subject: Mt4 And Mt5 - An Intensive Comparison To Help You Decide Which To Use [print this page] MetaTrader 5 is a new version of MetaTrader 4 developed to help Forex traders make more profits. Although they are developed to perform the same function, they have different features and also offer different benefits enjoyed by both Forex brokers and traders.
Introduction
MetaTrader (MT) is an independent Forex trading platform that is used by both Forex traders and brokers. MetaTrader platform is designed for use only in online Forex trading. To be specific, it is the most popularly used Forex trading platform globally. The MetaTrader platform was developed by MetaQuotes, Russian company in 2002. Its design offers several different options enhancing support and easy tweaking, which makes it popular with several experienced Forex traders. The MetaTrader is developed with its own programming language known as "What is MQL". MetaTrader platforms come in two popular forms, the MT4 and MT5. MT5 is the upgrade of the original MT4 version.
Charting Options And User Interface
Both the MT4 and MT5 use pretty much similar account interface and charting options. The primary difference is that MT4 looks more bulky compared to this new version. MT5 has more spaced out icons with larger buttons. This is greatly helpful as compared to the compact nature of the older version. The only disadvantage is that the spaced-out icons take much space in terms of pixels. This considerably wastes much of the useful chart space. The Fibonacci Retracement tool works well in MT4 as compared to this new version.
Hedging
Every Forex trader is concerned about the hedging feature. The MT5 does not work pretty well with the hedging feature as compared to MT4. For example, the MT5 won't let you hedge out especially if you want to trade on two system, say scalping system and swing system. Through hedging, you can take advantage of an opportunity for quick scalping and make some cash by going short with just few pips. However, that seems impossible with MT5. A suggestion is for Forex brokers to use plug-in to facilitate hedging on MT5 platform.
Computer Space And Other Resources
Unlike MT4, this new version takes lots of computer space. Unlike MT4, in most computers, the MT5 usually consumes more than triple space required by computer RAM. However, this may vary with different computers. Although it consumes more computer space, the MT5 platform is undoubtedly a resourceful Forex trading platform. Besides, MT5 is very efficient and designed to offer more features which are undoubtedly resourceful.
Indicators and EAs
The MT5 platform is best for offering folders in the navigator windows, something that lacks in its predecessor. Actually this is a neat feature developed to help traders easily organize expert advisors and indicators. In the default installation, the MT5 offer four folders for Trend, Oscillators, Volumes, and Bill Williams in the indicators section. The trader can easily open any of these folders, select and apply the appropriate indicator. Besides, it allows you to create and customize your own folders. Unfortunately, expert advisors and indicators in MT4 platform are not compatible with MT5 platform.
Backtesting
So far the development of MT5 platform does not support the Strategy Tester. Therefore a trader cannot backtest anything on MT5. Fortunately, there are hopes of implementing this feature that will allow trader to backtest as they trade. In case they include backtesting, it should be better than that of MT4. Backtesting is the weakest point of MT4.
Conclusion
Both the MT4 and MT5 are designed to perform the same function but are slightly different in terms of features and options offered. These outstanding differences offer different levels of advantages to both Forex traders and brokers. Although people had high expectation about the new version MT5, it is a hell of problem disappointing many. Most Forex traders consider MT5 platform a letdown and would rather prefer to continue with the older version. Specifically, MT5 platform hinder trader from taking advantages of several opportunities to gain potentially. The good news is that it is still under test and improvements are expected sooner.
