There’s no way that when you get involved in forex you wouldn’t hear of Metatrader. Many brokers across the world use this trading platform to trade. It is merely a software that’s commonly used for trading. Forex Traders across the globe have put so much trust in this software that I also recommend using it.
Metatrader is a connection channel software that lets you trade your foreign currencies. However, as a trader, you have a choice to use any trading platform you prefer, as most brokers have their own trading platforms.
Some brokers don’t have compatibility with most forex trading platforms and only offer access to these platforms through a bridge. You just have to put faith in your broker that, the execution and management won’t be slow as this can affect your entire account.
Metatrader has two different types of MT Trading Platforms:
- Metatrader 4 (MT4)
- Metatrader 5 (MT5)
Metatrader has the fastest execution, fast trading with immediate execution. The software is very light, hence there will be no lagging effect on your servers and/or computer. It is possible to run multiple platforms hassle-free.
Metatrader has been around for a long time and improves over time. With Metatrader, one of the trusted flatforms around the globe, you get more features and functionality than with other platforms.
You can analyze the charts and graphs – plotting trends and plan your trade. The Graphs that are supported, includes Candlestick, Renko and Heikin Ashi.
The download and installation are easy, setting up orders is a bliss – stop losses and targets are executed immediately.
It is best to follow your trades, for every currency pair traded, Metatrader offers it’s historical trading data, which is easily downloaded, You may create or request a detailed report of your positions as well as tracking charts and graphs.
Expert advisors (EA’s) Compatibility
EA‘s ability is to automate your trading using scripts uploaded to the platform with instruction, executed easily. This gives the advantage to stay off your computer, you won’t have to worry about trading opportunities.
In the programming world, systems coded with MQL4 are not compatible with MQL5 – The code needs to be rewritten completely to support compatibility. Unfortunately, EA supported on Metatrader 4 (MT4) is not compatible with MT5.
Perhaps the old MetaTrader 4 is always better – MT4 is one of the most popular platforms of Metatrader and gives you plenty of features that allow you to trade online. This Platform allows you to use the most complex trading strategies implemented by the trader.
All this can be done in just one interface. Metatrader uses MQL language developed by MetaQuotes Software Corp. The Script is merely designed/programmed for online trading and help to easily facilitate automated trading and more.
Looking deeper into MetaTrader 5
MT5 is less popular and has been around since 2010 – this was five years late when MT4 was released. MT4 was already very popular. With the release of the newer version, it was already assumed that – MT5 was gonna be better.
This wasn’t the case at all, because MT4 and MT5 both do the same job but have different features and purposes. However, the interface looks and feels fairly the same.
So here’s a big reason for MT5 – it was developed so it can do most functionalities that are not available on MT4. It also reported that MT5 was aimed at a different market and so the two cannot be necessarily compared.
MT5 was also developed to trade more than just Forex, it’s purpose was to add stocks and commodities.
What’s the difference between MT4 and MT5
MT5 has a lot of improvements – with Six types of pending orders as compared to four types of pending orders on MT4, to add on it, MT5 has 2 types of stop orders. Just as discussed above, the main purpose of MT5 was to focus on other markets like Indices, commodities and equity CFD – This, however, depends on the broker.
MT5 has additional time frames to the charts – this includes11 types of minute charts and 7 types of hourly charts – you can choose time frames: daily, weekly, monthly and yearly – not to forget MI: Ghost Protocol and MI: Rogue Nation.
You get news in a form of the economic calendar, with schedules, market consensus and more. This includes MQL forex market products, more technical indicators, 22 Analytical Objects, 46 Graphical objects, Agent Manager for remote optimization – and a well-developed strategy tester for EAs.
MT4 Platform has been around for a while, and its popularity precedes it – MT4 is EA compatible and the compilation is done through MQL Language. MT4 is one of the most commonly used platforms by most brokers and thus has a lot of community support behind it.
MT4 supports hedging (Buying and selling the same currency pair simultaneously) and LIFO (first in, first out) – this also depends on Broker’s limitation as well as your region from where you are trading. It is also reported that MT4 is much lighter than MT5 – with so many improvements on MT5, it uses a lot more RAM.
MT4 supports hedging, but MT5 now supports hedging, this would’ve been the best platform to use in the U.S.A. One could’ve concluded that MT5 was developed for U.S Markets – which perhaps is not the case, but it is, however, build to accommodate non-Forex Markets which are plenty out there.
If you have been using MT4 for a while now, you should know that programs that were designed to run on MT4 are not compatible with MT5. MT5 might seem like an upgrade – with all these features might seem like one, but – you can’t start over, for the mere fact of upgrading. If MT4 works for you stick to it and if MT5 has features you wanna use, then use MT5.
Summary of Comparison between MT4 and MT5.
Metatrader 5 features include:
- Partial Order Filling Policies
- You can easily Fill or Kill Immediate or Cancel Return
- 6 Types of Pending Order Types
- Supports Depth of Market
- offers Time&Sales (Exchange data)
- 38 Technical Indicators
- 44 Graphical Objects
- 21 Timeframes
- Supports Economic Calendar
- Email System with attachments
- Transfer funds between accounts
- Embedded MQL5.community chat
- Strategy Tester – Multi-threaded + Multi-currency + Real ticks
- Multilingual Unicode
- Unlimited Symbols
- Supported Markets – Forex / Futures / Options / Stocks / Bonds
- Offers Exchange Trading
Metatrader 4 features include:
- You can set additional executions – Fill or Kill
- 4 Pending Order Types
- 30 Technical Indicators
- 31 Graphical Objects
- 9 Timeframes
- Email System with no attachments
- Strategy Tester is single-threaded.
- Supports Hedging
- 1024 Symbols
- Supported Markets – Forex
WHAT TO CHOOSE, MT4 or MT5?
we’ve gone through the features and differences between the two, however, new information has just emerged that actually, MT5 supports hedging. I would’ve recommended MT5 for the U.S.A residential to comply with their regulations. But this doesn’t mean you can’t trade with MT5 – you can trade with whichever platform you think suits your needs.
Despite the fact that MT4 is one of the golden platforms of our days, and it’s popularity just proves as much that, it’s yet the best and most used platforms in our generation.
Metatrader Software or WebTrader (Browser-based)
The last thing as a trader that you want to deal with is a lot of glitches – not to say the MetaTrader browser-based platform is a flaw – but the glitches on it are a lot more than when using the software.
My personal recommendation is to use the Software. However, if any other way works for you, keep at it.
You don’t want to be on a platform that crashes, slow and time-consuming – traders want something reliable and easy to use. Despite the annoying features on MT4 as reported by many traders, they still stick to it, ‘long as it keeps them at the top of their trading environment.
The platform is just one thing, choosing a very reliable and honest broker should be your first priority.