MetaTrader 4 vs MetaTrader 5
What is MetaTrader 4?
MetaTrader 4 (MT4), developed by MetaQuotes Software, is an electronic trading platform used globally by forex and CFD traders. Released in 2005, MT4 has set a benchmark in the trading industry with its features and user-friendly interface.
Primarily, MT4 provides an opportunity to trade various financial instruments, including forex, commodities, and indices. Integrated with a range of technical analysis tools, the platform provides many built-in technical indicators and analytical objects. These tools help conduct thorough market analysis and make informed trading decisions.
Furthermore, MT4 offers mobile trading applications for iOS and Android devices. These apps enable you to execute trades, monitor currency quotes, and analyze the market while on the move. Whether you are in the office or traveling, the mobile platform ensures you remain connected to the market at all times.
In terms of security, MT4 employs encryption protocols to ensure that trading data and transactions are secure. Reliable data protection measures reassure traders about the safety of their investments.
How to Use MetaTrader 4?
Understanding how MetaTrader 4 works provides an edge in trading Forex, stocks, and futures.
Downloading and Installing
Obtain MetaTrader 4 by downloading it from the official MetaQuotes website or your broker’s platform. Installation is straightforward: run the downloaded file and follow the on-screen instructions. MT4 supports multiple devices, including PC, Mac, and mobile.
Logging In
Open the platform post-installation. Log in using your brokerage account details provided by your broker. After logging in, customize your workspace, configuring it to suit your trading preferences. This setup includes selecting chart windows, adjusting timeframes, and loading indicators.
Adding Symbols
Add the financial instruments to the Market Watch window. Right-click inside the Market Watch window, select ‘Symbols,’ and choose the assets you want to monitor. This step ensures you can quickly view and analyze the instruments.
Exploring
Familiarize yourself with the Navigator and Terminal windows. The Navigator window allows easy access to indicators, Expert Advisors (EAs), and your accounts. The Terminal window is crucial for managing your trades, checking account history, and viewing alerts.
Opening Charts
Open charts to analyze the markets effectively. Right-click on a symbol in the Market Watch window and select ‘Chart Window’ or drag the symbol onto an existing chart area. The charts can be optimized using various technical indicators and timeframes to suit your analysis needs.
Placing Trades
Use the ‘New Order’ button or right-click on the chart and select ‘Trading.’ You can place market orders, which execute at the current market price, or pending orders, set to execute at a future price. Manage your trades through the Terminal window, monitoring open positions and setting stop-loss and take-profit levels.
Top Features of MetaTrader 4
MetaTrader 4’s extensive features make it a preferred platform for many traders. The different purposes that the traders can use MetaTrader 4 for are as follows:
- Advanced charting tools allow the use of multiple chart types and timeframes for detailed market analysis.
- Automated trading through Expert Advisors enables the creation and deployment of custom algorithms to execute trades based on specific criteria.
- MT4’s built-in script and indicator library provide over 30 technical indicators.
- Customization allows traders to create custom indicators and scripts using the MQL4 programming language.
- The platform’s user-friendly interface ensures that both beginners and experienced traders can navigate and utilize its features effectively.
- MT4 supports multiple order types, including market, pending, stop orders, and trailing stops, providing flexibility in trading strategies.
MetaTrader 4 in Forex Trading
Forex traders benefit from MT4’s real-time access to market prices and liquidity. The platform provides essential tools for Forex trading, such as multiple currency pairs, advanced charting techniques, and thorough analysis tools.
MT4 allows traders to apply technical indicators like moving averages, Relative Strength Index (RSI), and Bollinger Bands to predict market movements. Automated trading through Expert Advisors enables traders to execute strategies without constant monitoring.
What is MetaTrader 5?
MetaTrader 5, or MT5, is a sophisticated web-based trading platform developed by MetaQuotes Software. Designed to cater to both Forex and stock traders, MT5 offers a thorough set of tools and features to facilitate efficient trading. Available since 2010, it has quickly gained prominence for its advanced functionalities, surpassing its predecessor, MT4, in several aspects.
Mobile trading brings flexibility to your trading activities. MT5 is available on mobile devices, providing full access to markets and allowing you to execute trades on-the-go. Whether traveling or simply being away from the desk, you can manage your portfolio effectively through the MT5 mobile app, available for both iOS and Android.
How to Use MetaTrader 5?
To use MetaTrader 5 (MT5) effectively, start by understanding its installation and navigation procedures. The steps include downloading, setting up an account, and exploring its features.
Download and Install
Download MT5 directly from the official website or through a broker. Choose between the desktop version, web platform, or mobile application for Android and iOS. After downloading, run the installation file. Follow the step-by-step prompts to install the software on your device.
Create an Account
Open a new MT5 account with a broker that supports the platform. This usually involves filling out a registration form with your personal details. If you have an existing account, transfer it to an MT5-compatible broker. Verify the account by submitting necessary identification documents.
Access the Platform
Launch MT5 on your desktop, web browser, or mobile device. Login with your account credentials. Familiarize yourself with the user interface. The main screen presents various modules like Market Watch, Navigator, and Terminal, which allow you to monitor instruments, manage accounts, and track trading activities.
Top Features of MetaTrader 5
MT5 offers several advanced features designed to improve your trading experience.
- Multi-Asset Trading: MT5 supports multi-asset trading, allowing you to trade currencies, futures, options, and stocks. This versatility assists in portfolio diversification and risk management.
- Algorithmic Trading: With the MQL5 programming language, MT5 enables the creation of automated trading strategies known as Expert Advisors. This feature helps execute trades based on predefined conditions without manual intervention.
- Technical Analysis Tools: MT5 comes with over 80 built-in technical indicators, enabling thorough market analysis. It also supports custom indicators to suit specific trading strategies.
- Advanced Charting: MT5’s charting tools offer multiple timeframes and chart types. Analyzing trends and patterns becomes more manageable with these detailed, customizable charts.
- Market Depth: Market Depth shows real-time supply and demand levels for different instruments. This feature provides insights into market liquidity and potential price movements.
MetaTrader 5 in Forex Trading
MT5 is particularly beneficial for Forex trading, offering several tools to navigate this volatile market.
- Real-Time Quotes: Receive real-time quotes for major and minor currency pairs. This ensures you have the latest market information before making trading decisions.
- Economic Calendar: MT5 incorporates an economic calendar, listing significant economic events and their potential impact on the Forex market. Traders can plan their strategies around these events.
- Hedging and Netting Options: The platform supports both hedging and netting functionalities. While hedging allows you to open positions in opposite directions for the same instrument, netting consolidates all open positions into a single one.
- One-Click Trading: One-click trading features enable quick trade executions directly from the chart or market watch window. This is crucial in the rapid Forex market.
- VPS Support: MT5 supports Virtual Private Servers (VPS). This ensures your trading operations run continuously, eliminating downtime and enabling uninterrupted algorithmic trading.
MetaTrader 4 vs MetaTrader 5
| Feature | MetaTrader 4 | MetaTrader 5 |
| Release Year | 2005 | 2010 |
| Primary Market | Forex | Multi-Asset |
| Built-In Indicators | 30 | 80+ |
| Supported Pending Orders | 4 | 6 |
| Programming Language | MQL4 | MQL5 |
| Economic Calendar | No | Yes |
| Strategy Tester | Single-threaded | Multi-threaded |
| Mobile App Features | Basic charting tools | Advanced charting tools |
MetaTrader 4 and MetaTrader 5 are both developed by MetaQuotes Software Corp. Although they share many similarities, distinct differences make each platform unique.
Purpose and User Experience
MT4, launched in 2005, primarily caters to forex traders. It offers a range of features suited for currency trading, such as 30 built-in technical indicators and 24 analytical objects. MT5, introduced in 2010, expands beyond forex to support trading in stocks, commodities, indices, and ETFs. This multi-asset capability makes MT5 more versatile for traders seeking to diversify their portfolios.
Technical Analysis Tools
While both platforms provide technical analysis tools, MT5 surpasses MT4 with over 80 built-in indicators. This broader selection allows for a more detailed market analysis. Both platforms support custom indicators, but MT5’s advanced charting tools and depth make it a more powerful option for experienced traders.
Algorithmic Trading
MT4 uses the MQL4 programming language, enabling users to create Expert Advisors for automated trading strategies. MT5 introduces MQL5, a more sophisticated language that facilitates complex algorithms and offers better performance, making MT5 advantageous for algorithmic traders requiring advanced tools.
Order Types and Execution
MT4 supports four types of pending orders, while MT5 supports six, including Buy Stop Limit and Sell Stop Limit. The additional order types in MT5 provide greater control over trading strategies. Moreover, MT5’s advanced execution modes and enhanced order management further bolster its appeal to serious traders.
Economic Calendar
One notable feature in MT5 absent in MT4 is the economic calendar. This tool provides real-time updates on economic events and announcements, helping traders make informed decisions. For traders relying on fundamental analysis, the inclusion of an economic calendar is a significant advantage.
Why Trade with Eurotrader and MT4?
Choosing Eurotrader as your broker paired with the powerful MetaTrader 4 platform creates an optimized trading experience. Eurotrader’s competitive spreads improve your potential profitability. Tight spreads mean you can enter and exit trades more efficiently, maximizing your trading edge. Additionally, the enhanced liquidity pool at Eurotrader connects you with major banks and financial institutions, ensuring smoother and more consistent trading executions.
Eurotrader provides fast execution speeds, ensuring your orders are processed in milliseconds. This speed is critical, especially in volatile markets, as it reduces slippage and increases the likelihood of executing trades at desired prices. Eurotrader’s commitment to transparency and quick response to market conditions aligns perfectly with MT4’s effective security measures, creating a fair and secure trading environment without dealing desk interventions.
The flexibility offered by both Eurotrader and MT4 is unmatched. Eurotrader’s adaptable platform settings cater to traders of all experience levels, whether you’re a beginner, intermediate, or expert trader. You can tailor your trading strategies using MT4’s customizable interface, creating personalized trading indicators and automating strategies to match your trading style.
Frequently Asked Questions
How Do You Use an MT5 Demo Account?
An MT5 demo account lets traders trade in a risk-free environment, mirroring real market conditions. First, download the MetaTrader 5 platform from the official MetaQuotes website or a trusted broker. After installation, open the application and select “File” from the menu. Click on “Open an Account,” then choose “New Demo Account”.
Once your demo account is set up, you’ll see a list of financial instruments on the left side of the screen under the “Market Watch” window. To start analyzing markets, right-click on any instrument and select “Chart Window.” This opens a chart where you can apply various technical indicators by clicking on the “Insert” menu. Indicators like Moving Averages and Bollinger Bands can aid in making trading decisions. The account balance and equity continuously update, allowing you to monitor your trading performance without financial risk.
Can automated trading be used on MetaTrader?
Yes, both MT4 and MT5 support automated trading through Expert Advisors (EAs). These are custom scripts that execute trades based on predefined criteria, helping you automate your trading strategies.
What financial instruments can be traded on MetaTrader platforms?
MetaTrader platforms allow trading of various financial instruments including forex, commodities, indices, stocks, and ETFs. MT5 offers broader multi-asset trading options compared to MT4.
How Do I Set Price Alerts with MetaTrader 4?
To set price alerts, right-click on the chart where you want the alert, then choose “Trading” and select “Alert.” A dialog box will appear for configuring your alert details, including properties like the price level and expiration. You can also customize alert conditions using different types (e.g., bid, ask, last, volume) and frequency (e.g., once, repeat). Upon hitting “OK,” MT4 will begin monitoring your criteria. When your specified conditions are met, MT4 notifies you through sound, pop-up messages, or emails, depending on your settings.
Disclaimer
Eurotrader doesn’t represent that the material provided here is accurate, current, or complete, and therefore shouldn’t be relied upon as such. The information provided here, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. We advise any readers of this content to seek their advice.
