Make the Right Choice Between MT4 and MT5 Platforms

IC Markets is the largest Australian forex broker for retail trading, with an average trading volume of over $18.9 billion per day. The Australian Securities and Investments Commission (ASIC) regulates trading. Over 54% of retail traders use online platforms like MetaTrader for their transactions. Every trader involved in forex trading is familiar with the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. These software programs rank the best among traders and advisors in the trading market. They offer many resources and tools to help traders evaluate trade positions and take appropriate actions.

Although on face value, it seems like the MT5 is an updated version of MT4, in reality, the two platforms offer different functions and solutions to serve distinct trading audiences. The choice between the two platforms depends on the trader’s background, goals, experience and numerous other factors.

Types of Assets They Want to Trade

One of the most significant differences between the MetaTrader 4 and MetaTrader 5 is the types of traders they attract. Traders whose focus is on forex transactions opt for the MT4 platform for use. On the other hand, MT5 has broader applications in the trade market, including stock, futures trading and contract-for-difference (CFD). Therefore, it has additional features that may not be relevant for traders who focus on one particular trade. But, those who have multiple assets and trading goals can benefit significantly from the platform. One must keep in mind that even though they can use the MT5 platform to trade forex, the features may not be as robust as the other. Traders would either sacrifice optimal performance or underutilise the platform if they pick the wrong one.

Access to the Financial Information eXchange API

The FIX API is a crucial tool for traders who seek real-time information regarding stocks, shares, currencies and other financial securities. The traders and market regulators use the tool to exchange important information about the trade before and after and regarding new and executed orders. Having access to FIX API provides numerous advantages to traders. They would have better access to financial information while trading on a forex platform. Their information would have a standardised format to help streamline communication across different languages. The tool also aids them with building black-box strategies or algorithms to analyse forex trade. Therefore, those who seek FIX API tools must use the MT4 platform as MT5 does not have the tool integrated.

Follow Time Frames

Newcomers and novices in forex trading do not need access to complex chart time frame data. The MT4 platform works better for them as it is simple and provides all the resources they need to trade without complicated irrelevant features. Traders can choose one out of the nine-time frames in MT4 to conduct chart analysis. On MT5, however, traders can choose from 21 different time frames, significantly more from the ones available on MT4. For many retail traders, these customisable time frame options are unnecessary. However, experienced traders who trade CFDs benefit from having access to specific time frames to gain crucial information to execute well-informed trades.

Access to Types of Orders

The MetaTrader 4 platform offers four basic order types for traders. These orders include the sell limit, sell stop, buy limit and buy stop. For many, these types are sufficient to execute their trading strategies while minimising their risk and gaining control over their enter and exit positions. MT5 offers two additional order types: sell stop limit and buy stop limit. These provide experienced traders with the flexibility to monitor price movements, and trigger buys and sells.

 

 

By Mussarat Zafar

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