A firm favourite among traders of all ages, Metatrader 4 now feels like it is part of the furniture when it comes to trading, with most traders using it as a rite of passage of sorts, using it as a base to start their trading career. However, as it was launched in 2005, the software is starting to become a little outdated. MetaQuotes, the company who originally launched Metatrader4 launched Metatrader 5 in 2010 but, with uptake slow and teething problems rampant, many traders didn’t switch. But, is now the time? Here, we aim to look at which platform is right for you by showing you the differences between the two:
Accessibility and Chart Readability
One of the main complaints about Metatrader 4 was the fact that it was quite difficult to navigate for new traders. As a direct response to this, MetaQuotes made Metatrader 5’s buttons are much larger, and well spaced out. Of course, this comes at a cost, and it makes the charting area considerably smaller and, if you’re an experienced trader, this can be quite annoying if you’re trying to analyse charts in great detail.
Despite this, the way that the platforms display charts is largely unchanged, with Metatrader 5 still showing charts in M1, M5, M15, M30, H1, H4, D1, W1 and MN time frames, offering great variety for the user. As well as this, however, Metatrader 5 has added to the charting on Metatrader 4, offering intermediate time frames, thus allowing traders to use a wider range of time frames when trading.
The largest change in Metatrader 5 comes from the Account Navigator window which hallows traders to switch between accounts easily, something that was always a bugbear with advanced traders who used Metatrader 4.
The wide array of indicators was one of the main draws of Metatrader 4, and you’ll be hard pressed to find a review online that bemoans the range on offer. By allowing custom indicators to be created, Metatrader 4 very much broke the boundaries, but Metatrader 5 has now gone one step further, introducing a number of new trend indicators. These include:
- Variable Index Dynamic Average,
- Fractal Adaptive Moving Average
- Adaptive Moving Average
- Double and Triple Exponential Moving Averages.
All of these mean that Metatrader 5 allows a greater number of trading strategies to be adopted.
Although there are some ways in which the technology behind Metatrader 5 vastly outstrips Metatrader 4, there are still some ways that Metatrader 4 remains superior, and one of these is hedging. Of course, as you’d expect, you can use plug-ins, but these once more over complicate the system, and it remains much clearer in Metatrader 4, something that has led many traders to stay with the platform despite its flaws.
To conclude, in some areas Metatrader 5 may outstrip its predecessor, but Metatrader 4 still has its merits. If you’re thinking about changing accounts, visit an online trading company broker who offers both accounts and do a trial. This way, you can try before you buy and ensure you’re happy with the platform of your choice.