The main trading tools currently used by Forex companies are MT4 and MT5. Both are great tools, but which one is better? Many people think that. This article is for beginners who want to start trading.
How to download and install MT4 and MT5
Please refer to the following article for information on how to download and set up MT4 and MT5. Charts, EA, contract speed, etc. are different for each person. Whether you use a smartphone or PC at a securities company, there are pros and cons to each recommendation. How you use it varies from person to person, and it also depends on how you use it, such as analyzing currency pairs. Currently, there is no difference in the details of the standard specifications such as spreads and leverage. Choose the one that you think will be advantageous in the future. Support is also provided in Japan. Choose the one that is most likely to give you a profit in some cases.
What is MT4?
MT4 is an abbreviation for Meta Trader4. It is a trading tool developed by MetaQuotes Software and used by traders all over the world. This tool can be used as an automatic trading platform, can be freely customized by the user, and has a very rich chart function and a very rich indicator function.
What is MT5?
MT5 is an abbreviation for Meta Trader4. It is a trading tool developed by MetaQuotes Software and used by traders all over the world. Since it has fewer indicators than MT4 and is a new tool, there are many Forex companies that do not support it, but the time axis and operation speed that can be displayed are much higher than MT4.
Performance comparison between MT4 and MT5
The crucial difference between MT4 and MT5 performance is the time frame. MT4 has 9 types (1 minute, 5 minutes, 15 minutes, 4 hours, 12 hours, 24 hours, daily, weekly, monthly), while MT5 has 21 types (4 minutes, 6 minutes, 10 minutes, 12 minutes, 20 minutes, 3 hours, 6 hours), allowing you to see a lot of detail. MT5 has more detailed charts drawn on the screen, giving you an advantage in the market in all aspects of buying, selling, and execution. MT5 is for those who draw lines for analysis, those who want to make profits from products, and those who want to improve the quality of their methods. Metatrader has one purpose and different uses, so it depends on how you use it.
| MT4 | MT5 | |
| release | 2005 | 2010 |
| operating speed | usually | fast |
| 時間足 | 9 | 21 |
| chart type | 3 | 3 |
| memory usage | few | many |
| One-click order | Possible | Possible |
| strategy tester | Possible | Possible |
| Types of custom indicators | abundance | abundance |
| Type of EA | many | few |
| Response status of FX companies | all | few |
| update | none | many |
| programming language | MQL4 | MQL5 |
| Developmental status | end | Ongoing |
operating speed
MT5 has an overwhelming advantage in terms of operating speed. MT5 is an evolved version of MT4, so it is obviously faster. It has the characteristic of accelerating reaction speed by using memory effectively. MT4 is a 32-bit program, while MT5 runs as a 64-bit program. Also, for those who want to use EA, MT4 is good because it allows backtesting. We do not recommend automated trading as a foundation for investment, but for those who want to trade stocks conveniently with a system, MT4 is the way to go.
timeframe display
In MT5, 12 more minute and hourly bars are added compared to MT4. MT4 has 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, weekly and monthly. However, MT5 is further subdivided. 2 hours, 8 hours, etc. are added.
Response status of FX companies
MT5 is only about 10 years old, and old Forex companies still do not support it. However, most of the world’s leading companies such as HF Markets have already responded. MT4 is probably already supported by Forex companies around the world.
number of indicators
Both MT4 and MT5 come equipped with indicators that can be used for technical analysis. They are equipped with the same amount of indicators, so it doesn’t matter which one you choose. The bottom line is that whether the price is low or high, the important thing is how you can make a profit using these indicators. The key is to use a wide range of important indicators and use them in accordance with the indicators. Analysis is the main way for investors to win in finance in the long term. Let’s introduce attractive ones for each category.
memory consumption
Memory consumption is also different between MT4 and MT5. If you run multiple MT5s, the memory consumption will increase significantly, so be careful. MT4 consumes very little memory. Of course, if you mainly enter from external smartphone apps, MT4 is good, but if you are using a PC, MT5 is recommended. It depends on which you prioritize as the main focus of your operations. Currently, you should decide based on how you use the target software at the exchange. Be careful, as some markets have high trends due to economic indicators.
update frequency
Unfortunately MT5 wins out in terms of frequency of updates. MT4 has no update itself. MT4 has not been updated since October 14, 2021. This is because the development itself has ended. MT5 has been continuously updated and is still under development.
not compatible
From here it becomes a problem of MT4 and MT5, but both are not compatible. MT4 is MQL4, MT5 is MQL5 and different programming languages are used. Therefore, it is not possible to migrate the environment used in MT4 to MT5 as it is. The same is true for the reverse pattern. When using MT4 or MT5, you need to open a dedicated account each.
Developer shifted to MT5
The company developing it is MetaQuotes, but MetaQuotes no longer focuses on MT4. MT4 has not been updated once since May 2021, but MT5 has been updated 9 times in 2021 and the same number or more in 2022. MetaQuotes has also declared the end of development of MT4, gradually reducing the market share that MT4 monopolizes and encouraging the transition to MT5.
There is no big difference in the smartphone version.
There is actually no difference between the smartphone versions of MT4 and MT5. Although MT5 is superior in terms of ordering methods, there is not much difference between the two when you take into consideration things like operability. If you mainly trade using your smartphone, either is OK.
For those who recommend MT4
People who can recommend MT4 are those who play around with custom indicators and those who want to do automatic trading. MT4 has the overwhelming majority of automatic trading functions and tools. There are far more custom indicators on the market for MT4 than for MT5, so traders can choose from many indicators.
For those who recommend MT5
People who recommend MT5 are discretionary traders. What makes discretionary traders happy is that the number of time frames displayed is very large. Also, the basic specs of MT5 are overwhelmingly higher than MT4. Since the operating speed is particularly fast, MT5 is definitely better for short-term traders and traders who mainly engage in scalping trading.
which one is better?
Overall, MT4 has already finished development. It is wise to choose MT5 for those who want to continue to trade. The reality is that MT5 is still under development and its performance is gradually improving. And from now on, MT4 will not be updated, so even if a problem is found, it will not be possible. MT5 is clearly recommended in the long run.
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