Advantages And Disadvantages Of MetaTrader4 And MetaTrader5 - Make a Decision Wisely

Published: 20th December 2011
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MetaTrader 5 is a new version of Mt4 designed to assist Forex traders make more profits. On the other hand, they offer different features and added benefits to both the Fx traders and brokers. Read this to help you make the best choice for your trading.

MetaTrader 5 is a new version of MetaTrader 4 developed to help Forex traders make more profits. However, they offer different features and benefits to both the Forex trader and broker.

Introduction

MetaTrader (MT) is an independent Forex trading platform that is used by both Forex traders and brokers. This Forex trading platform is designed for online Forex trading only. In particular, it is the most used Forex trading platform worldwide. This Forex trading platform was developed in 2002 by a Russian company called MetaQuotes. Its design offers several different options enhancing support and easy tweaking, which makes it popular with several experienced Forex traders. The MetaTrader is developed with its own programming language known as "What is MQL". The most popular forms of MetaTrader platforms are MT4 and MT5. MT5 is the newest version of MT4.

Charting Options And User Interface

The charting options and the user account interface of both the MT4 and MT5 are pretty much similar. The primary difference is that MT4 looks more bulky compared to this new version. MT5 has more spaced out icons with larger buttons. This greatly helps unlike the compact nature of the MT4. 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

Hedging is a key feature every Forex trader is concerned about. 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. Hedging let an aggressive trader take advantage of the available opportunity for quick scalping to some cash simply by going short on a few pips. However, with MT5 that seems impossible. A suggestion is for Forex brokers to use plug-in to facilitate hedging on MT5 platform.

Resource And Computer Space

The new version, MT5 takes lots of space than its predecessor MT4. Unlike MT4, in most computers, the MT5 usually consumes more than triple space required by computer RAM. However, this may vary with different computers. Although it consumes more computer space, the MT5 platform is undoubtedly a resourceful Forex trading platform. In addition, it is very efficient and offering more resourceful features.

Indicators and EAs

The MT5 platform is best for offering folders in the navigator windows, something that lacks in its predecessor. This is a neat feature that helps a trader to organize the indicators and expert advisors. In the default installation, the MT5 offer four folders for Trend, Oscillators, Volumes, and Bill Williams in the indicators section. You can easily open up the folder and select the indicator you need to apply. In addition to these, you can also create your own custom folders. However the worst news is that MT4s Expert Advisors and indicators cannot work for MT5 platform.

Backtesting

So far the development of MT5 platform does not support the Strategy Tester. Therefore a trader cannot backtest anything on MT5. Fortunately, there are hopes of implementing this feature that will allow trader to backtest as they trade. In case they include backtesting, it should be better than that of MT4. Backtesting is the weakest point of MT4.

Conclusion

Though they are developed to perform the same task, they are slightly different, offering different options. Both the Forex traders and brokers enjoy different levels of benefits from these outstanding differences. People hard lots of expectations from the new versions MT5 but unfortunately it is disappointing many traders. 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. However, it is still being tested and improvements are expected.

Every single platform has their very own benefits and you may need it in the future. Here's the important points of a great broker with both MT4 and MT5 together with free VPS service: a review of Exness broker. EA is an excellent strategy addition to any MT4 user, see the recommended on best forex EA.

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