In Kenya, cryptocurrency has become very popular in recent years. A UNCTAD digital survey shows that 4.5 million people in the country (or around 8.5% of the population) use this form of currency. Many Africans are interested in cryptocurrencies because of the high inflation rates in their areas. As cryptos aren’t tied to any governing body — which means they’re decentralised — and have a limited supply, they’re considered a good hedge against inflation. Trading cryptos like Bitcoin allow Africans to secure their money from depreciation. Of course, crypto investors need to be savvy and rely on analytical tools to ensure their trades are profitable and effectively hedge against inflation. Trading platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5) can help traders through market developments. In light of this, which platform is the better choice? In today’s article, we’ll compare both:
What is MetaTrader 4?
MetaTrader 4 is one of the most popular online platforms forex traders use, but cryptocurrency traders also tap into this tool. It was developed in 2005 by MetaQuotes, giving millions of users access to financial markets. MT4 can trade assets like forex, indices, and commodities through contracts for differences (CFDs). Despite its “age”, MT4 is still preferred by many due to its customisability and user-friendly interface.
The functions of MT4 include basic windows for managing orders, a history centre for collecting data, and a global variables window that contains charts, expert advisors, training signals, and technical indicators. A virtual private server is included for the uninterrupted operation of MT4’s trading robots. Users can also utilise AI chatbot ChatGPT for MT4. With the program’s advancements, it can use algorithms to analyse complex market information and execute trades based on different criteria. One user even programmed an MT4-compatible trading robot on Chat GPT that uses the MACD indicator. In a test run, they made a 32% return on investment for three months, with a maximum drawdown of only 4%.
As for the drawbacks of using MT4, it’s not immune to minor complaints and issues. For instance, the design can feel outdated next to newer trading platforms. You will also find no multi-currency accounting, which can be an issue if you work with different currencies. MT4 also does not provide fully automated reporting, which can make it challenging to track your progress.
What is MetaTrader 5?
Following the success of MT4, MetaTrader 5 was launched in 2010 by MetaQuotes. Compared to MT4, MT5 provides more currency trading across financial markets. You can maximise the use of this program with its fundamental and technical analysis that incorporates signals and algorithmic trading, thus offering you an arsenal of tools to improve your experience.
MT5 features an effective trading platform where you can choose between individual trading and ordering accounts. You get a wider variety of order types and execution methods with access to market depth. MT5 features a wide array of built-in analysis tools that make it more reliable. You can also choose pre-installed technical indicators and trading robots on the platform to streamline any tedious decision-making. On that note, you can even develop your own Expert Advisors using the programming language MetaQuotes Language 5 (MQL5). If you are on the go, trading is available on mobile. Your Android or iOS devices will be equipped with essential trading tools, orders, charts, and popular analytical tools, all in a single click.
Regarding MT5’s disadvantages, you will find a few complaints regarding the user interface. Some of the advanced tools are intimidating for new traders. The languages used also lack backward compatibility, and you won’t be able to use MT4 programs here.
Verdict
With all things considered, each version of MetaTrader caters to their respective niches. To summarise, MT4 is older but has a more straightforward approach better suited for traders who prefer fewer financial markets at first or for those who prefer simplicity. Meanwhile, MT5 has expanded its uses to more platforms with stocks and cryptocurrencies like Bitcoin and Ethereum. Due to these developments, it is more complex to use. MT5 can also do more trading tasks, which experienced users will find helpful.
In summary, find the best program that works for you. If you are a new trader and need to learn the ropes, try MT4. If you are experienced and wish to expand your scope, go with MT5.