MT4 vs MT5
In more recent years, trading platforms have started to offer trading on cryptocurrencies. Bitcoin, Ethereum, and Ripple are some of the most popular trading instruments in the world of evolving cryptos. MetaTrader 4 (MT4) by MetaQuotes Software Corp has been very popular for over ten years, and you can even download it for free. Still, you need to know what the MT4 platform is and what you can use it for.
Trading platforms are a trader's workspace. That is where you will be spending most of your trading days. It is vital to connect a trader with a broker's server to provide access to different types of CFDs and financial markets. By doing that, they provide different trading instruments. You are able to trade Forex, as well as CFDs on cryptocurrencies, indexes, shares, bonds, and commodities. The main features of MT4 include mobility, security, mobility, and multifunctionality.
MT4 is a mobile platform. By saying that, we refer to trading not only on the computer, but also on smartphones and tablets. MT4 is available for three different formats: desktop, mobile, and browser. Both mobile ( iOS, Android) and the MetaTrader Webtrader web platform are fully compatible with the desktop terminal. If you open an order on your computer, you can easily manage it from your tablet via the mobile version for Android/iOS devices. All data will be displayed correctly. The main point with the browser and the mobile platform is that you are time and place independent. You are always able to check the account or opt to close an order at any time, and from any device that is connected to the Internet.
MetaQuotes Software Corp has implemented many different functions for trading Forex & CFD instruments. MT4 offers different trading and analytical technologies, and also additional services for professional traders. It has a lot to offer for Forex & CFD trading. One of the key strengths of MT4 is algorithmic trading. Algorithmic trading refers to trading with the help of automated trading systems. Expert Advisors (EA) trade at a predetermined algorithm. The MQL4 IDE is built into the platform, which enables you to create a personal advisor or robot of any complexity. Most new traders are not familiar with MQL4, but can still use the built-in app store 'MetaTrader Market' and the free library 'Code Base'. There, you will find everything you might need for efficient trading – a variety of different technical indicators, scripts, and EAs.
In MT4, the exchange of information between you, the terminal, and the platform servers is encrypted with 128-bit keys. The platform also supports an enhanced security system based on RSA – an asymmetric encryption algorithm.
As you probably know, the industry is slowly but steadily shifting towards MetaTrader 5 (MT5). MT5 is arguably the future of retail trading. Let's find out what's so special about this revamped platform! • Hedging allowed • No FIFO rule • Fundamental calendar integrated • Commerce Integration • Improved charting and time frames • Exclusive first-class indicators • Multiple market order ability • MT5 Supreme Edition plugin integration
The Benefits of MT5
One of the major benefits of the MT5 platform is that traders are not restricted to using the built-in analytical resources, such as MT5 tables, indicators, and graphs. Owing to MQL5, an object-oriented and a high-performance programming language, traders are able to create their own technical indicators. The coding should be much simpler than MQ4, so that traders can even create trading robots, or Expert Advisors (EA). Trading robots (EAs) are able to automatically implement different trading strategies based on a number of different inputs. That way, traders will have the ability to access very accurate market analysis and forecasts. Starting with the Beta Build 1281, MT5 allowed hedging that was only possible with MT4. Unlike the standard netting system, hedging enables traders to conduct multiple trades, even in the opposite direction of the same symbol. Now, traders can use the netting model to trade exchange instruments and hedging for currency trading, using the MetaTrader 5 institutional platform. MetaTrader 5 also offers enhanced order management capabilities (e.g. filling orders using multiple deals, including partial fills). If a trader has an open position at a symbol and performs a new deal, a new position is opened. That is the core idea behind the MetaTrader 5 hedging system. The trader can set Stop-Loss and Take-Profit levels, as well as see the profit level for each position.
Keep in mind that MetaTrader 5 is a multimarket platform, which means that you can trade both in centralised and non-centralised markets.
Real Volume Data
MT5 enables traders to gain access to real volume-traded data, and not only tick volume data. The tick volume refers to the number of price changes that have occurred in the course of the bar. With MT4, you simply do not know the real volume (contracts, or lots) that have been traded.
Tick History Download
In MT5, you can download and consult tick history from your broker. In MT4, you can only save tick data manually, which brings about many limitations. You must have your platform turned on 24 hours a day, and still, you'll never keep all the ticks. In MT4, you can never know what the most traded price or cluster in the selected range was. You have to make an estimation using only M1 bars, which is a major drawback compared to the real tick history of the broker, especially if you perform backtesting. Why is this important? Because there are many traders who use tools like 'Market Profile', 'Delta Volume', and other tools (i.e., real POC/ VWAP/ Profile levels).
Reference: Admiral Market