MetaTrader- The MT4 and The MT5
MetaTrader is one of the most preferred platforms used by FOREX traders. The platform not just helps in easy trading, it is also of great assistance when it comes to auxiliary activities such as charting, market monitoring and analysis, automated trades, etc. As of now, MetaTrader is available in two versions in the market - MT4 and MT5. To help in smooth and effective functioning, there are a number of web-services available that are a suitable fit for integrations related to both these versions. These services are MT4 Manager JSON API and MT5 Manager JSON API.
Now, many forex brokers and traders make use of MT4 and MT5 in trading. However, very few will be able to tell you the key differences between the two versions. We have tried to list out a few differences, factors that might influence your purchase, on the basis of interface, the programming language used in both the versions, pending order feature, etc.
Interface
The MT4 version makes use of a simple interface that is easy to use and allows its users (traders, brokers, etc) to customize the trading platforms interface as per their specific needs and requirements. However, since it’s an earlier version, there are obviously some added advantages to MT5 which is comparatively new.
The MT5 is a package of all that is already present in MT4 and much more. MT5 has a number of new options when it comes to its interface such as trade stocks and trade futures options.
TimeFrame
Another one of the many important features of a MetaTrader, the timeframe is an analysis of the duration that a trend stays on in the market. This time frame is used to then further study the mood of the stock market.
Now, MT4 (the earlier version) has only a bundle of nine timeframes in its feature. However, this number is increased to 2 when it comes to MT5. The routines and results of this process can be studied with the help of the MT4 Manager JSON API and MT5 Manager JSON API, respectively.
Programming Language
A programming language is used to create trading robots and FMIs (financial market indicators). The programming language that a MetaTrader mostly makes use of is the MQL, i.e., Meta Quotes Language. Now, depending upon the version, MQL4 is used with MT4 while MQL5 is used with MT5.
The basic difference between a MQL4 and MQL5 is that the use of the former can be majorly found in creating trading programs on the basis of an order system, as for the latter, it is used to develop a positional system. While the MQL4 is known to be an easy-to-use programming language, the MQL5 is a better version since it even allows the traders and brokers to write, re-write and alter the programming scripts thereby providing a better go at customizing the platform.
The Pending Order
Simply speaking, a pending order is an order or instruction to the trader or broker to buy or sell the security at a fixed price in the future market. It is, therefore, a contingent order.
Pending order, in general, is of four types- Buy stop, Buy Limit, Sell Stop, and Sell Limit- all of which are available in the MT4 version. The MT5 version, however, has two additional pending orders- the Buy Stop-Limit and the Sell Stop-Limit.
Hence, even when both the versions of the MetaTrader are similar, MT5 is the upgraded version while MT4 remains the preferred version of the trading platform. Similar are the features of and differences between the MT4 Manager JSON API and MT5 Manager JSON API.
