MT4 vs. MT5: Which is better for Algorithmic Trading?
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MT4 is the most popular forex trading platform in the world. In 2010, the company behind MT4 released MT5. However, MT4 is still quite popular after 10 years. So, MT4 vs MT5: which platform is better for algorithmic trading? Let’s find out in the article below.
The benefits of using the MT4 platform
Easy to install
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Installing MT4 is faster and easier than installing MT5. This may be due to the lighter requirement for MT4, which came before MT5. The initial setup and getting used to trading is also quite easy.
Compiling code is easier
MT4 and MT5 platforms have different EA features. As for MT4, it is designed based on the MQL programming language. When compared to other modern languages, most programmers find it easy to compile these codes. However, if you are using MT4, you will not be able to transcode to MT5.
The user interface is easy to use
Most people prefer the MT4 platform because MT4 is easy to use. This is also the reason for its popularity. Although various feature-rich platforms have launched since then, MT4’s simplicity has kept it popular with many people.
Suitable for different trading methods
Various features added in the latest trading platforms like FIFO are not suitable for some trading styles. Since the MT4 platform is still the only one that supports hedging, it is suitable for certain trading styles.
Popular with traders and brokers
The strength of MT4 is its popularity with the large number of traders using it. Most forex brokers offer MT4, that’s why traders love the platform.
The benefits of using the MT5 platform
Better timeframes and charts
MT5 offers a larger number of timeframes (21 timeframes compared to 9 timeframes on MT4). The charting options are unlimited and traders can open more than a hundred trades at the same time.
Support Fundamental Analysis
MT5 offers a market calendar that includes new events, forecasts, expected impacts and more, catering to traders looking to incorporate fundamental analysis in their trading strategy.
MT5 comes with trade integration, allowing traders to buy currency products directly. This feature can be accessed through 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.
MT4 vs MT5: Which is better for Algorithmic Trading?
Compared to MT4, MT5 is improved and adds many more features and tools.
The main benefit of using the MT5 platform is that traders are not limited to using the built-in analytical resources. In addition, MT5 uses the MQL5 programming language, so traders can create their own indicators. With a little knowledge of coding, traders can create trading robots called Expert Advisors.
A major reason why MT5 is simply better for algorithmic trading is that companies and people adapt to change over time. In 2005, MT4 was released and it introduced algorithmic trading. With the growing popularity of automated trading, MT5 was created to help traders maximize their profits. Today, the programming languages offered with MT5 are far superior to those offered with MT4.
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