Metatrader is a popular trading platform used by traders all over the world to analyze markets and place trades. Over the years, the platform has undergone several upgrades to meet the ever-changing needs of traders. The most significant upgrade came in the form of metatrader 5, which was released in 2010, over five years after the release of Metatrader 4. In this article, we will compare the key differences between Metatrader 4 and Metatrader 5 and see how the platform has evolved over time.
User Interface
One of the most noticeable differences between Metatrader 4 and metatrader 5 is the user interface. Metatrader 5 has a more modern and cleaner interface compared to Metatrader 4. The charts and indicators are more organized, and it is easier to navigate through the platform. Metatrader 5 also has a multi-window mode, which allows traders to work with several charts simultaneously. This feature was not available in Metatrader 4.
Timeframes
Metatrader 5 offers more timeframes than Metatrader 4. Traders can choose from 21 timeframes in metatrader 5, whereas Metatrader 4 offers only 9. This gives traders more flexibility in analyzing the markets and finding trading opportunities.
Types of Orders
Metatrader 5 has several types of orders that are not available in Metatrader 4. These include Buy Stop Limit, Sell Stop Limit, and Stop Limit. These orders allow traders to enter and exit the market at specific prices and are useful for managing risk.
Hedging
Hedging is a strategy used by traders to minimize their losses by opening opposite positions in the same currency pair. Metatrader 5 allows traders to hedge their positions, whereas Metatrader 4 does not. This feature is especially useful for traders who trade in volatile markets and need to manage their risk.
Backtesting
By utilizing backtesting, one can evaluate a trading strategy on past data to ascertain how successful it would have been had it already been employed. Metatrader 5 has a more advanced backtesting tool than Metatrader 4. The tool allows traders to test their strategies on multiple currencies and timeframes simultaneously, which can save time and increase the accuracy of the testing.
Programming Languages
Metatrader 5 supports a more advanced programming language than Metatrader 4. The platform supports MQL5, which is a more powerful language than MQL4, which is supported by Metatrader 4. MQL5 allows traders to create more complex algorithms and trading robots, which can help them automate their trading and save time.
Market Depth
Metatrader 5 has a Market Depth feature, which shows the number of buy and sell orders at different price levels. This feature is useful for traders who use order flow analysis in their trading strategy. Metatrader 4 does not have this feature.
Strategy Tester Optimization
The strategy tester optimization tool in Metatrader 5 is more advanced than in Metatrader 4. Traders can use genetic algorithms to optimize their trading strategies, which can lead to better performance in real-time trading. The optimization process in metatrader 5 is also faster than in Metatrader 4.
Economic Calendar
Metatrader 5 has an integrated economic calendar, which shows important news releases and events that can affect the markets. This feature is not available in Metatrader 4, and traders need to rely on external sources for this information.
Cloud-based Trading
Metatrader 5 allows traders to access their trading accounts from any device with an internet connection. This feature is not available in Metatrader 4, which is limited to desktop and mobile applications. Cloud-based trading in Metatrader 5 makes it easier for traders to manage their trades and access their accounts on the go.
In conclusion,
Metatrader 5 offers several advantages over Metatrader 4, including a modern user interface, more timeframes, advanced order types, hedging, advanced backtesting tools, a more powerful programming language, market depth, advanced optimization, an integrated economic calendar, and cloud-based trading. While Metatrader 4 is still widely used by traders, Metatrader 5 is the preferred choice for many traders who require advanced trading tools and features. Ultimately, the choice between Metatrader 4 and Metatrader 5 depends on the individual trader’s needs and preferences.
