MT4 has been the go-to trading platform for millions of traders worldwide. Then MT5 came along, promising better features and improved functionality. The question remains: should you make the switch?
Many traders stick with what they know, and there’s nothing wrong with that. MT4 works perfectly fine for most trading strategies. However, MT5 offers several enhancements that might make your trading experience smoother and more efficient.
Let’s explore five key considerations that can help you decide whether upgrading makes sense for your trading style.
Architecture and Speed
MT5 runs on a completely rebuilt foundation. This newer architecture processes trades faster and handles multiple tasks simultaneously without slowing down your system.
Think of it like upgrading from an older computer to a newer model. The basic functions remain the same, but everything runs more smoothly. MT5 can execute orders quicker, load charts faster, and switch between different timeframes without the occasional lag you might experience with MT4.
The improved performance becomes especially noticeable when you’re running multiple charts or using several indicators at once. Your trading platform stays responsive even during busy market hours when you need it most.
Programming Language
Expert Advisors and custom indicators run on different programming languages in each platform. MT4 uses MQL4, while MetaTrader 5 operates on MQL5. MQL5 offers more advanced programming capabilities, allowing developers to create more sophisticated trading robots and indicators.
The language supports object-oriented programming, making it easier to build complex trading systems. However, this also means your existing MT4 Expert Advisors won’t work on MT5 without modification or complete rewriting.
If you rely heavily on custom indicators or automated trading systems built for MT4, this compatibility issue might influence your decision.
Order Types and Trading Options
MT4 offers the standard order types that most traders use regularly. MT5 expands this selection significantly, giving you more ways to enter and exit trades.
You get additional pending order types like Buy Stop Limit and Sell Stop Limit orders. These options provide more precise control over your entry points, especially useful when you want to catch breakouts or enter positions at specific price levels.
The platform also supports more complex trading strategies that require multiple order types working together. This flexibility can be particularly valuable for traders who use sophisticated entry and exit techniques.
Economic Calendar and News Integration
MT5 integrates an economic calendar directly into the platform. You can see upcoming economic events, their expected impact, and historical data without opening a separate browser or application.
The news feed keeps you updated on market-moving events throughout your trading session. This real-time information helps you stay aware of fundamental factors that might affect your trades.
Having these tools built into your trading platform saves time and keeps you focused on your charts rather than switching between multiple applications.
Hedging vs Netting
This difference affects how the platform handles multiple positions in the same currency pair. MT4 allows hedging, meaning you can hold both long and short positions in the same pair simultaneously.
MT5 uses a netting system that combines all positions in the same instrument into one net position. If you buy one lot of EUR/USD and then sell one lot, your net position becomes zero rather than holding two opposite positions.
The netting system aligns with regulations in certain jurisdictions and can simplify position management. However, traders who use hedging strategies as part of their trading plan might find this limitation restrictive.
