What exactly is MetaTrader 5?
The first thing you need to remember is MT5 is a completely new platform and not an upgrade from MT4. The initial platform MT4 came out in the year 2005, and was designed specifically for traders who trade in forex. The platform was built to handle orders and positions in a certain manner.
The platform gained a lot of popularity and it became apparent that there was a need from traders who trade on stocks for an identical platform. However, MT4’s system for handling positions was not in compliance with the regulations for trading for certain stock exchanges. MT5 was created with an entirely different method of handling orders and positions to be in compliance with these rules. In the meantime there were many additional features were added on to the system.
The differences between MT4 vs MT5
Apart from the main differences in the platforms a variety of new capabilities were made available to the MT5. While MT4 provides four kinds of pending orders that are available, MT5 introduces 2 additional types of pending orders. They allow for limitations to be set on orders that are conditional. This gives you greater control over stop-loss order.
MT5 includes 21 timeframes, as opposed to MT4’s nine timeframes. The nine timeframes that are included in MT4 are quite typical. MT5 includes 2,3,4,6 and 20-minute charts as well as 2, 3 as well as 6-hour charts. The strategy backtesting MT5 uses is superior. It’s multithreaded meaning that several simulations can be performed simultaneously. For those who are creating automated strategies it is an enormous benefit. The tick data and 1-minute data is handled in a different way. In MT4 you have to download the data manually. In MT5 it updates and downloads automatically. Data on sales and time are available through MT5 that is pertinent for traders in the stock market.
While MT4 contains the majority of typical indicators you’d require, MT5 includes 8 additional indicators. It’s not a major distinction since any indicator you need is able to be downloaded and then added to any platform. MT5 adds a number of new analytical tools to help identify patterns and cycles. The most significant difference from ordering and positioning handling is that MT5 is able to trade different asset classes, and with multiple accounts and multiple currencies. The MT5 platform also allows you to create multiple trading accounts and then transfer money between one bank account and another.
The MT4 and the M5 — which one is the better choice?
If you’re wondering which one is more suitable or most suitable for your requirements it is likely the MT5 platform, but it’s not always. It is better to use MT4 for those who are sure that you’ll be only trading CFDs and forex and you wish to make things simple. It’s a much simpler platform that is easier to get to know.
If you’re a stock trader or multiple asset classes MT5 is the ideal option for your. If you’re unsure about MT5, it’s your best choice. It isn’t a good idea to learn how to make use of MT4 but then discover you’d like to trade stocks but require MT5 as well. The learning curve is a bit more steep for MT5, however you’ll be able to choose more options and have more capabilities available to you.
