MetaQuotes is a leading software development company that builds trading platforms and other applications for brokerages, banks, and exchanges.
They’ve also dominated the Forex & CFD trading space for over a decade with their popular products such as FX Charts and MetaTrader 4, popularly known as MT4.
This is because MT4 is the most sought after forex trading platform and has set a certain level of standard among the traders.
A few years ago, Metaquotes released MetaTrader5 typically referred to as MT5 which is a successor of MT4 with additional timeframes, features, and advantages. However, MT5 is not literally an upgrade of MT4, because the latter was mainly developed for forex trading, whereas, MT5 was designed to provide access to CFDs, stocks, and futures in addition to forex.
Despite this, there’s always a question about which one of these platforms is better than the other. Let’s do a quick rundown of the differences between each of these platforms.
MT4 vs MT5 Difference #1: Programming Language
MT5 uses a different programming language when compared to MT4 i.e. MetaTrader5 uses MQL5, whereas MetaTrader4 uses MQL4.
Initially, the MQL5 language was the only framework that made it convenient for individuals to use trading robots and other expert advisors. However, MetaQuotes made this feature accessible to MT4 users a few years ago.
Therefore, this is no longer a difference. Having said that, there’s a very good chance that any future upgrades may not be extended to MT4 or even MT5.
MT4 vs MT5 Difference #2: Exposure to Financial Markets
Originally, MT4 was designed to carry out transactions across the Forex market alone, however, with many brokers adopting various other instruments, MT4 inevitably expanded and has other added instruments.
MT5, on the other hand, was developed with the intention to support all the major markets including stocks, futures and FX trading instruments. Additionally, MT5 supports unlimited symbols, while MT4 has a maximum cap of 1024 symbols.
MT4 vs MT5 Difference #3: Trading & Orders
One of the common, day to day problem most traders face with MT5 is that their orders are aggregated while they’re dealing with multiple orders of the same asset.
On the other hand, users are far more comfortable using MT4, as each order is shown separately even when they’re working with multiple orders of the same asset.
Pending orders simply refer to the ability to buy or sell an asset at a predefined price in the future.
As far as MT4 is concerned, it has four order types available, namely: buy stop, buy limit, sell limit and sell stop, whereas MT5 offers six order types: buy stop limit, sell stop limit, in addition to the four offered in MT4.
MT4 vs MT5 Difference #4: Analysis & Charting Capabilities
Both MetaTrader4 and MetaTrader 5 are known for their amazing charting capabilities making them the most desirable forex trading platforms.
MT4 comes with a default library of 30 technical indicators and 31 graphical objects, 2000 + free custom indicators, additional paid indicators and 9 timeframes to choose from varying from as short as 1-minute charts to as long as one-month charts.
MT5, on the other hand, offers 38 built-in technical indicators, 44 graphical objects, that can be easily applied to 21 different timeframes. In addition to the ordinary timeframes, MT5 offers two, eight and 12-hour charts that may be useful for many day traders.
Both platforms offer the most popular tools such as Relative Strength Index, Stochastics and Bollinger Bands, as well as the Fibonacci and Elliot wave drawing tools.
Conclusion: Which is a better Trading Platform?
This is entirely trader dependent. While MT5 definitely has some additional features when compared to MT4, it may appear to be complicated to amateur or new traders.
Therefore, those that are relatively new to trading may find MT4 straightforward and easy to use. In such scenarios, MT4 becomes an obvious choice.
However, if your customers are avid and advanced traders who may find the additional tools offered in MT5 useful, then MetaTrader5 is worth considering.
Nevertheless, it is important to note that the most widely used platform across the globe is MetaTrader4 / MT4.
Sanfrix offers Whitelabel options for both MT4 and MT5 that can be customized to your brand name, logo and more. We also develop custom plugins that work seamlessly with your trading platform in addition to offering mobile and web trading platforms.
As part of our white-label package, we offer several services and tools that are necessary to get your brokerage started such as Brokerage Licensing, Company Incorporation, Brand & Website Development, Forex CRM & back-office, Client Cabinet, Liquidity and more.
Get a free demo today to understand all the options available to you. Also, don’t forget to ask about our other tools that have the capability to produce 10x profits to your brokerage such as the Risk Manager and Copy Trader.
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