MT5 is the electronic trading platform favored by traders and smaller organizations. The precursor to MetaTrader 4, it is the leading trading platform in its group. With MetaTrader, investors may reach out to banks to position trades on different properties. MetaTrader 5 has slowly increased in popularity thanks to its better functionality as opposed to the previous edition. Furthermore, MetaQuotes recently limited the right to issue new MA5 servers.
On both computers, users can use a detailed menu that is easy to use. They provide software that simplifies automatic trading and generates trading signals. The MetaTrader client provides various technological resources, including indicators and graphical artifacts. Brokers would be able to locate still more resources for their trades via MetaQuotes’ MarketPlace. However, several arguments render MetaTrader 5 a more robust alternative than the competition.
- MetaTrader 5 is an multi-channel trading platform
MetaQuotes, Inc. expanded MetaTrader 5 by integrating retail forex trading. For example, it will be more fitting for other asset groups such as equities and equities exchanges. MetaTrader 4 can only deal with over-the-counter (OTC) products (e.g., forex), and other asset classes come in the form of contracts for differences (CFDs). Brokers establish an instrument that is the counterparty to the business, thus serving as a market creator.
In contrast, MetaTrader 5 can trade these assets over an exchange with no broker as an intermediary. Hence, it can help remove the conflict of interest from the broker and could lead to a fairer execution in many cases.
- Historical data
When doing technical analysis manually or using tools, a trader needs to have as exact data as possible. In MetaTrader 4, there is no way to retrieve tick data from the server, and therefore, one has to depend on chart data or import tick data from an external source.
In MetaTrader 5, one can easily download accurate tick data directly from the broker’s server without looking for it from somewhere else. MT5 also greatly improved chart data storage support in the server, including more granular minute charts. All together makes MetaTrader 5 ideal for traders using technical analysis to support their investment decisions and trading algorithms.
- Execution types and charts
In MetaTrader 4 platform, clients can review previous price patterns from 9 different charts and use them in their algorithmic trading. However, the limitation on storage of price bars in MetaTrader 4 became a hurdle for frequent traders’ algorithms. When aggregating the one-minute (M1) data quickly into an average M5 or M15 chart, trading algorithms cannot make precise technical analytics of patterns.
In MetaTrader 5, however, the number of charts has grown from 9 to an impressive 21. Also, the amount of bars that can be stored on the MetaTrader 5 server has increased significantly. With these, the clients can now download high-quality and ready-to-use trading data on their first log-in.
MetaTrader 5 has introduced two additional pending order types: buy stop limit and sell stop limit. Traders can now place an order as a classic stop-limit order, and when the price reaches the stop-level indicated, a buy or sell limit order is triggered.
- Excellent support for market comprehension
One of the critical features missing in MetaTrader 4 is the market depth function. By having access to market depth data in the MetaTrader 5 platform, clients can better understand the market activity, hence better predicting their execution price based on the trade size for that symbol. Clients can also better evaluate the transparency on pricing from the broker. Of course, this requires that the broker has a price stream with enabled market depth.
- MT5 process orders faster
MetaTrader 5 is built on a 64-bit architecture and is multithreaded. It enables it to work better with parallel tasks for all users and speeds up back-testing trading algorithms.
MetaTrader 4 is built on a 32-bit architecture and is single-threaded; therefore, it has a cap on how much memory can be used. It limits the capabilities for extensive simulations required before putting the strategy in play on a live account.