MetaTrader 5 is the upgraded version of MetaTrader 4 insightfully designed with a vision of helping traders makes more profits. However, they offer different features and benefits to both the Forex trader and broker.
Introduction
MetaTrader (MT) is a special and independent platform used for Forex trading by both Forex brokers and traders. This Forex trading platform is designed for online Forex trading only. To be specific, it is the most popularly used Forex trading platform globally. The MetaTrader platform was developed by MetaQuotes, Russian company in 2002. Its design offers several different options enhancing support and easy tweaking, which makes it popular with several experienced Forex traders. The MetaTrader comes with its own built-in programming language referred to as “What is MQL”. The most popular forms of MetaTrader platforms are MT4 and MT5. MT5 is the upgrade of the original MT4 version.
User Interface And Charting
Both the MT4 and MT5 use pretty much similar account interface and charting options. However, MT4 looks a little more bulky when compared to MT5, which is the primary difference. The new version MT5 is designed with more spaced-out icons featuring large buttons. This is greatly helpful as compared to the compact nature of the older version. However, the disadvantage is that it takes up much of the precious space in terms of pixels. Actually it wastes the useful chart space. The Fibonacci Retracement tool works well in MT4 as compared to this new version.
Hedging
Every Forex trader is concerned about the hedging feature. Unlike the predecessor, the MT5 does not work well for hedging. For example, traders using MT5 cannot hedge out when trading on two systems say swing system and scalping system. Through hedging, you can take advantage of an opportunity for quick scalping and make some cash by going short with just few pips. However, that seems impossible with MT5. It is suggested that Forex brokers can facilitate hedging on MT5 using plug-in.
Computer Space And Other Resources
Unlike MT4, this new version takes lots of computer space. As compared to MT4, the MT5 consumes more than triple the RAM space. But this varies significantly depending on the computer. Even though it consumes more computer space, the new version is preferred because it provides the most resources for online Forex trading. Besides, MT5 is very efficient and designed to offer more features which are undoubtedly resourceful.
Indicators and EAs
The best feature of MT5 is its introduction of folders particularly in the navigator windows. Actually this is a neat feature developed to help traders easily organize expert advisors and indicators. The MT5 provides four folders for Oscillators, Volumes, Trend, and Bill Williams under the indicators section in the default installation. The trader can easily open any of these folders, select and apply the appropriate indicator. In addition to these, you can also create your own custom folders. However the worst news is that MT4ÂOEs Expert Advisors and indicators cannot work for MT5 platform.
Backtesting
By now, MT5 platform is not compatible with the Strategy Tester. Therefore a trader is not able to backtest anything. However, this feature may be implemented so that traders can effective backtest while trading. In case they include backtesting, it should be better than that of MT4. Backtesting was significantly the weakest point o MT4.
Conclusion
Both the MT4 and MT5 are designed to perform the same function but are slightly different in terms of features and options offered. Both the Forex traders and brokers enjoy different levels of benefits from these outstanding differences. Although people had high expectation about the new version MT5, it is a hell of problem disappointing many. Most Forex traders prefer to work with MT4 considering the new version a letdown. Specifically, MT5 platform hinder trader from taking advantages of several opportunities to gain potentially. The good news is that it is still under test and improvements are expected sooner.