As an investor, it is very important to have a comfortable trading software. Analyzing price movements can be a daunting task if you are not using good trading software. With the help of excellent foreign exchange market analysis software, you will be able to draw your favorite price data, such as average K-line chart, candle chart, time series and various technical indicators, and help judge market trends through technical analysis.
You have most likely heard of the two software MT4 (MetaTrader4) and MT5 (MetaTrader5). As of now, MetaTrader is the most popular online trading and market analysis software, helping investors access global financial markets in real time. MT4 is most commonly used in foreign exchange and CFD markets, while MT5 is also commonly used in stocks, futures, bonds, commodities and other markets in addition to the above markets, and can also invest in emerging cryptocurrency and binary options markets. These are the most important differences between MT4 and MT5. In addition, this article will continue to introduce other differences between MT4 and MT5:
Both MT4 and MT5 are developed by MetaQuotes, a well-known Russian software company, and are software suitable for foreign exchange transactions. MT4 was officially released on July 1, 2005, while MT5 was officially launched on June 1, 2010.
The early MT5 only supports the net position mode, while MT4 can support the hedging mode of the account, which causes a very big difference between MT5 and MT4 in use. In addition, the MT4 software trading products have limitations, and the programming is more complicated, and the MT5 software can just make up for these shortcomings. So one day in the future, MT5 will be as widely used as MT4 today.
Since the end of 2016, MetaQuotes has comprehensively promoted the MT5 platform through a number of decisions. In order to accelerate the utilization rate of MT5 in the foreign exchange market, MetaQuotes has continuously added functions that traders prefer, such as lock-up functions, market depth, and allowing one-click setting of market prices Orders and pending orders, etc. The MT5 platform retains two main programming features, one is the faster backtesting function, and the other is the simultaneous testing of multiple currency pairs. This makes some brokers abandon MT4 and choose MT5, which shows the difference and advantages and disadvantages of MT4 and MT5.
1. The difference between MT4 and MT5 The difference between the official version:
The "Difference between MT4 and MT5" comparison table on the MT official website can be said to be very intuitive.
Although MT5 has many powerful functions and is applicable to a wider range of markets, MT4 still retains a huge user base due to its more user-friendly functional design for the field of foreign exchange trading, and is still the most popular foreign exchange trading platform. . From the difference between MT4 and MT5, it can be seen that the two trading software have their own advantages and disadvantages, and investors should choose according to their own needs.
2. Detailed explanation of the difference between MT4 and MT5:
1. Installing
MT4 is a simple and easy-to-use software. Many users prefer to use MT4, because the installation of MT5 is more cumbersome than MT4.
2. Programming
MT4 uses MQL4, while MT5 uses a programming language called MQL5. The programming language of MT4 is similar to C, while MT5 is C++. MT4 and MT5 have some differences in the compilation of expert advisor functions. For example, MT4 is designed with MQL programming language, and its editing is faster and easier, but MT4 and MT5 cannot convert between data, and the underlying program is MT4 One of the key differences from MT5.
3. Charts and timetables
MT5 provides 21 kinds of timetables, while MT4 only provides 9 kinds. In addition, MT5 provides the function of opening an unlimited number of chart interfaces, and can open up to one hundred chart interfaces at the same time.
4. There is another benefit of using MT5 for basic analysis
. Users can get a built-in economic calendar, including the latest events, timetable, expected impact, market forecast, etc., but MT4 does not have this function.
5. Indicators and analysis tools
MT5 provides 38 built-in indicators, 22 analysis tools and 46 images, while MT4 only provides 30 built-in indicators and 33 analysis tools.
6. Supported markets
MT4 is specially designed by MetaQuotes for foreign exchange market transactions and supports CFD transactions. The MT5 system expands the scope of the supported market. In addition to foreign exchange, investors can also use it to trade futures, stocks, bonds, options and other products. In addition, when developing and promoting the MT5 platform, MetaQuotes aims to create a high record of retail and commodity transactions, so the focus of software design is also different. It can be seen from the above that MT4 and MT5 are supported by different markets, which is the second key point of their difference.
7. Depth of Market
The depth of market (DOM) of the MT5 platform is an important tool for traders. Through this function, they can understand the market liquidity at each price level. This brings an extra level of transparency and market intuition that is great for trading, a feature that MT4 doesn't have.
8. Order execution
The order execution principle implemented by MT4 is the Fillor Kill (FOK) mode, which means that the order is either immediately executed or all canceled, and partial execution is not allowed. However, MT5 allows partial transactions. Assuming that part of a trader's order is executed while the other part is not executed, a limit order or market order will be automatically formed. MT5 also complies with US regulatory laws and follows the first-in-first-out (FIFO) principle. In addition, MT4 independently records each transaction process and manages each position separately, while MT5 will automatically merge all transactions into one order. Order transaction is the third key difference between MT4 and MT5.
9. Pending orders (Pending orders)
MT4 has 4 different forms of pending orders, namely buy limit, sell limit, buy stop and sell stop ). MT5 has 6 forms of pending orders. In addition to the above 4 forms, it also adds buy stop limit and sell stop limit. These two new forms of pending orders allow traders to buy or sell at the set entry price. The form of pending orders is the fourth key difference between MT4 and MT5.
10.
When the operating system MT4 was released in 2005, most of the computers on the market were 32-bit operating systems, which determined that the MT4 platform was more compatible with this type of operating system. MT5 is developed in the environment of 64-bit operating system.
11. Order routing
The development time of the MT5 platform is closer to now, and its order path is more optimized than that of MT4. Forex brokers on the MT4 platform need to upgrade their systems to establish connections with financial institutions such as large international banks (such as JPMorgan and Citibank), while the MT5 platform itself integrates the systems of major liquidity providers in the foreign exchange market.
12. Transaction processing
Obviously, also due to the limitation of the development period, the transaction volume that MT5 can handle is better than MT4. MT4 can handle tens of millions of transactions, while MT5 has no limit on the number, and its database itself is designed for extremely large order flow.
3. How to choose MT4 or MT5?
Overall, the MT4 system is more than adequate for most day traders. However, if advanced charting and analysis tools are important to you, then an update to MT5 may be warranted.
Currently MT4 is still the most popular, the industry standard MT4 platform can provide services for traders of all experience levels, but for those investors who need complex advanced strategies, the MT5 platform may be a better choice.
Doo Prime is the largest partner of MT4 in Asia. At the same time, as an Internet broker under Doo Holding Group, based on the strong technical support provided by Doo Tech, it is also connected to Doo Clearing (UK FCA NO.833414) to provide customers with transactions The best liquidity in the market, Doo clearing is committed to providing the clearing closest to the buying and selling node, and completing the rapid execution of orders according to market conditions.
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