Foreign exchange and online trading have become our everyday’s headlines. There are zillions of traders that rely upon the Mt5 Platform or MT4 platform for trading in the global market.
Do you know anything about these platforms? Or do you want to have clear information about these famous platforms?
We will answer your questions and fulfil your reading purpose.
Before we presume anything about these platforms, let’s get some basic information about Forex trading platforms.
Usually, Forex traders have choices to select the right trading platform for their needs. However, the choices that they make are somehow influenced by the choice of Forex broker because not every trading platform type has every broker. In many cases, seasoned forex brokers do not even have expertise in various platforms and mastery in a few specific platforms.
Through the forex trading platform, the things get sorted as it is a software that works as a bridge between broker and trader. They can easily deal with the system and operate the platforms. The procedure can work smoothly this way but if there are some malfunctions in the bridge then it affects the trading business.
There comes the MT4 or Metatrader 4 platform in the picture which is designed as per the industry standard. Most of the brokers prefer MT4 or MT5 trading platforms for trading. They never prefer to directly work through any in-house bridge to the platform. This is because it can be at a cost of commissions or high spreads.
Both MT4 and MT5 are produced by the same company which is called the Cyprus-based MetaQuotes Software Corporation, but MT5 is less commendable. Most of the traders and brokers prefer the MT4 platform to trade in the market. This is because of the opportunities that the platform offers to traders of different skill levels. They can have advanced technical analysis, algorithm trading, expert advisors, and a flexible trading system. In addition to this, it also offers mobile trading applications.
An overview of the MT5 platform
It took five years to launch Metatrader5 after the usage of the popular Metatrader4 platform. As the name includes the series, people considered it as an advanced version of Metatrader4. But, that’s not the truth. No doubt, MT5 works on the same concept of trading and backtesting and it also has graphical user interfaces that look like MT4. Precisely, MT5 was designed in 2010 to do something that MT4 could not. The main purpose of MT5 was a different market and this is why there is a difference between these two.
Difference between MT4 and MT5
There are many differences between these two trading platforms that we are going to highlight here.
- Metatrader 5 uses a programming language which is called MQL5 which is not the same as MT4. MQL5 language allows black box programming which can be easily understood and logically better.
- In 2014, MetaQuotes extended the same feature into MT4 so there remains no huge difference between these two platforms as of now.
- Programs designed for MT4 can’t run on the MT5 platform. It can be considered as the biggest drawback for traders who want to perform upgrades.
- However, MT5 has two major programming benefits over MT4 which are, it has a backtesting feature that you can test programmed trading strategies faster than earlier. Such a feature can save you lots of time. Another thing is that it allows multi-currency pair backtesting in parallel. This will speed up backtesting which can benefit the traders.
Now, you decide whether to choose MT4 or Mt4 Platform. Hope you find this guide useful.