When choosing between MetaTrader 4 and MetaTrader 5 from MetaQuotes Software Corporation, traders often wonder about the differences, improvements, and which platform is better suited for their trading needs. This article explores these questions and provides insights to help you decide.
Technical Differences: Small but Significant
The first thing traders associate with MetaTrader 5 is an updated version of the popular MetaTrader 4 platform, offering a more refined interface and enhanced functionality. But is it really that different?
MetaTrader 5 and MetaTrader 4 are very similar platforms. Brokers often use both or only MetaTrader 4. The interface of MetaTrader 5 is not significantly different from MetaTrader 4. As shown in Figure 1, the layout is quite similar to MetaTrader 4.
Small Differences. For example, the timeframes in MetaTrader 5 have been expanded: M2, M3, M4, M6, M10, M12, M20, H2, H3, H6, H8, H12. This is a convenient feature, although similar timeframes can be created in MetaTrader 4 using the period_converter script.
Another advantage of the MetaTrader 5 interface is the price depth and one-click trading feature. This tool is familiar to stock market traders as it displays bid and ask prices for a specific financial instrument at any given moment. The display of volume for each order is also a notable benefit. In MetaTrader 4, there are similar plugins such as One Click Trading & Market Depth, which again makes MetaTrader 5 less unique.
In addition, MetaTrader 5 includes an economic calendar. Expanding analytical services is always a positive feature, especially when they are centralized. However, traders tend to rely on a specific calendar, and news is often viewed directly in the terminal or on real-time news websites.
A new tool for wave traders is the Elliott Wave analysis. While many similar indicators exist, the advantage is questionable.
Changes in the Trading Process
Regarding aspects that directly affect trading, several key points stand out.
First, MetaTrader 5 does not allow locking positions (opening opposite orders). Traders who use techniques like hedging, averaging, or pyramid strategies may find this limitation challenging.
Second, the architecture of open orders has changed. In MetaTrader 4, each open order is visible, while in MetaTrader 5, orders for the same financial instrument are combined. This is similar to using synthetic indicators or iExposure.
Additionally, there is a small trend toward increased interactivity, particularly in order management. For instance, Stop Loss and Take Profit levels can now be adjusted by dragging them with the mouse, making it easier to modify trade parameters.
Due to the greater popularity of MetaTrader 4, there are more indicators, scripts, and expert advisors available for it.
For those interested in historical price data, MetaTrader 5 only provides historical data in the M1 timeframe. However, several changes and improvements have been made for strategy testing in MetaTrader 5. For example, you can now test an expert advisor on multiple financial instruments simultaneously, which can speed up the optimization process. Another unique feature is the ability to create expert advisors using the trading strategy generator.
Thus, there are no significant differences between these terminals for the average trader. The interface features, trading changes, and the increased interactivity of MetaTrader 5 have not yet become as established as the well-known and familiar MetaTrader 4. Happy trading!
FAQ
What are the main differences between MetaTrader 4 and MetaTrader 5?
MetaTrader 5 offers expanded timeframes, improved interactivity, and additional tools like the economic calendar, while MetaTrader 4 has a larger library of indicators and is more widely used.
Which platform is better for trading?
It depends on your preferences. MetaTrader 4 is more established and has more resources, while MetaTrader 5 offers modern features and improved functionality.
Can I use the same strategies in both platforms?
Some strategies may require adjustments due to differences in order management and available tools. It’s important to test your strategies in the chosen platform.
