Why use MetaTrader?
When it comes to trading financial markets online, having confidence in the tools you use is crucial to being able to perform at your best. Traders and investors want to know that the platform they use is reliable and fast enough to ensure that their trading experience is an enjoyable one.
And with so many trading platforms on the web, many traders, and especially those new to trading online, struggle to find the best trading platform for their needs. Whether you’re looking into Forex trading, trading Stocks or even trading commodities, you want to know that the platform you’ve chosen meets your needs and offers you the best possible price and no lag or potential downtime.
So, why use MetaTrader? MetaTrader is one of the most popular names in online trading platforms and is used by beginners, experienced traders and professionals alike. Originally launched with the MetaTrader 4 (sometimes called MT4) platform in 2005, the MetaTrader platforms have gone from strength to strength ever since.
There is now a MetaTrader 5 (MT5) platform too, as well as mobile apps as part of the platform offering but the essentials that have made the name synonymous with trading online have remained the same. Traders primarily choose the MT4 or MT5 platform for:
- Reliability – Both platforms are reliable and easy to use and have a strong track record of success.
- Intuitive – Both platforms are intuitive and designed in a way that makes executing trades simple and efficient.
- Flexible – Both MT4 and MT5 are incredibly flexible and allow traders to execute advanced trading strategies, trade directly from charts and view extended timeframes
- Powerful Tools – The MetaTrader platforms come with interactive charts, advanced technical indicators, pre-built trading strategies, trading alerts, stop orders and more.
It is easy to see why plenty of traders around the world choose MetaTrader as their go-to platform. With both MT4 and MT5 supporting mobile trading on any device, they allow traders to stay on top of market movement and intelligently manage their positions in response to increased volatility.
With Stop Loss and Market Orders available too, the MetaTrader platforms offer risk management tools for responsible trading to ensure investors and traders close out their position at a set price if the market moves against them.
What is the difference between MT4 and MT5 and which is better?
We’ve seen a little of what makes the MetaTrader 4 and MetaTrader 5 platforms so popular with investors and online traders but what about the differences, and do these impact the actual trading experience? Let’s have a look at each platform’s features and differences.
MetaTrader 4 Features
MetaTrader 4 is the original MetaTrader platform, and while it has undergone updates since its launch, it remains reassuringly familiar. MT4 offers traders both market and pending order functionality as well as instant execution on trades.
Whether your purpose is Forex trading, trading Stocks or trading Commodities, you can trade directly from charts for greater clarity and responsiveness. The platform also offers key risk management tools like stop loss orders and trailing stops.
One of the more popular features of MetaTrader 4 is the ability to see a complete trading history, and this is a valuable tool in helping you refine your long term trading strategy. It is incredibly useful to see where and how your trades succeed or fail, and every responsible trader should be managing their performance and accessing their level of risk by keeping a close eye on their trading history.
MT4 is packed with technical tools to help analyse the markets too. Traders can get online quotes and view market movement over 9 periods to track price changes. With 23 analytical objects and 30 built-in technical indicators, traders and investors that use MetaTrader4 can quickly and easily view key price points and respond to both trading opportunities as they develop, and potential spikes in volatility which could increase risk.
MetaTrader4 also offers trading signals and algorithmic trading functionality for more experienced traders. Finally, MT4 is available on all mobile devices too, allowing traders to keep an eye on market movement whenever they want, and wherever they happen to travel.
MetaTrader 4 summary:
- 3 execution modes
- 2 market orders
- 4 pending orders
- 2 stop orders and a trailing stop
- 23 analytical objects
- 30 built-in technical indicators
- Interactive charts
- Trading signals and algorithmic trading
- Available on all mobile devices
MetaTrader 5 Features
MetaTrader 5 is the more advanced MetaTrader platform and markets itself as “a platform for Forex and Exchange markets.” This makes sense as the Meta platforms have always been highly popular with FX traders in particular, with their strong charting package and instant execution functionality.
While MetaTrader 5 is very popular with FX traders, it still offers a wide range of multi-asset class instruments and traders can choose from Indices, Commodities, Stocks and FX. MetaTrader 5 comes packed with more advanced features and suits professional and experienced traders well with its Market Depth and separate accounting system providing flexibility and speed.
MT5 supports every type of trade order imaginable with market, pending, stops and trailing stops all available. There are also four order execution options to support a wide range of trading strategies and these include Instant, Request, Market and Exchange execution.
The platform offers daily news and analysis of financial markets to help keep traders informed and identify trading opportunities. And with 30 technical indicators and 24 analytical objects including Gann, Fibonacci and Elliott tools, technical traders will have the powerful tools they need to track and trade on price movement.
Traders can trade directly from charts in MT5 with 9 timeframes available and three different chart types, including bars, Japanese candlesticks and broken line.
Like with MT4, traders get a full, comprehensive trading history to help build and develop their trading strategy while tracking performance.
As the more advanced trading platform, MT5 also offers complex automated and algorithmic trading as well as robot trading and access to the MetaTrader Market of trading apps. Traders can also make use of the professional MQL5 development environment for a more personalised trading experience.
MetaTrader 5 is available to download on desktop and Mac and is available across all mobile devices including iPad, iPhone and Android phone.
MetaTrader 5 summary:
- Interactive real-time price charts
- 30 popular technical indicators
- 24 analytical objects
- Tools like lines, channels, geometric shapes, as well as Gann, Fibonacci and Elliott tools
- 9 timeframes: M1, M5, M15, M30, H1, H4, D1, W1 and MN
- 3 types of charts including bars, Japanese candlesticks and broken line
- Full trading history
- Market, pending, stop losses and trailing stops all available
- 4 order execution options: Instant, Request, Market and Exchange execution
- Algorithmic trading and robot trading
- Professional MQL5 development environment
- MetaTrader Market of trading apps
- Available on mobile, iPad, iPhone, Android phone and tablet
MT4 vs MT5 Pros & Cons
Choosing between MT4 and MT5 largely depends on what you’re looking for in a trading platform, and how experienced you are. Both platforms are exceptionably capable and offer a wide range of trading tools to help support your chosen trading strategy.
The type of traders who may choose MT4 likely prefer its relative simplicity vs MT5 and the ability to trade directly from charts without clutter or information overkill. The market orders, risk tools, analytical objects and technical indicators offer technical traders solid tools for trading just about any market.
The platform doesn’t really have any negatives with everything in its correct place, instant execution for fast trades and an intuitive interface that makes everything from finding the right market to placing a trade simple and easy.
The type of traders who may feel MetaTrader 5 meets their needs better are likely the more experienced traders and/or professional traders. MT5 is built as a more advanced option with 9 timeframes, 3 types of charts, the professional MQL5 development environment and access to MetaTrader apps.
Instant, Request, Market and Exchange execution options offer pro traders greater flexibility in defining their trading strategy and with algorithmic trading and robot trading available there are plenty of options to trade intelligently.
MetraTrader5 has few cons but it is worth bearing in mind that the platform has been built for experienced traders and those newer to the markets may feel overwhelmed by the functionality on offer. The type of professional tools available in MT5 take a great deal of experience to master and if you’re a newer trader, MetaTrader 4 may be the better option.
Is there a better platform for trading?
As we’ve seen, the choice of trading platform is largely subjective and is often personal to a trader based on their likes, the type of market they trade and the functionality they refer and expect.
Both MetaTrader 4 and MetaTrader 5 offer superb functionality and capabilities that will support both new and experienced traders to trade with confidence.
Eightcap offers both MetaTrader 4 and MetaTrader 5 as well as EightCap WebTrader which comes packed with similar functionality and an outstanding charting package. For traders who enjoy trading via a web browser for easy access this may also be a strong option.
MetaTrader 4 and MetaTrader 5 are amongst the most popular and reliable trading platforms available online. With a wide range of features, risk protection tools and mobile functionality, they give traders the foundation and support they require to trade intelligently.
For newer traders, MT4 may be the best option with its intuitive interface and easy to use tools. The charting package available is also excellent and the uncluttered interface helps newer traders to focus on both market movement and technical price points of interest without distraction.
More experienced and professional traders are likely better off choosing MetaTrader 5 with its more advanced functionality and powerful charting package that offers a huge array of technical indicators and tools like Gann, Fibonacci and Elliott.
Both platforms are available on mobile for ease of use and this allows traders to stay in touch with the markets and monitor their positions whenever and wherever they want.
Where can I trade on MT4 and MT5?
You can trade on both MetaTrader 4 and MetaTrader 5 with a CFD trading account at Eightcap. Download the software or the app and use your account details to log in.
Can I trade MetaTrader 4 and MetaTrader 5 on mobile?
Yes – both MT4 and MT5 are available on mobile and you can download either app on Android or iOS and trade on both mobile and tablet.
I’m new to trading, which platform will suit me best?
If you’re newer to trading online, you may find that MetaTrader 4 suits you better. MT4 is a powerful trading platform but comes without the professional capabilities of MT5.
Does MT4 have a charting package?
Yes, MT4 comes with a strong charting package that features a wide range of technical indicators, trade direct from chart functionality and analytical objects to help ensure accurate, technical trading.
Is MetaTrader 5 a professional trading platform?
Yes – MT5 has been built for more experienced and professional traders and comes with trading capabilities and tools designed for more complex trading strategies. While newer traders can still use MT5, they may find some of the functionality overwhelming.
Do the MetaTrader platforms have risk protection tools?
Yes – both MT4 and MT4 trading platforms have stop loss protection and trailing stop loss protection available. These tools are an important part of a responsible trading strategy and can be used to limit losses if the market moves against you suddenly.
Does MetaTrader 4 have technical tools?
Yes – MetaTrader 4 has a total of 23 analytical objects as well as 30 built-in technical indicators.
Learn more about trading CFDs on MetaTrader 4 or MetaTrader 5 in our Education Hub, or subscribe to Eightcap’s Week Ahead Newsletter for more trading insights, analysis and news. Or visit Eightcap’s platform pages for a full breakdown of platform functionality.