What is MetaTrader?
MetaTrader is a trading platform developed by MetaQuotes Software for forex (FX) and CFD trading. It provides traders with various tools and features to enhance their trading efficiency and effectiveness.
Overview and History of MetaTrader
MetaTrader was first released in 2005 and has since gained widespread popularity among traders. The most widely used version is MetaTrader 4 (MT4), which is especially popular among individual traders. In 2010, MetaTrader 5 (MT5) was released, offering more features while continuing the success of MT4.
Differences between MT4 and MT5
- Programming Language:
- MT4: Uses MQL4 (MetaQuotes Language 4).
- MT5: Uses MQL5 (MetaQuotes Language 5), which allows for more advanced and powerful programming.
- Types of Trading Instruments:
- MT4: Primarily focused on forex trading.
- MT5: Supports a wider range of financial instruments, including stocks, commodities, and futures.
- Order Types:
- MT4: Supports 4 types of market orders and 2 types of pending orders.
- MT5: Supports 6 types of market orders and 2 types of pending orders, providing more flexibility in trading.
- Backtesting Features:
- MT4: Supports backtesting for single currency pairs only.
- MT5: Supports multi-threaded high-speed backtesting and testing of multiple currency pairs.
Features and Benefits
- MT4:
- User-Friendly: Simple interface, making it easy for beginners.
- Customization: Extensive custom indicators and Expert Advisors (EAs) available.
- Stability: Proven stability over many years with widespread use among traders.
- MT5:
- Multi-Functionality: Supports more trading instruments and flexible trading.
- Advanced Analysis Tools: Offers more indicators and drawing tools for detailed market analysis.
- Fast Backtesting: Enables efficient EA development and testing with multi-threaded backtesting.