Many traders want to know if the MT5 trading platform is a whole new version of this popular trading software, or whether the MT5 is merely a re-invented MT4 with a few tweaks here and there. Forex brokers are slowly starting to expand into offering the MT5 trading platform for their traders. While most of the forex brokers for now are currently offering MT5 demo accounts, the migration to the MT5 live accounts will happen sooner than later.
Off the bat, MT5 platform boasts of some great new features such as offering depth of market, flexible chart time frames and much more. The only flipside with the MT5 trading platform is the non compatibility with MQL4 language. This means that just about every other forex indicator, robots, EA’s must have to be re-written into the new MQL5 language in order to support the MT5 platform.
This article will aim to compare the differences between MT4 and Mt5 trading platforms. Read this article about the MT5 Forex trading platform review.
Compatibility between MT4 and MT5
The MT4 platform provides traders the opportunity to trade using their own custom tools in the form of custom indicators and expert advisors. These software are coded using Metaquotes Language (MQL). However, numerous changes have been made to the coding editor to enhance the coding experience and permit development of newer and more advanced trading tools, as well as to improve execution speed. However laudable this may be, it has come at a compatibility cost. The difference between MT and MT5 is that the MQL4 and MQL5 are not mutually compatible. As such, all indicators and expert advisors coded with the MQL4 will have to re-written using MQL5.
Order Management on MT5 Platform
On the MT4 trading platform, it was possible for traders to keep multiple positions on the same currency, as well as contrarian positions on the same currency pair. The difference between MT4 and MT5 trading platform being all that is now out of the window. Traders will only be able to hold ONE position per currency pair. So if you decide to hold multiple positions (e.g. open 1 Lot trade on EURUSD in the morning, and add 0.5 lots of EURUSD in the afternoon), all positions will be added up to give one total position per currency pair. So for our example, the trader will see 1.5 Lots on his position tab. This corresponds with the National Futures Association first-in, first-out rule. In addition, contrarian positions on the same currency (opening both Buy and Sell on the same pair) is not allowed; the total positions will even out to zero.
Using Expert Advisors on MT5
From what we have discussed above, all expert advisors coded with the Metaquotes programming language of the MT4 platform will cease to work on MT5. They will need to be re-programmed/re-written using the MQL 5 programming language. Once re-programming is done, traders will be able to use their experts and indicators just like before.
Improved Flexibility of Charts on MT5 Platform
Another major difference between the MT4 and the MT5 platform has been the introduction of more flexibility in periodicity charts. Rather than the conventional time frames seen on MT4, MT5 allows more time frames. Now traders can look at charts at 2hrs, 3hrs, 6 mins, 10mins, 20 mins, etc.
Trader Usage – MT5 Trading Platform
If you live in the US, then your broker will have to migrate to MT5 in accordance with the NFA rules. If you are in the rest of the world, your broker will allow you the choice of the conventional MT4 or the newer MT5. Whichever one you choose, just remember that it is your trading skill that will ultimately deliver profits and not really your choice of platform, though one cannot rule out that user-friendly platforms may make it easier to trade successfully.