12th April, 2024
Mobile trading has become commonplace in recent times, notably so. Thanks to massive advancements in smartphone technology coupled with growing access to 5G wireless speeds, novices and experts alike are taking advantage of all that this exciting world has to offer. This is when the power of a solid investment platform becomes crucial, as some systems rise to the occasion, distinguishing themselves.
MetaTrader is arguably the most well-known trading interface in existence, and countless investors have already leveraged the associated utilities for their financial strategies. Those who are considering a foray into the world of online investing should therefore become familiar with what MetaTrader has to offer, including its extensive tools and analytical capabilities. Let us examine two common iterations, MetaTrader 4 and MetaTrader 5, to better understand which might represent the most logical option for individual trading goals and preferences, thereby making an informed choice.
MetaTrader 4
MetaTrader 4 (sometimes simply abbreviated as MT4) was first released to the general public in 2005, establishing itself early on. It is, therefore, one of the oldest and most trusted platforms in existence, widely recognized for its reliability. The technology associated with MT4 has likewise been adopted across other third-party providers, a clear indication of its widespread influence and the high level of trust it commands within the trading community, reinforcing its legacy.
Most experts agree that the MetaTrade 4 mobile and its browser-based counterpart tend to be suited for novices and those with little prior investment experience. This is due to the decidedly user-friendly nature of its tools and utilities. Here are some of the functions supported by MetaTrader 4:
- A customisable interface.
- Access to the global MetaTrader investment community.
- The ability to tap into professional insight.
- Users can back-test previous trading strategies in order to learn from their mistakes.
- More than 30 technical indicators.
- Automated trade executions.
- Advanced charting options.
Note that the mobile app supports all major operating systems including Android, iOS, Windows, and Linux.
MetaTrader 5
So, what makes MetaTrader 5 different? Although both platforms were engineered by the same developer, MT5 is considered to offer more advanced features that may be better suited for seasoned veterans. Its feature-rich nature not only caters to experienced traders but also provides access to a host of additional underlying assets, including stocks and commodities, a nice benefit for individuals eager to create a more diversified and balanced portfolio, expanding their trading horizons.
The MetaTrader 5 mobile bundle is likewise an excellent option for those who wish to execute on-the-go trades although to be clear, it may require more memory than the MT4 version.
One aspect which sets this newer iteration apart involves the ability to trade asset classes other than standard CFDs and Forex positions. These include stocks, bonds, futures, and commodities. As if such latitude was not sufficient in and of itself, MetaTrader 5 has also put together a kaleidoscope of superior investment tools such as:
- The MGL5 programming language that supports algorithmic trading positions.
- A toolbox that displays all pertinent market information (known as the DOM toolbox).
- A 64-bit strategy tester.
- An intuitive economic calendar
While both MT4 and MT5 employ Secure Sockets Layer (SSL) encryption, MetaTrader 5 leverages a slightly more advanced certificate. This is not to say that MT4 is not secure, but merely meant to point out that those who are extremely concerned about privacy may sometimes opt for MetaTrader 5.
Which is the Best Option?
We now need to address the most logical point. Is MetaTrader 4 or MetaTrader 5 the best option? This will partially depend on what the platform is being used for. There are several reasons why MT5 appeals to investors. Not only is this software capable of offering advanced features as well as access to multiple asset classes, but it could be ideal for individuals who wish to perform more complex back-testing due to advanced algorithmic features. This is once again a massive benefit for users who already appreciate the basics of browser- and mobile-based trading.
However, MetaTrader 4 is still available for download and it can represent an excellent tool when learning the fundamentals of online trading. As the user interface is comparatively simplified, MT4 continues to attract those who have only recently become involved within the virtual investment community. There have nonetheless been rumours regarding whether or not MetaTrader 4 may be eventually phased out in favour of the MT5 platform. These have been neither officially confirmed or denied at the moment.
Ultimately, both systems continue to receive rave reviews from countless budding investors. Note that they are also employed by some of the largest online brokerage firms in existence. Those who wish to learn more are encouraged to perform additional research or to download a demo version of the most relevant bundle.