Today, many forex brokers prefer Metatrader 5 and easily abandon its predecessor. What is the reason why many traders switch from MT5 to MT4? Do experienced traders need new features?
Before we get into that, let’s introduce you to the Metatrader 5 trading platform in a few words.
Metatrader 5
The Metatrader 5 trading platform was created several years after MT4 and includes a wider range of features, tools and markets for trading in general.
Many people think that MT5 is an updated version of MT4, however, these platforms are created with different purposes.
There’s no doubt that Metatrader 5 is a more advanced platform than MT4. The fact is that on the MT5 platform the range of charts and tools for market analysis provided is wider than on MT4.
The main tools that MT5 offers that are missing from MT4 are:
- economic calendar – with an economic calendar, all the data on important events will be at your fingertips in real time. With it traders can do fundamental analysis and stay updated with market trends.
- built-in VPS service – so that your automatic trading system can continue to work even when the Internet or electricity goes out, you need to connect a VPS. In MT5 this is already built-in and traders do not have to worry about it.
- the fourth order execution – MT5 supports four execution orders at once, unlike MT4 which has three of them. To MT5, an exchange order execution was added.
- unlimited number of charts – while MT4 offers 100+ types of charts, the MT5 has no limits in choosing charter types.
By the way, in the list of advantages and offers can be added a simple way to download the platform too. You can check the MT5 download details here in case you want to start trading with it. It will save your time and the deals will be more efficient.
Why are Forex traders switching from MT4 to MT5?
MT4 has some similarities with MT5 but when you look at what makes them different, there are several key differences between these two platforms which can be used by any trader to find their perfect match depending on how they want things done in-trading.
Apart from the above tools that the MT5 platform offers, there are some reasons why traders switch to it. We have picked 3 of them.
- Worldwide markets availability – MT5 is a multi-asset trading platform that offers many advantages over MT4. On this newer platform you can trade both currency pairs as well stock markets among other things like futures contracts or even bitcoins. While MT4 is designed for a narrower range of users, namely Forex trading. Experienced traders who have decided to diversify their “trading days” switch to the MT5 platform to start trading other assets.
- Programming language MQL5 – In order not to talk about all the features, charts and functions built into this platform which are predominantly more powerful than MT4, let’s pay attention especially to its programming language. You can create “trading robots” that will automatically trade on their own. With the help of this, your direct participation in trading is not required. Of course, MQL4 has a similar function, but it is not so powerful.
In addition, MT5 users have access to trading signals from major financial markets, which can be used in algorithmic trading.
- Faster test strategies – With MT5 you can make changes on your strategy in a quicker time period than with MT4. You can take a look at more historical data in less time to be sure the strategy you chose is effective enough. While using MT4, viewing historical datas takes longer than with the latter.
If you need to make some changes in your strategy from the point of saving time MT5 is more efficient.
Conclusion
MT5 is a great platform for traders who want to improve their skills. It has many features and functions that were discussed in the article, so if you decide to use it side-by-side with your trading experience – now is the best time to do it.