MetaTrader 4 (MT4) vs. MetaTrader 5 (MT5)

General Overview

• MT4: Launched in 2005, MT4 is predominantly favored by Forex traders for its robust functionality, customizability, and automated trading capabilities through Expert Advisors (EAs). Its straightforward interface makes it ideal for novice traders and its wide acceptance ensures a plethora of custom indicators and scripts.
• MT5: Released in 2010, MT5 is designed as a more powerful and versatile platform capable of handling trading on stocks, commodities, and centralized exchanges in addition to Forex. It offers advanced technical tools, more timeframes, enhanced order types, and supports both hedging and netting systems.

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Technical Capabilities

Charting and Analysis

MT5 offers 21 timeframes versus MT4’s 9, 38 technical indicators compared to MT4’s 30, and 44 graphical objects over MT4’s 31. This allows for more detailed and precise market analysis in MT5.

Algorithmic Trading

Both platforms support automated trading, but MT5 provides a built-in environment for the development and testing of more complex strategies with its MQL5 IDE.

Economic Calendar

MT5 includes an integrated economic calendar offering updates on important economic events directly on the platform, which is not available in MT4.

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Market Access

• Asset Types: MT4 is primarily used for Forex and CFD trading, while MT5 offers an expanded array of asset types including stocks, bonds, and futures, making it suitable for traders looking for diversified investment opportunities.
• Trading Operations: MT5 allows up to 100 charts to be opened simultaneously, a significant advantage for traders monitoring multiple assets, compared to MT4’s limitation to only open a fewer number of charts.

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User Experience

User Interface

MT5 features a more modern interface with additional functionalities such as more levels of market depth and a better system for handling all types of orders, which can be particularly useful for professional traders.

Customization

Both platforms offer extensive customization options for charts and the workspace. However, MT5’s enhanced scripting tools provide greater flexibility for creating custom indicators and automation scripts.

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Execution Speed

• MT4: Known for its high speed and low resource usage, MT4 is optimized for simpler strategies that require rapid order execution, which is essential for day traders and those using high-frequency trading tactics.
• MT5: With its advanced architecture, MT5 can handle more data and process trades faster, which is crucial when dealing with large volumes of trades or complex trading algorithms.

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Suitability for Traders

MT4

Best suited for retail traders focusing on Forex and CFDs who require a simple, effective platform for manual and automated trading.

MT5

Ideal for advanced traders and those dealing with multiple asset classes and needing more comprehensive tools for analysis and trading.

For traders at ACY Securities looking to primarily engage in Forex or CFD trading with the use of automated trading systems, MT4 remains the ideal choice due to its simplicity and extensive support resources. However, for those requiring access to a broader range of financial markets and a more robust trading system, MT5 offers superior features and flexibility, making it the preferable platform for comprehensive trading activities across multiple asset classes.

Selecting between MT4 and MT5 should be based on your specific trading needs, the types of assets you intend to trade, and the complexity of the trading strategies you wish to employ. Both platforms provide robust environments for trading, but the choice depends significantly on personal or strategic requirements.