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MetaTrader 4 or 5 – Difference and Comparison5 min read

Trading platforms from MetaQuotes Software Corp. have long been in demand among traders. Now their most popular version is MetaTrader 4, which came out in 2005, but recently an updated and improved MetaTrader 5 has been released. This platform was launched in 2010 and has been improved over time with some additional features, and also added new exchange instruments. MT4 focuses on Forex and CFD trading, while MT5 also includes other assets such as stocks and futures. MT5 has improved its multi-currency strategy tester and is faster in testing and optimization compared to MT4. Also, the developers have created a web base of the platform, which has an additional plus, which means that you can trade directly from the browser and not install the program on your computer.

Interface

Usually old traders choose version 4 of the program because it is simple and no frills. In addition, this version is also suitable for novice traders, since there are fewer functions here than in version 5. On the other hand, MetaTrader 5 is the successor to MetaTrader 4 and is a bit tricky for novice traders. It comes with additional features and has various advantages over MT4. By visual similarity, both versions are almost identical and only small elements are noticeable. Also, the new version has added «Depth of Market», which allows you to monitor the trading volumes and the number of open orders to buy and sell stocks or currencies at different prices.

TimeFrames

MetaTrader 4 has only 9 timeframes from one minute to one month, which is sometimes not very convenient. The new version already has 21 intervals, ranging from 1 minute to the annual chart, and this provides additional opportunities for market analysis, for example 10 minutes, 20 minutes, 3 minutes 2 minutes, 2 hours and others. This allows both long-term and short-term traders to trade at different intervals. Of course, in MetaTrader 4 you can use additional scripts to display these timeframes, but it is extremely inconvenient, in version 5 they are already included in the list.

Programming code

MetaTrader 4 works on MQL4 code, and the new version is on MQL5. MetaTrader 5 has implemented an advanced test system for testing EAs and robots on historical data. There is one big drawback.. all written scripts, indicators, advisors for MT4 will not work on the new version, because there are different algorithms for work. MQL5 language is more complicated, but for professional coders it provides more possibilities, complex commands and calculations.

Copying trade

The new version 5 adds the function of copying trades of the best traders. You can look at profitability, gains and other signal statistics, and then decide whether to trade or not. The buttons for signal subscription are also located there. The subscription can be either paid or free. It is recommended to look at those signals where the indicator is above average, you will have a better chance of making a profit. Signal statistics can be viewed in the tab «My statistics», where you can also evaluate the quality of signals and manage subscriptions. If the signals are paid, then you can pay for them through such systems as PayPal, WebMoney, Neteller, ePayments, UnionPay and bank cards Visa, MasterCard. Professional traders who trade successfully can become signal providers themselves. You can attract thousands of subscribers to yourself and receive additional income for this.

Possibilities of orders

MetaTrader 4 provides you with 4 types of pending orders namely: buy limit, sell limit, buy stop, and sell stop. In the new version of the program, 6 types of pending orders are available: buy limit, sell limit, buy stop, sell stop, buy stop limit, and sell stop limit. Also, MT5 added the ability to manage stop loss and take profit using a mouse gesture. And after a while, the developers also finished off this feature in MT4, which is very convenient. To open an order in MT5, you can use the one-click trading function directly on the chart.

Internal funds transfers

MetaTrader 5 has added a new function that is able to transfer funds from one account to another directly from the platform. This function may not be necessary, but for some it may come in handy, for example, if you have several accounts: Classic and Pro. Transfers can only be made in the currency of those accounts.

Economic calendar

For fundamental analysis of the markets, MetaTrader 5 has added an economic calendar, where all information is collected from public sources in real time. Now the calendar contains economic news for the USA, Japan and the European Union. Traders from any broker with the new MT5 version can receive up-to-date information and quickly react to market events. Information about news releases will help traders analyze the market situation and make a forecast for assets. Here you can filter events by importance, select a country and a time of interest to you. You can also set up alerts and you will receive notifications on your PC or Mobile.

MetaTrader Market

On the tab «Market», you can buy any trading robots, technical indicators and scripts specifically for MT5. Thousands of trading instruments have been added here and you can buy them at any time and start trading immediately. You can carefully filter them by popularity or price as you like, and then see screenshots and descriptions. Trading robots and indicators can be tested for free in the strategy tester before buying. If you’ve created your product, you can put it up for sale. Products are securely encrypted and linked to customer’s computers. If you are not yet ready to purchase the product, then most of the tools have a rental option. And if you are a beginner trader in the financial markets, you can start with free tools that are also available in the «Market».