Today there are very few Forex traders who have not heard of MetaTrader software. This software is one of the strong and progressive platforms for trading in the Forex market. The capability to install MetaTrader on any smartphone and various operating systems has provided a good opportunity for traders to always have access to their work tools and easily do their trades. The most popular versions of MetaTrader are versions 4 and 5 which have differences from one another. In this article, we aim to investigate the differences between MT4 versus MT5.
What is MetaTrader?
All agents around the globe use an environment as a trading platform for clients’ access to the market for trading. There are numerous companies that design and present these platforms. Each one of these platforms has its distinctive characteristics. Some only allow trading, while others provide the users with market analyzing options. One of the most reputable and useful trading software which many agents use to provide service to their clients is MetaTrader software.
In a general definition, MetaTrader is a trading software that gathers and connects trading platforms (marketing ends) altogether and hence provides the feasibility of trading with them via computer or mobile phone. MetaQuotes is a company that introduced this software to the world. This Russian company presented the two 4 and 5 MetaTrader versions in 2005 and 2010, respectively, for trading in financial markets.
MetaTrader software properties
Due to high trading qualifications and its free quiddity, MetaTrader is eminently used by users. Downloading and installation of this software and also changing settings is very easy and has a user-friendly environment. MetaTrader provides access to price diagrams and automatic trades. Moreover, you could review your previous trades in this software.
Another remark is the demo capability of this software which allows you to trade in the real market situation with no money deposit. In the demo situation, newcomers gain adequate experience without undergoing great losses for entering financial markets. Both MetaTrader 4 and 5 versions have unique properties and capabilities while designed a little bit differently from one another.
What is the difference between MetaTrader 4 and 5?
As we mentioned before, MetaTrader software has been provided to the market in two versions MetaTrader 4 and 5. Perhaps the most important reason for providing the MetaTrader 5 version was to update and provide new options in this version to improve the previous version. But we must say that there is an important difference between these two MetaTrader versions. MetaTrader 4 has a better ranking in terms of usage and popularity, albeit MetaTrader 5 provides the user with many more advantages.
MT 4 versus MT5 in infrastructure and programming
The primary difference between MetaTrader 4 and 5 is hidden in the infrastructure and optimization (coding). In fact, the difference between these two MetaTraders is solemnly in programming. MetaTrader 5 is more suitable for programmers and MQL experts. People who trade manually won’t feel much difference between MetaTrader 4 and 5.
MetaTrader 4 and 5 differences in algorithmic transactions
Another difference between MetaTrader 4 and 5 is in algorithmic transactions; meaning the accuracy of the results will differ in the backward test and forward test in these two versions.
Backward test
In MetaTrader, the backward test means the examination of trades’ strategic function to inform about the process of strategic function in the former market. The information backward test provides the user includes profitable trades, non-profitable trades, the percentage of winning trades versus loss, the amount of profit and loss in every situation, and the maximum loss during the trial. To understand whether or not our Forex strategy is profitable, firstly we must study the function of this strategy in the former market. Manual study of a strategy takes so much time and there is a possibility of error.
For the backward test on MetaTrader 4 and 5 platforms, there is a tool called “Strategy Tester” which could be used to analyze trading strategy code in the former market. This tool shows us the overall performance of the strategy in a specific period of time.
The difference in backward tests in MetaTrader 4 and 5 is that MetaTrader 5 has higher accuracy in storing data. Therefore, obtaining statistics of the backward test of a strategy will be more precise in MetaTrader 5, and it would also be faster in doing backward tests.
Forward Test
MetaTrader 5 provides the option of the forward test, an option that does not exist in MetaTrader 4. The forward test is designed for the examination of the function of a trading strategy. This test examines how is a function of a trading strategy in the market. The privilege of the forward test is that you could set the entry and exit points and become aware of the function of your strategy in real commerce.
Differences between MetaTrader 4 and 5 in properties and indicators
Some of the properties and indicators are only provided to the user in MetaTrader 4 and do not exist in MetaTrader 5. The exact opposite of this issue is also true, meaning some properties and indicators only exist in MetaTrader 5. For instance, in MetaTrader 4 there is the option of showing 9-time frames, but in MetaTrader 5 the user is provided with 21-time frames. Furthermore, there are 30 indicators in MetaTrader 4, whereas the number for MetaTrader 5 is 38 indicators. Some agents provide some of their services only on certain versions of MetaTrader.
MT4 versus MT5 in deposit expenses
Sometimes the deposit expenses (spread or commission) vary in MetaTrader 4 and MetaTrader 5 because trading accounts are different in MetaTrader 4 and 5. For example, most of the ECN accounts can only run in MetaTrader 5, which has less scattering among other accounts.
Difference between MetaTrader 4 and 5 in function speed
MetaTrader 5 is a multi-threaded and 64-bit system and MetaTrader 4 is a single-threaded and 32-bit system. Therefore, MetaTrader 5 has a higher function speed.
Which one is more suitable between MetaTrader 4 and 5?
Before answering this question, it should be noted that choosing an agent is far more crucial than choosing a trading platform. In fact, platform and MetaTrader advertisements are only done to attract customers. Hence, there is no obsession needed for choosing a platform, and it is noteworthy to say that practically all brokers provide MetaTrader 4 to their customers.
Generally, from a trading point of view, there is not a considerable difference between MT4 and MT5 versions. Although, if you must comply with US trade laws for some reason or usage of Back and Expert strategies is widespread in your trades, the MetaTrader 5 is considered a more suitable option for you.
This issue does not reduce the popularity of the MetaTrader 4, and the MT4 still has many users due to its easy usage and management. In other words, this platform could be considered the most popular trading platform in today’s world.
Final words
MetaTrader is a trading software that gathers and connects the trading platforms in one place and therefore it is possible to trade with them via computer or mobile phone. This software was presented in two versions of 4 and 5 MetaTrader in 2005 and 2010, respectively.
The most important and primary difference between MetaTrader 4 and 5 is their programming language. The programming language used in MetaTrader 5 is MQL5 and MQL programming language is used in MetaTrader 4 version.
Another difference between these two versions is the presence of a synced calendar in MetaTrader 5. This calendar has caused the MetaTrader 5 to show more indicators and the traders will have vaster options regarding this matter. Using MetaTrader 5 is a bit more difficult than MetaTrader 4 because of the usage of 68 analyzing tools, but the comparison of MT4 and MT5 shows that all agents with various skills can use these two versions.
Both MetaTrader 4 and 5 versions were designed by the Russian company MetaQuotes for users who want to enter the Forex market. Although MetaTrader 5 is the newer and in some ways the successor of the MetaTrader 4, MT4 is still more popular.
Frequently asked questions
What is MetaTrader?
MetaTrader is a trading software that gathers and connects trading platforms in one place and provides the possibility of trading with them. This software was presented to the market in two versions MetaTrader 4 and MetaTrader 5.
What is the difference between MT4 Versus MT5?
In general, from a trading point of view, there is no considerable difference between versions of MT4 and MT5. The most important and primary difference between MetaTrader 4 and 5 is their programming language. The programming language used in MetaTrader 5 is MQL5 and MQL programming language is used in MetaTrader 4 version.
Which one of the MetaTrader 4 and 5 are more suitable for traders?
If you must comply with US trade laws for some reason or usage of Back and Expert strategies is widespread in your trades, the MetaTrader 5 is considered a more suitable option for you.