In 2010, when MetaTrader 5 was released, instead of completely replacing MetaTrader 4, traders were able to choose between using either one or the other, depending on the traders needs and preferences.
Although the majority of brokers only offer MetaTrader 4 in addition to other trading platforms, often including the broker’s in-house proprietary trading platform, a lot more brokers are signing up with MetaQuotes to offer MetaTrader 5 as well.
There is, as of yet, no mention of MetaTrader 6 and whether it is in development or whether it will be developed and released, following the 10 years MetaTrader 5 and the 15 years MetaTrader 4 have been available for use.
MetaQuotes is still updating MetaTrader 5 with new functions and features although it would seem that there is no other potential left for MetaTrader 4 considering further improvements and development.
When considering the functions and features that exist in both MetaTrader 4 and 5, users and providers can only speculate what MetaTrader 6 would offer considering that MetaTrader 4 and 5 are both comprehensive and powerful trading platforms.
MetaTrader 4
MetaTrader 4 remains the most popular trading platform being utilized by traders today and offered by numerous brokers even after 15 years since it was first released.
This trading platform competes with various others, even the in-house proprietary trading platforms that brokers offer their clients to better align trading activities with broker services.
MetaTrader 4 is the best trading platform which is used by an estimated 40% of retail Forex traders and not only is it free for use, it is also a lightweight software that can easily be installed and used on both desktop computers and a variety of mobile devices.
One of the most important factors which determine the success of a trading platform is the availability of mobile applications. This is due to the largely digitalized world and the need that traders have to be able to trade while on the move.
A lot of traders do not have the privilege nor the luxury or ability to remain stationary in order for them to trade by using desktop versions of trading platforms, and thus providing mobile applications that mirror desktop version functions and features is essential.
MetaTrader 4 is available to a variety of devices running different operating systems such as Windows, Linux and Mac on desktops, Android, and iOS on mobile devices.
Downloading and installing the trading platform is simple and hassle-free, despite Mac and Linux requiring additional software to run MetaTrader 4 as it is a MS Windows Application.
Integration between the desktop version and mobile applications is flawless and thus traders can manage their accounts and participate in trading activities from either desktop or mobile without having to worry about accounts and activities synchronizing.
MetaTrader 4 Features
Customizability and Charts
One of the prevailing features of MetaTrader 4, that was also carried over to MetaTrader 5, is the ability that traders have to customize the interface along with charts and other aspects of the trading platform to better suit their preferences and needs.
Traders can easily customize charts by choosing between three chart styles, change the colour scheme of data represented, add/remove some features, change timeframes, add/remove technical indicators and analytical objects, and more.
MetaTrader 4 provides traders with the opportunity to choose between 9 different time zones in which to view charts in addition to being able to use 30 indicators and 24 different analytical tools when conducting technical analysis.
Traders are not merely limited to indicators and tools that are built into the trading platform, more can be downloaded from the Code Base, obtained from the Market, or traders can order more from independent developers through the Freelance Service.
Ease with which trades can be executed
MetaTrader 4 is extremely easy to use and allows traders to perform trades despite factors that influence the markets by providing various types of markets in which to trade, different orders and execution modes in addition to trailing stop.
Traders can use either instant, request or market execution orders in addition to market orders, pending orders, stop orders and trailing stop.
When opening a trade using the MetaTrader 4 trading platform, traders are able to set both their stop loss and take profit limits either at the beginning of a trade, or by modifying the order when it has been placed.
Expert Advisors or EAs
This is one of the distinctive and unique characteristics which set MetaTrader apart as a whole, despite traders using MetaTrader 4 or 5 although MetaTrader 5 offers more comprehensive development and use of EAs during trading.
When using EAs in MetaTrader 4, traders are able to input a set of commands and parameters and EAs trade on behalf of the trader based on these commands and parameters.
Traders have access to an array of EAs that can be obtained from the Code Base, the Market or by using the Freelance Service.
Though traders may not be able to utilize MQL4 to develop EAs and import them to the trading platform for use, traders can make use of MQL5 along with its more advanced and comprehensive options.
Trading Signals
MetaTrader 4 provides traders with the ability to subscribe to trading signals of professional traders and to have their trades copied to the account of the trader.
Traders have the option of choosing from more than 3200 commercial signals some of which are free while others require a subscription fee. Should a trader have the necessary skills, experience, and knowledge they may also opt to become signal providers.
In addition to these features, MetaTrader 4 is suitable for both beginner traders as well as professionals.
MetaTrader 4 makes provision for comprehensive technical analysis along with fundamental analysis by providing economic and financial news which can be accessed from within the trading platform.
MetaTrader 5 Features
Flexibility
MetaTrader 5 was built on the same principles as MetaTrader 4 in that it is a highly customizable and user-friendly platform which can be used by both beginners and professional traders.
MetaTrader 5 allows traders to view Market Depth along with the provision of a system that can cater for separate account of orders along with trades, thus including the traditional netting system along with the hedging option system.
MetaTrader 5 supports four execution modes which includes instant, request, market, and exchange in addition to offering all types of trade orders which includes market, pending, stop orders and trailing stops.
Technical Analysis
MetaTrader 5 provides access to a vast array of tools that can be applied to charts including 38 technical indicators and 44 analytical objects in addition to the ability of having up to 100 chart windows open simultaneously.
More tools and indicators can either be downloaded from the Code Base or the Market and traders can either order from independent developers through the Freelance Service, or they can develop and implement their own using MQL5.
Traders also have a choice between 21 timeframes in which to view charts to aid them in conducting a comprehensive technical analysis to assist them in making trading decisions more accurately.
MQL5
The concept of MetaQuotes Language, or MQL, was one that was around from the very beginning since MetaQuotes released the first MetaTrader client terminal in 2000 shortly after the company’s inception.
Over the past 20 years, MetaQuotes has not failed in providing an environment where the possibilities are truly endless, whether traders want to conduct social trading, or develop either indicators, tools, or Expert Advisors, and so much more.
Expert Advisors, algorithmic trading, and the strategy tester
Trading robots, or Expert Advisors (EA for short), can be used by traders to execute trade operations on various markets on behalf of the trader.
This is also known as algorithmic trading and where MetaTrader 4 was advanced in its offering, MetaTrader 5 improved this by also providing traders with means to test their algorithmic trading strategies by making use of the strategy tester.
EAs can either be obtained through the Code Base, from Market, through the Freelance Service or traders can opt to develop their own by using MQL5.
By making use of the strategy tester, traders are able to conduct visual testing, optimization, genetic algorithms and more in addition to having access to a distributed network of testing agents, amidst several other services provided.
Other features
MetaTrader 5 has the same basic features which are included in MetaTrader 4 with the exception that traders have access to so much more.
When using MetaTrader 5, traders can still make use of signal and copy trading, VPS and other functions and features but with improved and added benefits including that MetaTrader 5 has more potential for future developments and improvements.
Outlining significant differences between MetaTrader 4 and 5
When viewing both MetaTrader 4 and MetaTrader 5’s features, it is clear that both platforms are powerful, comprehensive and advanced in what they offer traders.
But the fact that MetaTrader 5 is a significant upgrade from MetaTrader 4 cannot be ignored and thus it is necessary to compare these two platforms side by side to get a clearer understanding of the improvements brought on though MetaTrader 5.
The key difference between the two trading platforms are as follows:
- MetaTrader 4 is a Forex trading platform whereas MetaTrader 5 allows for trading in other markets with more having been added in recent years
- MetaTrader 5 provided 21 timeframes in which charts can be viewed whereas MetaTrader 4 only offers 9
- There is a difference in the amount of indicators and tools provided with MetaTrader 4 offering 30 indicators and 24 analytical tools and MetaTrader 5 offering 38 indicators and 44 analytical tools
- MQL5 is being used more as MQL4 is being phased out
- MetaTrader 4 does not provide an economic calendar whereas MetaTrader 5 provides one on the platform itself
- Lack of backward capability with MQL4 codes that can be moved to MQL5, but it proves to be costly and time consuming
When taking these key differences into consideration and how efforts are being made to improve and develop MetaTrader 5 further, traders are left to wonder whether the same will happen when MetaTrader 6 is launched.
Although both trading platforms are comprehensive and powerful, traders may wonder what additional functions and features MetaTrader 6 will have that is not already covered in MetaTrader 5.
MetaQuotes has made quite a few adaptions to the MetaTrader 5 trading platform recently in addition to announcing other ventures which include:
- The integration with Python which supports Market and Signal services in Wine in addition to a highly optimized strategy tester in MetaTrader 5 build 2085
- GBE Brokers announcing the launch of MetaTrader 5 with the option of hedging
- LegacyFX offering MetaTrader 5 to traders
- MetaTrader 5 Web and mobile applications being launched by FIBO Group
- MetaTrader 5 users who have accounts with Admiral Markets having access to new index and commodity derivatives, and more
There are various updates that are still being done on MetaTrader 5 which shows that the trading platform still has a lot of potential for more in addition to more collaboration with some of the best brokers around the globe.
Conclusion
Whether there is no current information that supports the idea that there is indeed a MetaTrader 6 in its development phase, MetaQuotes have focussed its efforts into ensuring that MetaTrader 5 caters for any and all broker and trader needs.
MetaTrader 5 is superior to MetaTrader 4 in various ways, although MetaTrader 4 still holds the title of the most popular Forex trading platform amongst brokers and traders. But there is always the possibility that MetaTrader 4’s software development cycle may end.
There are numerous factors to consider with regards to upgrading to newer versions of software and use of MetaTrader 4 may be based on professional and personal preference of brokers and traders alike.
Unfortunately, support for MetaTrader 4 may be limited more to ease traders and brokers into transitioning from MetaTrader 4 to MetaTrader 5 and this can already be seen with traders having to use MQL5 instead of MQL4.
Whether MetaQuotes decides to keep the current trading platforms, move over only to offering MetaTrader 5, or release MetaTrader 6, clientele can be assured of a comprehensive and advanced offering paired with excellent service.
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