If you trade forex, you’re undoubtedly familiar with the MetaTrader 4 and MetaTrader 5 platforms at the very least. For a wide spectrum of traders and advisers, these software solutions rank among the most popular trading platforms, thanks in large part to the value of their tools and resources when it comes to evaluating positions and taking action.

Despite the fact that their names suggest that MT5 is simply an updated version of MT4, the truth is that these two platforms have separate purposes and features that cater to different trading consumers. Whether you choose MT4 or MT5 depends on a variety of criteria, including your history and trading objectives.

What Assets Are You Comfortable With?

The most significant distinction between MT4 and MT5 is the types of traders that each platform attracts. MT4 was created with forex traders in mind, and its features and capabilities reflect that. As a result, for traders primarily focused on the currency market, MT4 is the recommended software platform.

Contract-for-difference (CFD), stock, and futures trading are all possible with MT5. As a result, it has a broader set of features that may or may not be useful to every trader—but if you trade a variety of assets, it may deliver better value for your money. Keep in mind that, while you can still trade forex using MT5, the features and tools for analyzing forex charts aren’t as extensive, so you’ll likely lose performance if you use MT5 for this type of trading.

Do You Need FIX API Access?

For traders looking for real-time information on financial assets, the Financial Information eXchange (FIX) API is a useful tool. Market regulators and traders utilize the FIX API to share critical information before and after deals, as well as information that confirms new orders and completed trades.

Traders can benefit from a FIX API integration in a variety of ways. Most significantly, when trading on a platform with FIX API connection, traders have more access to financial data, and the layout of this data is standardized, making communication across language boundaries easier. The FIX API also makes it simple to create secret algorithms or black-box techniques to aid in forex trading analysis.

You’ll need to use the MT4 trading platform if you wish to use the FIX API. MT5 does not support FIX API integration.

Time Frame Offerings on the Chart

MT4 was designed with simplicity in mind. Casual and inexperienced traders are unlikely to require access to intricate and granular time frame data, making MT4 the more straightforward solution, with only the resources you require and none of the complicated capabilities you do not.

When conducting chart analysis with MT4, traders can choose from nine distinct time frames. MT5, on the other hand, supports 21 different time frames, which is a significant increase over MT4. These adjustable features are optional for many traders. However, access to these less regularly utilized time periods benefits some traders, as well as certain types of trades, such as CFDs. This knowledge may be critical for more experienced or diversified traders to execute well-informed trades.

Order Types and Numbers

Buy stop, buy limit, sell stop, and sell limit are the four fundamental order types available in MT4. These order types are sufficient for most traders to execute their trading strategy while avoiding risk and expressing greater control over how they enter and exit their positions.

These, as well as two more, are available in MT5: buy stop-limit and sell stop-limit orders. This gives traders more options for how price movement can be used to trigger buys and sells. These order types may be used often by experienced traders, although they are likely to be used less frequently by beginners and casual traders.

Language of Programming

MT4 and MT5 each have their own own programming language, which offers varied trading features and modifications based on your trading requirements. On the other hand, on MT4, it’s more likely that traders will be looking for a platform that can be swiftly installed and launched, with only a few steps required to set up functionality or establish a trading program.

This makes MT4 an excellent choice for new or inexperienced traders, as well as those who don’t want to write their own scripts or algorithms to support their trading strategy. MT5, on the other hand, has a more difficult programming language, but it also allows you to write and modify scripts.

Unlike the user experience offered by MT4, trades can also be conducted with a single function on MT5.

Features That Aren’t Frequently Used

Pay attention to tiny criteria that may effect your trading experience when you assess the better fit between MT4 and MT5. Both platforms, for example, provide hedging in certain deals, but only MT5 provides netting, which some traders rely on substantially to manage their relative risk exposure.

MT5 also has a few more technical indicators than MT4, as well as tools like an economic calendar to assist you keep track of important news from different foreign markets. However, with these new features comes a more complicated platform and a steeper learning curve.

MT5 also has features that MT4 doesn’t, such as a multithreaded strategy tester, fund transfers between accounts, and an embedded community chat. These features won’t be important to every trader, but you should assess your needs to see if this functionality is useful.

In Conclusion

In the end, the choice between MT4 and MT5 is a matter of personal preference. Examine your trading patterns and preferences to see which solution is the greatest fit for your requirements.

Many new traders favor MT4 because of its simplicity and limited capabilities, but MT5 attracts more experienced traders looking for additional resources and platform versatility.

Keep in mind that you might profit the most from MT4 at first, only to find later that you’re ready to go on to MT5. Regardless of where you are in your trading career, make sure your platform of choice will help you achieve your trading objectives.