Is Metatrader 5 superior to Metatrader 4?
The most important thing for deciding whether MT4 or MT5 is more appropriate is to analyze the differences in their characteristics. At first glance, we might think that MT5 is superior to MT4 because it is the evolution of this, but the reality is that it depends on our needs.
MT4 was released in 2005 and quickly became one of the most popular platforms in the world for its simplicity of use and its adaptability to any type of investment while MT5 was released in 2010. MT5 is not a direct evolution of MT4, but an alternative, since it was designed with more options and characteristics, which makes it more complete, but at the same time more appropriate to operate in markets beyond Forex.
Should Metatrader 4 use?
If you are reading this review, you probably want to obtain more information about the characteristics of the Metatrader 4 platform or if you must decide to use this platform or other trading platform.
As almost all Forex/CFDs brokers offer Metatrader 4 today, it is a usual decision that new traders face. Of course, it is impossible to say that Metatrader 4 is better or worse than other options, since it depends on the available alternatives and the alternative is often an exclusive negotiation platform of the Forex/CFD broker with which it is considering registering. Without knowing what its specific alternative is, no comparison or qualification can be offered.
It is fair to say that new traders often care too much about the negotiation platform to choose from. This is partly due to the fact that too many brokers do a big business with negotiation platforms to hide the fact that they offer Spreads, Overnight Commissions and poor services for their customers. The more frequently it operates, the more important its negotiation platform will be: if it operates once a day or once a week, rapid execution and navigation become almost irrelevant. It is important to understand that a trading platform will not help you become a better or more profitable trader. The most important considerations are whether a platform is easy to understand and use and if it works efficiently without errors, it has technical problems or any type of falls, which can be expensive and frustrating in trading. There is very little room for execution errors in trading. Most traders probably accept that Metatrader 4 exceeds these tests. Let’s continue seeing the pros and cons of using the Metatrader 4 platform.
All about Metatrader 4
Starting in Forex can be a complex process. A beginner can take up to a year and a half of training, mentoring and practice to achieve a certain level of success as an operator. At that time, many flight hours are invested in demonstration accounts to learn how to operate properly in the market while studying and assimilating how much information they can find in the market.
In addition to all this, they must begin to specialize in certain platforms that allow them to do operations and have analysis tools. This entails another learning process that must be considered. Of all the Metatrader 4 trading platforms it is still one of the most popular. With broad tools for professionals and really accessible to rookies, it is one of the most friendly platforms at the disposal of all trader. Like the choice of the platform, let’s not forget the importance of selecting a broker with reputation since at present the amount of scams that are associated with investments seems to increase.
What does Metatrader 4 special?
One of the first reasons that boost the use of the Metatrader 4 platform is that all market brockers offer it within its trading platform offer. Therefore, regardless of the brocker you choose you can have this platform available. Additionally, you can operate a demo account within it, to learn what you should do without putting real money at risk. For this reason, many beginners learn to dominate this platform and consequently end up choosing it as its favorite weapon.
In addition to that, MT4, has certain characteristics that make it an ideal platform for better beginners in their trading skills.
What is Metatrader 4 and how is it used?
Metatrader 4 (MT4) is a famous online trading platform that you can use to automate your trading. Its user interface is simple and offers you access to an advanced technical analysis and flexible trading systems. Here you can find a manual that teaches you what Metatrader 4 is and how to use it.
Metatrader 5 Types of orders
As mentioned above, you can operate with your favorite assets using 2 types of orders: market order and pending order.
- A market order is an order to buy or sell an asset at the current price. The order will be executed in real time.
- On the other hand, an outstanding order is an order to buy or sell an asset at a certain price in the future.
The Avatrade MT5 platform has 6 types of outstanding orders as shown by distorting:
- Buy Stop It is an order to buy an asset at a higher price than the current price, in anticipation that when that price is reached, the trend will continue to rise.
- Sell Stop It is an order to sell an asset at a lower price than the current price, anticipating that when that price is achieved, the trend will continue down.
- Buy Limit (purchase limit) is an order to buy an asset at a lower price than the current price, in anticipation that the price of the asset rises after having reached a certain price.
- Sell Limit (sale limit) is an order to sell an asset at a higher price than the current price, anticipating that the price of the asset will fall after having reached a certain price.
- Buy Stop Limit It is a combination of Buy Stop and Buy Limit orders designed to eliminate landslides. It establishes a purchase stop limit at a price higher than the current price of the asset and, when a purchase limit order will be placed.
- Sell Stop Limit It is a combination of Sell Stop and Sell Limit orders designed to eliminate landslides. It establishes a sales stop limit at a lower price than the current price and, when it is achieved, a sales limit order will be placed.
If you apply Stop Loss and Take Profit orders, your trading positions will be closed automatically when activated. It can also manually close the positions at any time before these orders are activated.
Market analysis with Metatrader 5
Technical analysis is an important part of the trading of online financial assets. The essence of technical analysis is to identify potential price patterns that may have a probability of manifesting in the future.
MT5 provides an excellent environment for technical analysts to perform exhaustive prices analysis in a wide range of assets. There are 38 technical indicators, 44 graphic objects, 21 time frames, as well as the ability to add unlimited graphics in their commercial space.
The indicators are mathematical tools that help traders better understand the price action. The indicators apply automatically in the MT5 tables and, for their comfort, they have classified into several groups according to their application. These groups include:
- Bill William tools
- Personalized indicators.
On the other hand, graphic objects apply manually and include tools, such as geometric shapes, channels, Gann, Fibonacci tools and Elliot tools. There is also the option to add your own custom tools on the MT5 platform.
- Fundamental analysis in MT5
Apart from the technical analysis, there is also the fundamental analysis which is responsible for studying how several economic, social and political factors impact the supply and demand forces of any underlying asset. Performing fundamental analysis in real time is now easier than ever on the Metatrader 5.