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MetaTrader 4 vs. MetaTrader 5: Choosing Between Two Powerful Trading Platforms

If you are somehow familiar with trading, you surely came across these two powerful trading platforms – the MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These two trading platforms are known as two of the most popular trading platforms being particularly the favorite of almost all traders. Why? Because these trading platforms are not wielding its sword against each other. They have a particular target market. For MT4, it is known to be the best trading platform for Forex trading while MetaTrader 5 tackles a wider market including stocks, indices, and commodities.

You may have noticed that their names suggest that the latter version is the updated version, the reality is, they have unique functions and target markets. They have their own features that are best suited to different markets. If you want a clear comparison of these two trading platforms, try and check some valuable information below.

The Types of Assets That You Want To Trade

If you were to ask about the biggest difference between MetaTrader 5 and MetaTrader 4, it will certainly go down to the type of traders that it attracts. MT4 is designed to attract Forex traders because its features and overall functionality greatly reflect it. So, if you are a Forex trader, it is best to choose MT4 most importantly if you are a newbie in the Forex market. You will find it easy to use and understand this MetaTrader 4 trading platform.

MetaTrader 5, on the other hand, is broader and offers access to different markets like futures trading, stocks, and Contract for Difference. Since it caters to a wider market, this trading platform is more relevant to a wider group of traders too. But, you must remember that MetaTrader 5 can be used in trading Forex but its trading tools as charts are not as robust as the ones found in MT4.

Access to FIX API

Financial Information eXchange (FIX) API is a significant tool for traders who want to have real-time information about financial securities. This FIX API is commonly used by market regulators but traders can use it too. This tool is very important in sharing valuable information that is made before or after every trade. It is also used to confirm the information of new orders and those orders which are already executed.

Chart Time Frames

Even new traders find it very simple to use MT4. It is practically built for simplicity. For beginners, they don’t need the complexities of MetaTrader 5 especially if they are only trading Forex. MT4 is a simpler option and yet, it provides the best trading tools and 9 different time frames.

Meanwhile, since MT5 covers a wider market, it also has more time frames to offer. It has 21-time frames which is already a massive expansion compared to MT4. Although some traders find this customization unnecessary, there are also traders who are like in CFDs that greatly benefit from these time frames. These traders are more experienced and very particular when it comes to executing trades.

 

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