MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most well-known trading platforms used by retail forex and CFD traders. They allow you to access financial markets, analyze prices, and execute trades, but they differ in several key aspects. Choosing the right platform can significantly impact your trading experience. This article will explore these differences, and more importantly, help you figure out which brokers offer each platform, as sometimes, a broker will limit what platform you can use.
Key Differences Between MetaTrader 4 and MetaTrader 5
While both software programs are MetaQuotes products, they are built with different architectures and cater to slightly different needs. Here’s a breakdown of the main distinctions:
- Supported Markets: MT4 is primarily designed for forex trading, although it also supports some CFDs (Contracts for Difference). On the other hand, MT5 is more versatile and supports a broader range of markets, including forex, stocks, futures, and options.
- Order Types: MT4 has basic order types – market, limit, stop, and stop loss. MT5 expands on this with additional options, such as buy stop limit, sell stop limit, and various pending orders. These extra order types give traders more flexibility.
- Timeframes: MT4 features nine timeframes. MT5 offers 21 timeframes, providing more detailed analysis at different time scales.
- Indicators and Graphical Objects: MT4 includes many built-in technical indicators and graphical tools. MT5 builds upon this further, offering even more analysis tools.
- Programming Language: MT4 uses MQL4, while MT5 uses MQL5. MQL5 is more robust, making it easier to create complex automated trading strategies (Expert Advisors or EAs). Although, many custom EAs have been created for MT4 over the years.
- Hedging vs. Netting: MT4 uses a hedging system, meaning you can have multiple positions open in the same instrument, some going long and others short. MT5 also gives netting accounts, which are more common if you are trading instruments like stocks.
- Speed: MT5 has been optimized for faster order execution, which can be crucial for traders who need to quickly enter and exit trades.
- 64 vs 32 bits: MT5 is a multi-threading 64-bit platform, making it faster, while MT4 is a 32-bit platform.
Which Brokers Offer MetaTrader 4?
MetaTrader 4 has been around longer, and many brokers still offer it because of its popularity and that a large trading community have EAs built for this platform specifically. Many brokers see it still as a preferred platform for forex traders. Here is a generalized list of brokers that offer MT4:
- Many established forex and CFD brokers: These brokers recognize the preferences of many traders, particularly those looking for a simpler platform primarily focused on forex.
- Brokers focusing on forex trading: If the broker primarily deals with forex, chances are they have the MT4 platform available.
- Brokers allowing automated trading: MT4’s EA capability makes it a popular choice for those who prefer to automate their trading strategies.
It’s important to note that even if a broker *offers* MT4, sometimes they might prefer or push traders towards another platform, especially MT5. Also, availability of MT4 may vary by region, so you should always double-check the broker’s website.
Which Brokers Offer MetaTrader 5?
MetaTrader 5, the newer generation, is gaining popularity for its versatility. It often gets pushed by brokers because it has more regulatory flexibility and is designed for the wider range of markets. Here’s an overview of brokers that are most likely to feature it:
- Brokers offering diverse asset classes: Since MT5 supports more than just forex, these brokers prefer using it.
- Brokers seeking the latest tech: These brokers want their clients to use a modern and fast platform.
- Brokers focused on institutional or advanced traders: Institutions and active traders often value the increased functionality of MT5.
However, just because a broker offers MT5 doesn’t mean they offer *all* of its features. Make sure to check if the broker has implemented all the features that you were interested in. Sometimes brokers may limit the functionality available to certain users.
How to Check Which Platform is Offered?
Determining which platform a broker offers is usually straightforward. Here is how you can figure out the availability of MT4 and MT5 among different brokers:
- Check the Broker’s Website: Look for a ‘Platforms’ or ‘Trading Platforms’ section. Usually here they display all trading platforms that are offered.
- Read the Account Types: Different account types might be linked to different platforms. If a broker allows both, the types of accounts may be linked to a particular platform.
- Contact Broker Support: If you’re unsure, contacting the broker’s customer support is the simplest way to get a conclusive answer. It will also provide specific information regarding any platform or account restrictions.
Choosing Between MT4 and MT5
Deciding which platform is right for you can be confusing, but it is often simple once you ask yourself a few questions:
- What do you intend to trade most? Forex traders often like MT4, although you can trade forex on MT5 too. If you trade complex assets like shares, you may want to check that the MT5 is a platform offered.
- Are you interested in sophisticated order entry? If you have more advanced strategies or order type requirements, MT5 might be more beneficial.
- Do you have prior trading experience? MT4, because of its long history and strong community, may be the easiest to jump into for new traders. However, MT5 is not far behind, and is generally viewed as easy to learn and use.
- Do you plan to use EAs or automated strategies? MT5 is faster and more optimized for this. However, many EAs have been built previously for MT4.
It is also important to check the exact capabilities of the platforms the broker provides. Sometimes there are limitations with certain brokers, so always research their specific platform version.
Conclusion
MetaTrader 4 and MetaTrader 5 are both powerful trading platforms, each with its strengths and weaknesses. Your choice should depend on your trading style, the assets you wish to trade, and your tech preferences. The availability of each platform may completely come down to the broker of your choosing. Always verify with the specific broker to know what exactly is available for you.
FAQ
References
MetaQuotes, MetaTrader Official Website.
Various online forums that discuss issues and aspects of using the 2 platforms.
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