Choosing the right Forex trading platform is one of the vital parts for succesfull trading. For long time MetaTrader 4 (MT4) remained the most common in the list of top used platforms, but since the appearance of MetaTrader 5 (MT5) in 2010, the debate as to whether to use one version or another has grown significantly.
MetaTrader 4 and MetaTrader 5, both of the world’s leading trading platforms, stand out with their own features. While new investors can find these two platforms similar to each other, experienced investors can find small differences that can be a major factor affecting their trading style and preferences.
Both platforms were created by the Russian development company MetaQuotes Software Corporation, which is a leader in the financial market. They are multi-asset and user-friendly platforms, with advanced fundamental and technical analysis tools built-in . Moreover, trading has become extremely safe and risk-free by these platforms, because of their ingrained security protocols.
In this article, we will review the differences between these two platforms, so you can come to a clear decision on which one should you use, depending on your preferences.
Get to know MT4 :
This program, which was developed and launched by MetaQuotes company in Southern Cyprus in 2005, is the most widely used and known program today. It supports investment methods such as “Hedging” “multi – Hedging” and “FIFO”. The drawing features, ie graphics, offer a fairly high quality for most traders. Additionally, MT4 stands out as the most used software by brokerage houses and offered to investors. Today, most brokerage companies are connected to MT4 and you can start trading after you select the brokerage you are working with on the platform and log in with the account information provided by your brokerage. Here are some of its best features:
- 9 timeframes
- 3 execution modes
- 4 types of pending orders
- Allows hedging
- 30 built-in indicators
- Accessible via phone and a computer
Now, meet the latest version MT5:
MetaTrader 5 is the successor of MetaTrader 4, which was released 5 years after MT4. MT5 was created to provide access for traders to stocks, CFDs and futures because MT4 was originally designed only for trading forex.
Since Metatrader 5 was built five years after the release of Metatrader 4, there is an improper assumption that Metatrader 5 is an updated/improved version of Metatrader 4. This is not really true at all, Metatrader 5 is built to do things that Metatrader 4 could not, such as trading CFDs, futures and stocks.
MetaTrader 5 offers 38 built-in indicators, 22 analytical tools and 46 graphical objects, and other extra features to boost the traders’ trading experience. Here are some of MT5’s most notable features:
- 21 timeframes
- 6 types of pending orders
- Hedging and netting available
- Economic calendar
- 4 order execution types
- Supports several transaction types
- Ability to transfer funds between accounts
Key Differences between MT4 and MT5
- Metatrader 5 uses a programming language called MQL5 versus MQL4 is used by Metatrader 4.
- Meta 5 offers 6 types of pending orders vs Meta4 offers 4 types of pending orders
- Economic Calendar is included in MT5 vs No economic calendar in MT4
- 38 technical indicators; 44 graphical objects; 21 timeframes provided by MT5 vs 30 technical indicators; 31 graphical objects and 9 timeframes provided by MT4.
- Technical support is included in MT5 vs No technical support included in MT4
- Depth of Market included in MT5 vs No Depth of Market in MT4
- Transfer between funds available in MT5 vs No transfer between funds available in MT4
- Stocks, CFDs, Futures, Options, Bonds trading accessible in MT5 vs Only trading forex available in MT4
- Hedging is accessible in MT5 vs Hedging is not accessible in MT4
How to see Total Lot Sizes on MetaTrader 5 Trading Platform?
Some of the features of MT4 is missing on the new version MT5. For instance, on MT4 you can see separately your total short and long lot sizes (10lot long – 3 lot short = 7 lot net long lots). Luckily, there is a plug-in for this feature to be added to MT5 from Meta Market for free.
In order to see the total lot sizes of your positions on MetaTrader 5, please open your MT5 platform on your computer and follow the steps listed below:
- Go to Market – write down ‘’exposure’’ into the search engine which is located on top of the right hand side of the Market tab. Download the plug-in called Exposure.
- Next, go to View > Navigator > Expert Advisors > Market > Exposure
- Last, tick the ‘’Allow Automated Trading’’ checkbox and hit OK.
The table shown below on the graph must appear once you follow the instructions listed above.
Which Trading Platform to Choose?
The answer to this question is solely depends on the trader’s trading personality and preferences. If the trader needs a platform just for trading forex, MT4 might be a good choice. On the contrary, if the trader wants more advanced platform, for trading assets other than forex, and relies on back-testing strategies, MT5 might be the right choice. Both platforms are the best of the industry and have set standards in the trading world.Either way, it is advisable to start practising on a demo account, offered by many brokers, such as FTD Limited, where you will get an account with 100.000$ ready balance to try out MT5 platform before entering the live market. This way the trader can check which platform suits their needs and trading personality better.
Comparing MT4 and MT5 is complex, since both platforms are user-friendly and considered to be the best in the trading industry, just with little differences between them that might affect experienced trader’s trading style. It is believed that MT4 is more simplistic, and can be a better option fot beginners. However, MT5 with its more advanced and extra features can be a better option for professional traders, who also prefer to trade CFDs and futures.In the end the end choice comes down to personal preference and needs. If you are unsure, consider testing MT5 on a demo account offered by FTD Limited for instant access to $100.000 to test your strategies, by clicking the link below.
Wishing our readers a good and profitable week!