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The trading platforms developed by MetaQuotes Software Corp. have long gained popularity among traders from all over the world. The most famous products are MetaTrader 4 and MetaTrader 5. Many people mistakenly believe that MetaTrader 5 is an updated version of the previous platform, but there is a significant difference in the terminals: MT4 is intended for trading on the foreign exchange market, MT5 is a universal product that works both with currencies and and with the stock exchange. Different possibilities of use entail other differences between MetaTrader 5 and MetaTrader 4.

Development language

The first difference between the two programs is the programming language in which they are written. MQL4 was used for MT4, MQL5 for MT5, incompatible with each other. MetaTrader 5 has a strengthened object-oriented logic and a developed test system for checking the efficiency of EAs on historical data, as well as advanced analytical tools.

Interface

Despite the completely different programming languages, when MT5 was released, the developers retained the familiar design of the working window. In the new version, the Depth of Market has been added, which allows you to keep track of up-to-date data on quotes and transaction volumes.

Timeframes

MetaTrader 4 has a total of nine timeframes – four minute, two hourly, day, week and month. In the updated version, there are already 21 of them. The range of minute and hour charts has been significantly expanded. You can choose the appropriate one in the “Charts” section of the menu.

Analytics

Both platforms come with numerous technical analysis tools, but MT5 has more. For example, 38 built-in indicators versus 30 in MT4. Added the possibility of wave analysis using Elliott waves. The charts are presented in the same forms – Japanese candlesticks, bar and line. The number of those used at the same time reaches one hundred. Additional indicators can be obtained from the Library if necessary.

The updated MetaEditor does not require advanced programming knowledge and allows you to independently create advisors and indicators, and the Strategy Tester allows you to pre-test them on historical examples using different assets. An additional difference is the ability to overlay indicators for a smoother picture.

The obvious disadvantages include the incompatibility of Expert Advisors developed for MT4 with the new version of the platform. MT5 includes fundamental analysis capabilities – an economic calendar and a news feed that displays significant events in the financial world in real time. In the previous version, the updated data should be monitored in separate sources.

Possibilities of orders

MetaTrader 4 uses four variants of pending orders, there are six of them in the updated platform, which allows you to create a more flexible trading system. The new Buy Stop Limit and Sell Stop Limit set an additional benchmark for performing familiar operations. Setting the first one gives an order to execute Buy Limit at a price lower than that indicated in the pending order. The second one launches Sell Limit, provided that the market price is higher than the set one. Partial order execution is allowed.

A common complaint about MetaTrader 5 was the lack of hedging. The situation was fixed after the updates were released. But the possibility of opening an order without locking was preserved.

Controlling stop loss and take profit with the mouse was originally only used in MT5. But the new MT4 modification has received a similar ability. This makes it much easier to change the corresponding levels – just drag and drop.

In MetaTrader 5, there is a one-click deal directly from the trading chart.

Copy trading

The function of copying operations of the best traders is available in the fifth version through the Trade Alerts service. For this, the analysis of the trading results is carried out and a subscription is made. It can be paid or not. With indicators above average, the user is likely to become the subject of subscriptions.

Trading instruments

MetaTrader 4 is designed to trade exclusively in the foreign exchange markets. MetaTrader 5 is a multi-market platform. With it, both foreign exchange and stock markets with operations in securities are available. You can work on several exchanges at the same time.

Server software

MT4 has one dedicated server, limited in relation to other servers. There are four of them in MT5 – access, trade, history and backup. This undoubtedly speeds up the process of work.

Reporting

To analyze the program’s own results, it is possible to output reports on the operations performed. In the fourth version, they are available exclusively in tabular form, in the fifth, graphs are additionally used. Five indicators can be assessed: the number of trades, the expectation of profit, average profit, loss and profit factor.

MetaTrader Market

A special store has appeared in MetaTrader 5, where you can purchase various robots, trading applications and literature related to trading. Additional products do not require separate installation, but are activated immediately after purchase.

Alerts

For a timely response to market events, MT5 provides special sound signals – alerts. You can set up their duplication to your phone or email. The melody to choose from – standard or custom version.

Versions for smartphones

Trading terminals have mobile counterparts with functionality that practically does not differ from the original full package for a computer. The ability to trade without being tied to a specific location is very convenient. Such applications are developed for the two most common operating systems – Android and iOS.

It is difficult to decide whether to choose MetaTrader 4 or 5 right away. It is better to focus on personal preferences, although more and more brokers are choosing MT5, leaving no alternative. Due to its versatility, the possibility of numerous add-ons and the use of various trading instruments, the program is quite capable of pushing its predecessor out of the market.

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