If you have decided to foray into forex trading, you need access to a stable trading environment. A powerful, reliable, fast and feature-rich trading platform could make a huge difference to your long-term trading success.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both trusted names in this regard. They are multi-asset platforms, with user-friendly interfaces, multi-device operability and equipped with strong tools for fundamental and technical analysis. Moreover, they are ingrained with robust security protocols, making transactions and trading extremely safe.
But, there are some common misconceptions. For instance, MetaTrader 5 is not just a superior version of MetaTrader 4, it is loaded with improved functions. Obviously, there are a large number of similarities between the platforms, but many differences too. Let’s take a closer look at them.
MT4 is one of the most popular forex trading platforms. Traders can gain access to many currency pairs or forex CFDs from the same platform. The interface is simpler and easier to understand. MT4 offers a wide range of functionalities, suitable for FX traders of all skill levels. With various execution modes and order types, traders have the flexibility to create their own strategies. Brokers can offer real-time price quotes for price analysis, and multi timeframe interactive forex charts can be opened simultaneously.
In contrast, MT5 has been designed to offer access to a wider range of markets, including forex. Traders can access stocks and commodities too, since the platform can connect to a centralised exchange. Unlike forex, which is a decentralised market, stocks and commodities have to be traded on central trading exchanges. Commodities, especially, are mostly traded through futures. MT5 is, thus, a true exchange market platform, while MT4 is a specialised one.
Technical and Fundamental Analysis
MT5 offers all the technical indicators provided by MT4, and many more. MT4 has 30 in-built technical indicators, 31 analytical objects, along with 2,000 free custom indicators and 700 paid ones. In comparison, MT5 has 38 inbuilt indicators and 44 analytical objects. Chart analysis on MT5 can be done in 21 timeframes, compared to just 9 in MT4. Also, MT5 allows traders to open unlimited number of charts at the same time. Another feature absent on MT4 is the Depth of Market feature, where real-time tick charts of all financial instruments, along with trading volumes, can be seen.
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