If you have been trading Forex, you surely have heard about MetaTrader 4 and MetaTrader 5 from your forex broker. These two trading platforms became so popular thanks to their exceptional technical indicators and trading tools. It may seem like MT5 is the updated version of the older trading platforms but in reality, these two trading platforms have their own target markets and specific functions that help suit the needs of every type of trader. In the end, it is the trader’s choice if he will use MT4 or MT5.
Before that, let us take a closer look at these two trading platforms.
The Type of Assets That You Can Trade
If you are wondering about the biggest difference between MT4 and MT5, it all boils down to the type of traders that use the trading platform. For MetaTrader 4, its features and functionality are very much suited for Forex trading. So, if you are a Forex trader and you only want to focus on Forex trading, it is best if you choose MT4.
As for MT5, this trading platform is multi-asset and offers more indicators and trading tools. It is ideal for traders pursuing Contract For Difference (CFD), futures trading, and stocks trading. This is because MT5 has more features compared to MT4. Although you can also use MT5 in trading Forex, it is important to take note that the tools used to analyze the Forex charts are not as robust as the ones found in MT4.
Do You Need Access to the FIX API?
What does FIX API mean? It stands for Financial Information eXchange API. This is a very important tool that is used to seek some real-time information that is co-related to financial securities. This FIX API is being utilized not just by traders but by market regulators too. It is capable of sharing important information before the trade and after the trade. It also contains information about the trades that were executed and the new orders.
Chart Time Frames Availability
Because MetaTrader 4 is specifically made for simplicity, this trading platform is ideal for beginners who are not very familiar with trading and don’t need any complexities. MT4 is a much simpler option but its resources are very thorough and less complicated. There are nine timeframes in MT4 which is just ideal if you are a Forex trader.
As for MT5, the trading platform has been 21 times larger, which is a great expansion from the previous trading platform. However, there are a lot of traders who think that too many time frames are unnecessary. But there are still traders, specifically, CFD traders, who find these customizable quite useful especially those less common time frames. This is one of the reasons why forex brokers choose to offer both platforms in their sites.
The Number of Order Types
MT4 has four basic order types which are just perfect for Forex traders. These are the buy limit, buy stop, sell limit, and sell stop. These are the only order types that Forex traders need to execute their trading strategy – no more, no less.
But MetaTrader 5 is different. It has two additional order types which are the buy stop limit and the sell stop limit. This provides greater flexibility among traders.
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