The MetaTrader4 or MT4 platform was launched back in 2005. Forex traders spent their time exploring and learning about its user-friendly interface and robust technical tools for the next five years.
Then, things further changed in 2010 when the MetaTrader5 trading platform came into existence. Was it introduced as an upgrade to the MT4 platform? Yes and no. Each of the two platforms caters to a specific circle of traders. MT4 is more suitable for amateur or casual traders, whereas the MT5 platform is designed for advanced professional traders.
That being said, there are certain features of the MT5 platform that clearly outshine its predecessor. This guide delves into the potential reasons why the MT5 could be a better alternative to the MT4 platform.
Professional Technical Analysis
If there could be one superpower that every trader wishes to have, it would undoubtedly be the ability to predict price movements accurately. Thankfully, the MT5 platform sort of fulfils that. With 100 charts that facilitate monitoring all financial instruments along with 21-time frames, you can predict both short-term and long-term trends.
Not only that, but there are also 80+ in-built technical indicators with comprehensive price analysis capabilities. In case you need more tools, the same can be purchased. With the wide range of tools and indicators available, MT5 bolsters you for any market change!
This is another fascinating feature of the MetaTrader5 trading platform. Through algorithmic trading, AI robots can do the trading on your behalf. They do it by thoroughly analysing the platform and performing operations that align with a particular trading strategy.
The MQL5 environment makes this algorithmic trading possible. environment. The best part is even novice traders can take advantage. Use the MQL5 Wizard, and the assistant will guide you in assembling a robot.
If you’re an experienced trader, many more possibilities open up for you in the form of MetaEditor, complex programming language capabilities, and more. Even if you’re not conversant with programming, you can use ready-made solutions to create trading strategies.
Order Types and Chart Time Frames
The four basic order types of the MT4 platform receive an upgrade, with two more on the MT5 platform. These include buy stop-limit and sell stop-limit orders. This offers traders better flexibility in terms of how prices are triggered during buys or sells.
While the four basic order types – buy stop, sell stop, buy limit, and sell limit – are enough to carry out basic risk management, the additional two give greater control over the price movement. So, traders can build more robust strategies and trade executions to make the most of any market situation.
Coming to chart time frames, the MT4 platform has 9 offerings as it is built for simplicity. But, with the MT5 platform, you get 21-time frames for more comprehensive chart analysis. If you’re into CFDs trading or need more complex features, the MT5 is the way to go.
The Bottom Line
So you see, the MetaTrader5 platform may not have been created to be an upgraded version of the MT4. Or else, every new trader would start with it while experienced ones would need to switch to it by default.
Instead, it was designed to (mainly) suit the needs of more advanced traders. But, the advanced features definitely bring with it the ability to grasp market opportunities better.