Queconomics – When it comes to the best forex trading site, you will hear about MetaTrader. It is an electronic trading platform used especially in forex trading. Meta trader is very popular in the forex community.
Most of the forex banks and brokerage firms around the world used it exclusively. But many traders are still confused with MT4 and MT5. Here is the explanation for you.
Best Forex Trading Site, Supported Markets
One of the main differences between the two platforms is the kind of their tradable markets. MT4 is particularly designed for forex and also CFD trading.
The MT5, therefore, in addition to CFDs and forex, provides stocks, futures, options, and bonds. Traders can trade thousands of different products that cannot be done on the MT4 platform.
This is a useful and important tool in the best forex trading site for traders. It allows traders to get a deep understanding of the liquidity availability at each price point in the market.
Market depth feature also gives extra market visibility and transparency. This is not offered on the MT4 platform but the newer MT5.
The policy of MT4 for order filling is fill or kill. The meaning is that traders have to execute an order at the specified volume, or otherwise, canceled. The order filling policy of MT5 is more liberal.
It permits partial order filling. For example, if traders do not immediately fill a part of an order, a market order or a limit will be automatically created by the platform and the remaining volume will be filled.
Best Forex Trading Site, Pending Orders
Pending orders of MT4 are separated into four types. They include buy stop, buy limit, sell stop, and sell limit. In the MT5 platform, there are six different types.
The additional types of pending orders are the sell stop limit and buy stop limit. Traders can sell or buy positions if the price crosses the expected entry point and open the trade with the specific price that they want.
MT4 is definitely more compatible using a 32-bit operating system. The platform was released in 2005 where the majority of computers had 32-bit OS, and the platform was designed with this system in mind.
Today, the most commonly used is the 64-bit OS which is compatible with the MT5. It can operate in both operating systems. 64-bit is preferred for maximum efficiency and performance.
The technical indicator function is to detect any various price patterns. Technical indicators provided by the MT4 in the best forex trading site are at the number of 30. Mainly, these indicators are formed by mathematical formulas.
The MT5 has extended its built-in technical indicator by a further 8. That said, these two systems can download external indicators into the platform.
Traders also can write by themselves. So, it is not important to think that the number of indicators determines the quality of a platform.
Sales, Times Data and Strategy Testing
These popular indicators are offered by the MT5 platform and used by many traders in the forex market. The trading activity of a forex currency is provided in this data. It displays the price, date/time, volume, direction for each trade.
Traders can test various trading strategies by using the MT5 platforms since it provides real-time data. At the same time, multiple currencies can be tested.
Without question, now you can understand that the MT5 platform is superior to MT4. It has more features that are better than the MT4.
However, both of them are capable of delivering a good performance for the forex trading community. There might be a significant increase in the number of brokers that use MT5 to provide the best forex trading site.