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Traders
MetaTrader is considered at the top of the list of leading trading platforms worldwide. Every day millions of traders use this platform to benefit from market fluctuations. Many alternatives to MetaTrader are available, but MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are mostly in use. However, not many know the difference between these two and are confused about which one is the best. To help you choose the best option based on trading preferences, this article will provide a detailed comparison of MetaTrader 4 and MetaTrader 5 for brokers.
MetaTrader is an online trading platform that acts as a window to the trading market, allowing users to trade in different assets. It carries out various intricate operations to filter out charting and technical analysis data. Further, this information is provided to users, letting them monitor and trade in the market. This platform is extremely advanced and relies on the most innovative technologies and leading trading tools to work on even complex trading strategies and even provides an automated trading feature.
MetaTrader 4 (MT4) is an algorithmic Forex trading platform launched by MetaQuotes Software Corporation in 2005. It was the most innovative trading infrastructure then; nevertheless, it held its position as the leading trading platform through continuous upgrades and enhancements. The platform evolved significantly, by accruing features like custom indicators, expert advisors (EAs), and templates. Moreover, MetaTrader 4 for traders now even facilitates trading index instruments and commodities via a Contract For Difference (CFD).
In order to extend trading beyond Forex to stocks, commodities, etc., MetaTrader 5 (MT5) was released in 2010, after its predecessor. While MT5 supports both hedging and netting systems, it is particularly beneficial in countries like the United States, where regulatory rules such as the FIFO (First In, First Out) policy and hedging restrictions apply. MT5 is designed to comply with U.S. trading regulations, making it more suitable than MT4 for traders in the U.S. MT5 also offers several features not available in MT4, including “Buy Stop Limit” and “Sell Stop Limit.
Both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) allow brokers to serve traders residing in any part of the world with trading automation. However, if you want to understand which would be better, MetaTrader 4 or MetaTrader 5 for brokers, here is the comparison for you.
Although MetaTrader 5 has more advanced options and a more feature-rich interface, both versions have almost similar designs. MT4 works best when the brokers aim to offer simplicity to its users. Whereas MT5 would be most suitable if the brokers want to give a more customized trading experience for its users.
Due to its better asset coverage, brokers can provide a wide range of trading services on MT5 over MT4. It supports equities, commodities, and more, whereas MT4 is limited to Forex and CFDs.
Just like MetaTrader 4 for traders, MetaTrader 5 has different technical indicators and charting tools. However, MT5 provides access to more timeframes and forex chart types, offering extra functionalities and allowing better technical analysis for its users.
When it comes to order execution, both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) execute orders with high speed and precision. However, MT5 has more order types, offering versatility to use different order methods.
The economic calendar was later added in MetaTrader 5, which was not available in MT4. It provides brokers and traders with real-time information on important market events and news releases. Thus, traders can enhance fundamental analysis based on technical and fundamental factors and promote informed decisions.
Both MT4 and MT5 employ robust security measures like encryption protocols, secure login procedures, etc., to protect trading accounts from unauthorized access. But, MT5 has more security features, like two-factor authentication, and it even has a secure architecture that is immune to cyberattacks and threats.
MT4 uses the basic MQL4 programming language, while MT5 leverages a more advanced programming language (MQL5). Thus, MT5 supports “black box” programming that has improved algorithmic trading capabilities and is used for developing trading robots.
When it comes to compatibility, both platforms are compatible with Google Chrome, Microsoft Edge, and other major browsing platforms. Moreover, they both have mobile applications that are functional on iOS and Android devices.
Let’s check the pros and cons of both to understand this in-depth:
Many think MT5 is better than MT4, as it entered the market after its forerunner. However, that isn’t true! MT5 is not a direct progressive version of MT4 but an alternative! It is because MT5 was designed with more features to make it compatible with trading beyond Forex.
In conclusion, MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both robust trading platforms. While MT4 primarily focuses on forex trading and offers basic trading functionalities, MT5 provides additional features and capabilities. Though, the better version could be either of the two, depending on the specific needs.
Would you like to know more? Get in touch with Shark Technologies right now to utilize our trading software, which is loaded with the powerful features of MetaTrader 5 (MT5).