MT4 is the most popular forex trading platform in the world. In 2010, the company behind MT4 released MT5. However, MT4 remains quite popular even after 10 years. Here is an in-depth comparison of both platforms to help you decide which platform is the best for algorithm trading.
Benefits of Using MT4
Easy to Install
Installing MT4 is faster and easier than installing MT5. This may be because of the lighter requirement for MT4, which came out before MT5. It is quite easy to conduct the initial setup and begin trading.
Compiling Codes is Easier
EA features vary between the MT4 and MT5 platforms. For MT4, it is designed around the MQL code language. Most coders find it easy to compile these codes when compared to other modern languages. However, if you are using Mt4, it is not possible to migrate code to MT5.
The User Interface is Easy to Use
Most people who prefer the MT4 platform prefer it due to ease of use. Various surveys have highlighted this as being a major reason for its popularity. While various feature-rich platforms have come out since then, the simplicity of MT4 has helped it to remain popular.
Aligns to Various Trading Methods
Various features introduced in the latest trading platforms like FIFO do not suit some of the trading styles. Since the MT4 platform remains the only one that supports hedging makes it suitable for certain trading styles.
Popular with Traders and Brokers
Most forex traders love how popular MT4 is. Most forex brokers offer MT4, which is why traders have come to love this platform.
The Benefits of MT5
Better Timeframes and Charting
MT5 comes with 21 timeframes compared to only nine for MT4. The charting options are unlimited and traders can open more than a hundred at a go.
Comes with Fundamental Analysis
The inbuilt MT5 calendar has things like new events, forecasts, schedules, expected impacts and much more. This is great for those who incorporate fundamental analysis in their trading strategy.
MT5 comes with commerce integration, which allows the trader to purchase currency products directly. This feature can be accessed via the market lab.
MT5 has 38 indicators built into it and 22 analytical objects as well as 46 graphical objects. ON the other hand, MT4 has 30 indicators.
Why MT5 is better
The main benefit of the MT5 platform is that traders are not restricted to using the built-in analytical resources. Due to the use of the MQL5 programming language, traders can create their own indicators. With a bit of coding knowledge, traders can create trading robots called Expert Advisors. With several inputs, almost any trading strategy can be automatically executed.
A major reason why MT5 is simply better for algorithm trading is that companies and people adapt over time to change. In 2005, MT4 was released and it introduced algorithm trading. With the growing popularity of automated trading, MT5 was created to help traders optimize the benefits. Today, the programming language offered with MT5 is far superior to what is offered with MT4.