In the past few years, India has emerged as an economic powerhouse, with trade ventures fueling its economic dominance. This is evident in the 50% increase in initial public offerings (IPOs) by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in the second quarter of 2023. These IPOs are privately owned companies that go public, which then allows traders to purchase assets.
In light of these exciting developments, it’s unsurprising why individuals want to make trading their full-time career. However, when transitioning from casual trading to the professional area, you need to consider the tools in your arsenal. As such, trading platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are possible options for you since both of these provide access to virtually any financial market you want to focus on. With that in mind, each of these has its own special niche and other nuances that will make your full-time trading life a breeze, which one of these is better?
What is MetaTrader4?
Developed in 2005 by MetaQuotes and licensed for brokers and those with investment services, MetaTrader 4 comes with a variety of tools like flexible trading systems, algorithmic trading, mobile trading, and it provides investment opportunities for traders of all skill levels to participate in numerous financial markets. These include foreign exchange (forex), metals, cryptocurrencies, and other stocks, which makes the platform ideal for full-time trading.
MT4 also comes with pre-installed Expert Advisors (EAs), trading robots and technical indicators programmed by other traders, which you can install into the platform. You can also create your scripts and trading robots with MetaQuotes Language 4 (MQL4), a programming language.
With MT4’s automated trading capability, it’s essential to understand the algorithms behind these. An in-depth article by the Economic Times mentions that algo trading consists of strategies coded on detailed languages such as Python, C++, and Pine. These assist you in monitoring assets and executing your specific trading orders without the need to stay glued to the screen. In addition, you don’t need to worry about complicated programming jargon to operate algo programs since most of them consist of drag-and-drop mechanics.
Overall, algo programs help you execute proper trading strategies with less stress, anxiety, and bias that negatively influence the outcome.
What is MetaTrader 5?
Launched in 2010 by MetaQuotes, MT5 is a web-based trading platform created to help forex and stock traders automate their trades on the web along with algorithmic trading, mobile trading, and technical analysis. In addition, MT5 has more than 200 trading instruments, six asset classes, a built-in forex calendar, and eight pending order types. There are also 21 timeframes and three different chart types that will give you a deeper analysis of your favourite assets.
The program also features a hedging system that allows you to open multiple positions for a single trading instrument. You can also program your trading language with MQL5 with “black box” programming, making it easier to program your trading robots and expert advisors.
In some cases, artificial intelligence (AI) programs like ChatGPT can be used to program trading robots and to execute trade strategies. Although you may find this strategy helpful, remember that AI produces vague and recycled content lacking essential context. Its knowledge bank is also limited to September 2021, meaning it can’t process newer information to optimise your trading robots. Overall, try to trust your instincts and use AI tools sparingly. MT5 already has a lot of helpful features for full-time trading.
Comparing MT4 and MT5
To summarise, MT4 and MT5 function quite similarly since they both trade currency pairs and multiple financial instruments through contract for differences (CFDs). The key differences involve their range of abilities. For instance, MT4 has 31 graphical objects you can use, while MT5 has 44. Regarding timeframes, MT4 offers only nine, while MT5 provides 21 to give you an advantage for deep analysis regarding your favourite assets. In addition, MT4 has no built-in economic calendar when compared to MT5.
With all these mentioned, if you notice that MT5 can do more tasks than MT4, then you’re correct. But MT4 is still the most popular trading platform for a reason, mainly because of its tried and tested user-friendly interface. This is ideal for those who want to stick to the basics of trade or who aren’t as tech-savvy. With that mentioned, if you’re looking to start small and then slowly build your investment portfolio, MT4 is the way to go. And if you’re looking for more advanced metrics and data analysis tools, go for MT5.