Trading software designed by MetaQuotes is still very popular among CFD traders, even though over the past several years, new innovative trading solutions have entered the market. Despite that, thousands of traders around the world are still unfamiliar with them. Let's take a look at the 2 most important MetaQuotes platforms, MetaTrader 4 and MetaTrader 5, and try to understand the difference between them.
In case you are still trying to figure out which platform is better for you, this article will try to help you make that crucial decision.
With a track record of over a decade (in the case of MetaTrader 4) and a few good years (for Metatrader 5), these platforms managed to grow a solid reputation. Traders continue to use them because they have been doing that for an extended period.
This endeavour is all about developing skills and habits, so once you become accustomed to a trading platform, and you achieve the results desired, it's really not easy to change your routine. However, if you see that your trading strategy is not working, maybe it is time to consider a different platform.
Right now, both MT4 and MT5 are covered by the majority of trusted brokerages in the market, so these two platforms remain top picks among traders. Even MT4 has grown into a multi-asset trading solution, and you can trade commodities, indices, and other leading assets on it.
Automated trading capabilities
The first major difference has to do with automated trading. Expert Advisors written in MQL4 and MQL5 are compatible only with software developed by MetaQuotes. Over the past few years, there has been this growing tendency to automate the trading process, out of the need to remove subjectivity. At the same time, traders can save a lot of time by not needing to do repetitive tasks.
Execution is rock-solid with MetaTrader platforms and since market volatility probably won't subside soon, it is possible to use EAs effectively. Brokerages also offer web-based trading solutions and in those cases, automation is not possible. Traders can join social trading programs, but that will imply relying on other people's ideas.
Other useful tools
With MetaTrader 5, traders have access to a virtual hosting service (VPS), a feature that allows you to rent a virtual server and ensure uninterrupted operation for your trading robots and signal subscriptions. This is an analogue service that can grant minimum network latency to your broker's trade service, in exchange for relatively low costs.
Another important tool is the Strategy Tester, which facilitates testing of automated robot performance in trade. You can get insights into the efficiency of an EA before using it with real funds.
By doing so, you can set the best input parameters and not have any capital at risk while testing the software. With the MT5 Strategy Tester, it is possible to test EAs on multiple currencies, and you can even spot a correlation between them. Testing can be completed in a few minutes, compared to monitoring an EA for weeks or months with older platforms.