of MT4

As stated earlier, MetaTrader4 is still the number 1 choice for millions of market participants worldwide. The key benefits of MT4 for traders involve:

It is free. No paid plans or subscriptions are required.
Advanced toolkit. The platform comes with 30+ built-in indicators to perform technical analysis. It offers 3 options for order execution depending on your strategy. Additionally, you can set positions within 9 different timeframes.
Customization. All integrated tools (technical indicators, advisors, or even scripts) can be customized or constructed from the ground. However, you will need some programming background.
Backtesting. A crucial feature for beginners. It helps them test and evaluate the potential effectiveness of the strategy before implementation under real-market conditions. No other software has this particular functionality (except for MT5).
Security. MT4 is totally safe to use. Developers utilized 128-bit encryption with a digital signature added to maximize traders’ safety.

For decades, MetaTrader4 users have been forming a global community. Anyone can find numerous free tutorials, guides, or recommendations on how to configure the platform.

Overview of the main characteristics of MT4.

The above-mentioned features make the software perfect mainly for new traders. Besides, the majority of brokers and Expert Advisor providers support it. However, markets evolve all the time.

This is where investors might need a bit more flexibility, which MT4 is unable to provide. For instance, you will be unable to change the Fibonacci structure. What’s more, the software has less advanced features than MT5.

What types of assets and instruments does MT4 support?

MetaTrader 4 was developed with the Forex market in mind. The platform was meant to trade currency pairs. However, clients can access other instruments such as commodities or indices via CFDs. Investors may count on 100% reliability.

The software is optimized to ensure good performance order execution speed and processing power. On the other hand, some of these parameters will depend on the broker you choose

Popular indicators and advisors for MT4

Technical indicators in MT4 help users perform different types of analysis. They are used to predict price movement and market conditions. Generally, these tools are designed to identify trends, highlight support and resistance levels, and track the market volatility and momentum.

Whenever you use any indicator, you make a well-informed trading decision. It can definitely improve the overall strategy. Different traders use different indicators. The selection depends on a particular approach to an asset. The following 3 can be used as the foundation of your trading experience with MT4:

Trend Magic Indicator – a custom indicator that relies on specific algorithms used to generate trading signals. Users can identify trends or reversals via the blend of candlestick patterns and moving averages.
Aroon Indicator – it measures the trend’s strength within a given period. It helps you define potential reversals.
Gentor CCI – the indicator delivers more accurate trading signals. It helps users minimize the number of false signals and reduce the market noise.

Overview of the main characteristics of MT5

On the one hand, MT5 is not as user-friendly as MT4. It makes it a worse choice for novice traders. Besides, not so many brokers support the newer version of the platform. That can also be a challenge for beginners who might look for a bit simpler interface.

On the other hand, MT5 comes with updated functionality and features that make the software perfect for seasoned technical traders and proven experts who look for enhanced functionality.

Key Features of MT5

The main feature of MetaTrader 5 is the ability to provide a so-called market depth. Developers increased volumes to make the stock market visible to investors. Users can see the closest bulls’ and bears’ bids along with the price direction.

Additionally, advanced traders will appreciate the order-tracking functionality. It utilizes a netting mechanism to see all opened positions on an asset on one chart in a single order. In simpler words, there is no need to monitor multiple transactions separately. You have all your orders in one place.

Differences between MT4 and MT5 in terms of available assets and functionality.

Definitely, MT4 comes with fewer functions. Besides, it looks simpler in terms of interface and integrated tools. This is what makes it a better choice for novice investors taking into account a well-developed community to dive into.

However, we are talking about the platform’s use for experienced traders. This is where MT5 looks like a better option. Though it is not suitable for rookies and very few brokers support it right away, it still includes extremely powerful and up-to-date order types, execution modes, and technical indicators perfect for seasoned and advanced traders.

Innovative tools and features of MT5

Just like MT4, the newer platform’s version comes with a built-in strategy tester. This time, the backtesting feature was extended to deliver better testing accuracy. Besides, developers added graphical objects for enhanced visualization.

From now on, traders can opt for non-standard timeframes or even add extra scripts to customize them. Last but not least, users have more tools to perform enhanced technical analysis with more indicators to choose from. Here you will also find some risk-management instruments such as pending buy/sell stop limit.

Using MT4 and MT5 for Different Trading Strategies

Before selecting a strategy, you need to define the asset and market you are going to perform. Also, the future approach will depend on the trading personality. Are you a natural-born scalper to handle multiple orders at a time? Oppositely, would you like to hold longer-term positions in 1 or 2 assets?

These are the questions you need to answer. MetaTrader will do the rest. Customizable software can be applied to any strategy.

Which trading strategies and styles are best for MT4?

In the final round of our MT4 vs MT5 rumble, we have a user-friendly MetaTrader 4 in the red corner. A simple interface, good enough charting capabilities, and a selection of technical indicators make it a good option to apply different strategies. For example:

Trend Trading - one of the most popular techniques with MT4 users. The idea is to detect the trend movement and prevail it to maximize profits.
Breakout Strategy – the principle is to identify support and resistance levels and open a trade when the price breaks through those levels.
Scalping Strategy – a short-term approach where you can open numerous orders to make small profits throughout the day.

Which trading strategies and styles are best for MT5?

Beginners may find it overwhelming to apply strategies with MetaTrader 5. But, if you are an advanced trader, you can benefit from customizable techniques that can bring you success. The following strategies will work with MT5:

Minute Charts – an effective day-trading approach where users utilize minute charts to get snapshots of price movements within a shorter time frame.
Short Selling – the idea is to sell an asset before actually owning it. Traders expect the price to drop. As soon as it falls, they buy the asset back to make a profit on the price difference.

Comparative analysis of the effectiveness of two platforms for different types of trading.

MT5 is more suitable for advanced trading strategies. Oppositely, MT4 works better for traditional and time-tested approaches. The newer version comes with an advanced system to manage orders. It helps pros open positions faster, which might be crucial for a specific technique. What’s more, MetaTrader 5 delivers more order types. Meanwhile, both versions provide tools for automated trading.

Choosing Between MT4 and MT5

Both of these programs offer tools to simplify the process of performing technical analysis. They help traders quickly test and launch preferred strategies and access a variety of instruments. However, the choice will totally depend on the level of your trading background.

Novice users will find MT4 simpler to start with. Besides, it delivers all the baseline features you might need from the start of your trading career. It is compatible with a bigger selection of brokers and Expert Advisor providers.

MT5 brings more technical indicators and advanced features to one place. This fact makes it a good option for advanced traders.

Factors to consider when choosing between MT4 and MT5

First of all, you need to be 100% sure a chosen broker supports the platform’s version you need. Generally, trusted companies provide links to download and install the software to get started within the broker’s infrastructure.

Secondly, make sure you realize how to use all the features provided. Otherwise, you will not be able to make the most of the software. What’s more, you can miss some crucial features. Try the platform in the test mode or use a demo account.

Thirdly, make sure the platform meets your strategy goals. If you utilize a baseline scalping strategy, you will hardly need advanced technical indicators. Oppositely, customized techniques like short selling may require better order management functionality.

Tips for determining which platform is best for your needs.

Traders should realize their background and market experience. Diving deep into the complex software without understating its use will make no sense. What’s more, it may lead to a total failure. So, the main tip is not to overestimate your abilities. It is better to start small and move forward step-by-step learning from the best.

Experience of successful traders with MT4 and MT5

Generally, users agree on the fact that MT5 is faster in terms of order execution. It is more efficient. However, it will never replace the previous MT4 version. At the same time, comparing the two programs is not quite correct. We should consider them as separate systems that serve specific trading needs.

Conclusion

Both platforms were developed to ensure the best trading experience. Each version provides access to different markets and assets available for trading. Advanced features and extended community make them simple to get started with though the latest version was designed mainly with advanced traders in mind.

Conclusion

Conclusions on which platform, MT4 or MT5, may be the best choice for experienced traders.

If you are not new to the market and are looking for advanced trading approaches, MT5 is a better option. It is faster and more efficient letting you apply different techniques and improve your day-trading experience.

Those who only start exploring the financial market would rather opt for MT4. It is a simpler software with all major tools and features to perform technical analysis, backtesting, and more.

The importance of choosing a platform that suits your individual trading goals and strategy

Choosing the trading software that meets your needs is vital. It will define your future success as well as the available toolkit you will have throughout your entire trading career. Generally, MetaTrader will be your long-term partner while performing across different financial markets.